After writing yesterday’s post about Pittsburgh’s economy, I did a quick search of the local newspapers to see how the commercial real estate market was doing in the Pittsburgh region.
Despite concerns around the nation that commercial real estate will follow the downtrend in the nation’s residential housing market, and the postponement of the downtown housing project in Pittsburgh’s Theater District, Riverparc, Pittsburgh’s commercial real estate market has had some pretty good news lately.
Over the past year, the vacancy rate is down from 20 percent to 18 percent, UPMC located itself at the U.S. Steel Tower, Siemens Engineering signed at the Union Trust Building, BNY Mellon plans to add about 2,000 employees to its downtown locations, and there is now a report of a tentative agreement for the sale of law firm Reed Smith’s building. Reed Smith is moving to Three PNC Plaza in 2009.
With the construction of the new Penguins arena in the Hill District, developers are now looking at the Uptown corridor between downtown Pittsburgh and Oakland.
And the Pittsburgh area has been successful in attracting alternative energy companies to the region as well. EverPower, involved with harnessing wind power, is opening an office in Lawrenceville and Flabeg will open a manufacturing plant near the Pittsburgh airport to produce solar power components.