Category Archives: Economy
Above left to right: Paul Horan, Edward Lawrence
On Monday, February 17th, Colliers International | Pittsburgh participated in the quarterly meeting of Pittsburgh Robotics Network in the current offices of Hebi Robotics, the Chocolate Factory in Lawrenceville.
Paul Horan and Edward Lawrence of the Colliers Pittsburgh Office Brokerage Team delivered a comparative overview of the office markets in Pittsburgh, Boston and Silicon Valley. The presentation also included non-real estate factors such as cost of living, crime rate and education, information that was provided by Patty Horvatich and the research team of the Pittsburgh Regional Alliance.
The event was well attended and marks one of the first such events for the relatively newly formed, Pittsburgh Robotics Network.
“The intellectual and creative firepower in the room was remarkable. Robotics and Artificial Intelligence are two areas that are fueling the Pittsburgh economy, stated Lawrence, “The comparative information that we presented demonstrated to the group of attendees that Pittsburgh is well positioned to foster their growth, particularly in areas such as rental and housing costs.”
For more information about the Pittsburgh Robotics Network, please click here.
Every year, the Allegheny Conference and Pittsburgh Regional Alliance release a Business Investment Scorecard for the Pittsburgh region. The scorecard serves as a data snapshot of Pittsburgh’s economic development progress while highlighting specific changes in the region’s investment landscape. The scores are created by taking into account regional investment deals, capital expenditures and new and retained jobs across the 10-county region. A total of 340 deals were tracked in 2018; which beats the previous record of 308 deals back in 2007.
The scorecard paints a promising picture for the Pittsburgh region. The amount of jobs in our region increased for the 4th straight year. 2018 saw 7,660 new jobs added to the market, a 15% rise from 2017. 2,886 of those jobs fell in the Information Technology and robotics category.
For the second year in a row, Pittsburgh’s IT sector was the most active for investment deals, with a 51% increase in activity from the previous scorecard. IT employees in the Pittsburgh region can expect to see wages 94.5% higher than the average job wage in the region.
The second most active sector for deals across Southwestern PA was manufacturing. Jobs in this industry raised 62% from 2017, for a total of 4,000 new jobs. American Textile Company, Ellwood Quality Steel (EQS) and Bergad, Inc. all expanded within the market, thus bringing almost 150 new jobs to Pittsburgh.
Pittsburgh’s number one contributor to the National Gross Domestic Product (GDP) were deals in finance and business services. These industries were also the regions largest employer with over 230,000 total personnel. Bombardier Transportation, Bechtel Plant Machinery and Roadrunner Recycling all expanded within the region in 2018.
This scorecard gives investors a glimpse into the future and confidently demonstrates how Pittsburgh continues to thrive in different sectors.
To see the full scorecard, click here.
The Steel City has claimed yet another accolade to add to its growing list. USA Today recently voted Pittsburgh as the best large metro area for jobs.
The rankings were based on “the number of hiring opportunities relative to population, the area’s affordability and job satisfaction,” according to Glassdoor.com, a website which allows former and current employees to anonymously review companies and their management.
This is far from Pittsburgh’s first recognition as one of the best cities in the country. In 2018 alone, Pittsburgh was selected as the second most livable city in the United States, number one city for the most affordable rent, number 34 out of the top 100 places to live in the world, and number one city for young people to live based on job opportunities, affordability and livability.
To read the full USA Today article, click here.
Office Market May be Nearing Peak
At the conclusion of 2015, Pittsburgh’s office market is beginning to show
signs of peaking. Overall office vacancy rates for the 4th quarter increased
slightly over 3rd quarter results from 8.1% vacant to 8.3% vacant at year
end. Rental rates for office space in all submarkets and classes decreased
slightly in the 4th quarter to $20.51/sf, from $20.55/sf in the 3rd quarter, or
a 0.02% decrease.
Pittsburgh’s CBD had a few notable transactions in 2015. PNC moved
into its new Platinum LEED Certified 800,000 SF office tower located at
300 Fifth Avenue in the 4th quarter. PPG Industries, Inc. maintained its
headquarter presence at One PPG Place, renewing approximately 300,000
SF there. In November 2015, US Steel Corporation announced it would not
be moving forward with a planned “300,000 SF Build-to-Suit” at the site of
the former Civic Arena, instead, electing to extend its lease commitment at
600 Grant Street for one more year through the summer of 2018. Millcraft’s
Tower Two-Sixty, a mixed use development including office, retail and a
hotel adjacent to the vibrant Market Square, signed three office leases and is
closing in on 80% occupancy prior to the planned Spring 2016 completion
Click here to see the full report.