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16C — June 23 - July 13, 2017 — Mid-Year Review — M id A tlantic
Real Estate Journal
N ext T ech
By Gerard McLaughlin, Newmark Knight Frank Pittsburgh – Beyond the Steel
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technology hub and hotbed for artificial intelligence and au- tonomous vehicle development is triggering unprecedented revitalization. Pittsburgh ar- tificial intelligence start-up Argo AI, recently acquired by Ford, which pledged a $1 bil- lion investment in the race to develop driverless vehicles, is headquartered in Pittsburgh’s urban Fringe Strip District, as are Uber’s autonomous vehicle operations. Delphi has also been testing autonomous SUVs in Pittsburgh. Based in the United Kingdom, Delphi purchased Pittsburgh start-
dentified as a Next- Tech market, Pittsburgh has transitioned from
MetLife Investments. Ama- zon, Apple, Facebook, Google and Uber are among the us- ers that have caused rents and property values to surge. In the past six years, class A asking rental rates have risen nearly 16%. Furthermore, over the past year, venture capital financing increased by 8%, while nationally, funding dropped by 32%. Although the energy, finan- cial and business services, health care and life science in- dustry sectors remain well rep- resented within Pittsburgh, the city’s status as a growing
up Ottomatika in 2015 and has formed a partnership with BMW, Intel and Mobil- eye. Furthermore, Aurora Innovation, started by former Autopilot, Google and Uber executives, has based half of its staff in Pittsburgh, where it will begin testing driverless vehicles later this year. Outside real estate investors have taken note of Pittsburgh’s increasing property values. Over the past five years, over 100 office assets—17.2 million s/f—have traded, and nearly half were to investors new to the market or expanding
within the marketplace. While technology, health- care and professional services dominate the CBD, Fringe and urban Oakland/East-End submarkets, the energy sector has spurred the majority of growth in most of the subur- ban submarkets over the past few years. Even though this industry sector has met with challenges recently, Royal Dutch Shell’s construction of a $6 billion ethane cracker plant in the region will likely attract petrochemical companies and supporting businesses, breath- ing new life into the suburbs. Although Pittsburgh no longer enjoys its historical strength in heavy industry, the city has helped insulate itself from economic downturn through a diverse industry base. Access to leading uni- versities, a talented workforce, corporate and venture capital investment, and a low cost of living will keep Pittsburgh on the radar well into the future. Gerard McLaughlin is Executive Managing Di- rector at Newmark Knight Frank in Pittsburgh, PA. n existing dormitory and con- struction of the new five-story building with its first floor located partially below grade. A streamlined traditional exterior combines with a con- temporary interior to support collaboration, incorporate advanced technology, and establish hierarchy. Sustain- able features were woven into design and construction, en- abling the project to achieve LEED Gold Certification. GREYHAWK has success- fully managed more than $3 billion in construction proj- ects and resolved disputes on more than 1,000 assign- ments with construction val- ue exceeding $10 billion. The GREYHAWK team stakes its reputation on building client trust and bringing value to each assignment. Amanda Gibney Weko is a writ- er and communication consultant. Her practice, AGW Communications, is based outside Philadel- phia in Haddonfield, NJ. n GREYHAWK: Award-winning project . . . continued from page 3C Commitment to Excellence
i t s i ndu s - trial “Steel City” roots to a future- ready econ- omy . Over the past 10 years, Pitts- burgh has a t t r a c t e d
GerardMcLaughlin
more than 70 IT-focused firms from Silicon Valley and else- where. Stem jobs have soared by 44% over the past three years, according to a study by
where will you be going to work tomorrow?
The commercial real estate experts at Newmark Knight Frank can help you decide.
We provide full service, integrated real estate solutions for tenants, buyers, landlords, owners, developers and investors.
210 Sixth Avenue, Suite 600, Pittsburgh, PA 15222 T 412.281.0100
www.ngkf.com
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