Developing Pittsburgh Fall 2022 Edition

EXECUTIVE DIRECTOR’S MESSAGE

A s we enter fall of 2022, it is apparent that our city has emerged from the pandemic and investment and economic activity has normalized. However, this return to growth has not been equal throughout our city and region. Particularly, downtown continues to lag in this economic rebound. To start 2022, Class A and Class B office vacancy rate was near 21 percent and that has impact throughout the entire Central Business District (CBD). Retailers, restaurants, our Cultural District, and most importantly our fellow Pittsburghers, need a thriving downtown. We in the commercial real estate (CRE) community have an opportunity to help propel our downtown’s resurgence. Following the lead of the Pittsburgh Downtown Partnership (PDP), our state, county, and city are preparing plans to invest $9 million in converting historic office buildings to multifamily residential.

While this investment is only a pilot program, it is an important first step in our city’s plans to revitalize our downtown. The CRE community must partner to help produce ROI and public value to justify further investment in these conversions. With a new Governor in 2023, we need to ensure that the next administration understands the importance of investing in our CBDs. Our legislative leaders also need to hear from the CRE community about the benefits of these investments. Additionally, Target’s move into downtown presents our city with an opportunity to prove that sizable retailers can thrive in the CBD. If Target succeeds, other top retailers will follow. We should support Target and encourage our networks to support them as well. Our downtown businesses showed resiliency through 2020 and 2021. Now we need to support these businesses with our spending. A vibrant downtown helps the

entire economy, including the CRE sector.

If our city and region are going to fully bounce back from the pandemic, we can’t leave downtown behind. Thankfully, the PDP is working hard to ensure there is a vision and strategy to rebound. We in the CRE community must continue to partner to help accelerate this rebound.

Brandon J. Mendoza Executive Director NAIOP Pittsburgh

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