While updating the SVN|TRCA website we recently added a page titled “WHY PITTSBURGH?” But this question can easily be answered with another question, “why not?” It may seem like the answer is easy, but really – why not? If you aren’t familiar with the ‘burgh, you may not realize all that it has to offer. From the metro area to the suburbs, Pittsburgh is only growing; there’s more than $4 billion in projects in the works.
Education.
Following cities like Boston and D.C., Pittsburgh is recognized as one of the top cities for educated young people. SmartAsset declared Pittsburgh the fourth best city for recent graduates. This can be attributed to a few factors like the proximity of the universities, the culture of Pittsburgh, the cost of living, and the opportunities post-graduation. Home to more than 30 higher educational institutions, the city can anticipate graduates each year to contribute to its growing job market. According to the State of Downtown report, 65% of students who graduate from these local institutions are employed in Pittsburgh. Students who earn degrees in medicine and technology put Pittsburgh on the map for the advancement of research and development. Investments are being made in these fields as well; allowing Pittsburgh to benefit even more. For example, is Carnegie Mellon announcing the addition of the first Artificial Intelligence undergraduate major.
Business.
Just as education plays a large role in the success of the market, so do the businesses the graduates are investing their time and knowledge into. Pittsburgh is home to multiple Fortune 500 companies, such as Kraft Heinz, US Steel, Dick’s Sporting Goods, and WESCO. These regional companies alone totaled about $83.6 billion dollars in revenue. Other large companies such as Uber, Disney, IBM are following suit and investing in Pittsburgh’s market for headquarter locations. Pittsburgh has been taking steps to encourage and support new business models and local entrepreneurs. Advisory councils have proposed supporting start-ups and entrepreneurs through grants and funding that will go towards the beginning stages of businesses involved. The drive for this could increase the demand for properties in the area, especially for new and innovated spaces.
Livability.
Pittsburgh is a hot spot due to the affordable cost of living, especially appealing to younger people like local college graduates. To appeal to younger generations, the city has taken steps to keep up, like investing in transportation by expanding bike lanes, and modernizing the new terminals at Pittsburgh Airport. The restaurant industry is reaping the benefits too. Business is booming: 32 new dining options have opened in the downtown area alone since 2017! Along with this, sports, art, and entertainment draw a crowd annually, and are continually investing upgrades for their venues to keep up with crowd demands.
Investments.
As the Pittsburgh market continues to grow and strengthen, real estate investors are looking to make long-term capital investments in hopes to attract new tenancy. Coinciding with this business investment boom is the interest of younger people living and enjoying the amenities of downtown. The Golden Triangle saw a 16% increase in downtown residency last year. Clearly, when you invest in Pittsburgh, you are investing in more than just one market. You are putting your wealth into a city that is supported by businesses that are supporting each other. According to the report, $4.6 billion dollars in projects have been completed in just 10 years, meanwhile 3.9 billion is actively being invested in to projects right now. This year alone building permits for Pittsburgh have grown by a factor of two when compared to the last 5 years. In 2016 the CBD gave out 169 building permits, in 2017 it increased to 348. In addition to the residency, the overall population of downtown Pittsburgh, has grown by almost 3,000 since 2015.
Put your money where the market is, and invest in Pittsburgh – need more evidence? Check out our WHY PITTSBURGH? page on the SVN | Three Rivers Commercial Advisors website.
