Release Date: Tuesday, May 10th 2016
Pittsburgh Downtown Partnership Releases 2016 State of Downtown Pittsburgh Report
- PUBLICATION PRESENTS KEY ECONOMIC INDICATORS THAT POINT TO A HEALTHY DOWNTOWN PITTSBURGH
- MORE THAN $636 MILLION IN NEW PROJECTS ANNOUNCED IN 2015
- 21% INCREASE IN INVESTMENT OVER 2014
- 1.4 MILLION SQUARE FEET OF NEW OFFICE SPACE ANNOUNCED
- 761 NEW HOTEL ROOMS COMING
- 1,380 RESIDENTIAL UNITS ADDED TO THE PIPELINE IN 2015
Downtown Pittsburgh, PA – Today the Pittsburgh Downtown Partnership released the 2016 State of Downtown Pittsburgh report. The fifth annual publication provides a comprehensive look at economic development indicators in Downtown Pittsburgh as well as data set comparisons to similar Central Business Districts.
Greater Downtown remains the epicenter for development with more than $636 million in new projects in 2015 reflecting a 21% increase from the $526 million announced in 2014. Due in large part to the announced redevelopment of Allegheny Center into the mixed-use Nova Place, projects on the North Shore comprise 47% of the overall investment for 2015, the Golden Triangle accounts for 23%, and the Strip District is home to 28% of the new developments. Projects announced in 2015 alone will provide 1.4 million square feet of office space, 761 hotel rooms, and 1,380 residential units to Greater Downtown.
The 2016 State of Downtown Pittsburgh highlights seven key sectors that continue to make the case that the health and vitality of Downtown is equally connected to that of the greater region. “Downtown is well positioned and attractive to not only local, but outside investors,” said Jeremy Waldrup, President and CEO of the Pittsburgh Downtown Partnership. “To see a greater than twenty percent increase in investment over the previous year, speaks very positively to the confidence developers have in our market. These investments are happening in new corners of Greater Downtown and will have a significant impact on the street life and vitality of these neighborhoods.”
Additional Key Findings of the Report Include:
The Hotel Market has transformed considerably over the past five years and is still very strong and growing
- Between 2010 and the end of 2015, annualized average occupancy has increased from 64% to 69%
- Average daily rate has increased from $140.75 to $162.05, a 15% increase
- Between 2010 and 2015, the RevPAR, an industry standard performance metric, increased by nearly 25% and included an absorption of 1,640 hotel rooms in the same timeframe
- During 2015 and the beginning of 2016, five new hotels have opened in Greater Downtown, expanding the hotel market by 21% in just one year
- Due to proposed and under-construction projects in the Golden Triangle, there is a hotel pipeline of 1,535 hotel rooms in the next two years, or a 28% increase to the existing inventory
The Commercial Office Market is solid, but evolving
- The average Class A lease rate has increased by nearly 15% in four years to an all-time high of $27.70
- Class A occupancy is at 93.2% in the Central Business District
- Salaried jobs in Downtown decreased 5.8% between 2011 and 2014, which correlates with 2.5 million square feet of office space converting to residential properties and hotels. However, 1.6 million square feet of office space is projected to become available in the Central Business District in the next 2-3 years, including 500,000 square feet currently under construction or proposed, highlighting the importance of attracting new businesses and jobs
Housing in Downtown continues to be a hot market, with demand for rental and condo units continuing to rise
- 92.2% of the 5,882 available apartments in Greater Downtown were rented at the end of 2015
- 1,685 new residential units have come online since the beginning of 2010
- 3,416 units are currently in the development pipeline in Greater Downtown
- The Golden Triangle population grew 33.7% between 2010 and 2015 ( from 3,629 to 4,852) and the Greater Downtown population grew 19% (from 12,100 to 14,395)
- There has been a 20% increase in rental rates since 2009
- Sales prices of condo units have increased 46% since 2011
Sustainability efforts in the Golden Triangle are producing remarkable results
- Through the Green Building Alliance’s 2030 District, efforts to meet targeted goals, including reducing water and energy consumption, transportations emissions, improving indoor air quality and more, yielded a performance at 20% below the baseline of energy consumption, meeting the 2020 goal five years early
- LEED-certified space in Greater Downtown has increased 185% since 2010, with 5.5 million square feet of LEED-certified space, accounting for roughly 16% of leasable office space
Other notable findings in the report include:
- Building permits in Greater Downtown increased 83% over 2014, with the value of permits issued increasing 105%
- In 2015, Downtown performing arts and entertainment venues held a combined 2,966 events, with a total attendance of nearly 1.6 million people, an increase of 9.7% over the previous year
- The Downtown population is getting younger, research indicates a younger Downtown population with 29% under the age of 30 and 52% under the age of 40, compared to 26% and 45%, respectively, in 2012
- The Penn Avenue protected bike lanes averaged 800 rides per day in 2015, between May and October
- 2,155 new parking spaces are planned, along with the new 321-space parking garage as part of the Tower Two-Sixty project, for Greater Downtown.
Support for the 2016 State of Downtown Pittsburgh was provided by Presenting Sponsor: Urban Redevelopment Authority of Pittsburgh; Supporting Sponsors: Alco Parking, Huntington Bank, Point Park University; and Featured Sponsors: CBRE, Cohen & Grigsby, HFF, JLL, and Q Development
Data presented in the 2016 State of Downtown Pittsburgh is derived from many sources, which are noted in the publication, and covers activity within the boundaries of the Downtown Business Improvement District and Greater Downtown. Greater Downtown includes the Golden Triangle, North Shore, South Shore, Strip District (to 33rd Street), Lower Hill and Bluff/Uptown.
The complete Report is available for download at DowntownPittsburgh.com/sodp.