PITTSBURGH | Development Rundown II

[Austinlee]

Originally Posted by Evergrey

You talk like it's FREE for employees to travel to suburban workplaces.

Private automobiles whisk Pittsburgh's workforce along the region's efficient autobahns until they are deposited into a generous lot of free parking adjacent to their stimulating workplace campuses.

One of the big problems with locating a major company with a regional workforce in a distant suburban quadrant... is it becomes a massive pain for employees who don't live in that suburban quadrant to drive to work. If my company relocates to Cranberry... and I'm accustomed to taking the T from Bethel Park to Downtown... my options now are quite limited, time-consuming and expensive. It may seem appealing for a US Steel to hide away in an obscure nook, but locational centralization is a a powerful asset in many regards.

In my experience... the aging but still-holding-the-reins-of-power Baby Boomer cohort prefers the discredited, inefficient and backwards-looking suburban office park. Young talent tends to prefer dynamic work environments that are found in urban locations accessible by transit, bike and foot.

Correct as usual.

[BrianTH]

I don't think there is one right answer for all companies, and it really depends on factors like what sort of employees you are typically recruiting. Anyway, here is an interesting short read on the subject:

http://management.fortune.cnn.com/2011/07/14/companies-head-back-downtown/

[AaronPGH]

Ace Hotel article in Next American City in the main discussion forums. I dropped the $2 on this story and it's totally worth it. Huge article:

http://forum.skyscraperpage.com/showthread.php?p=5907844#post5907844

[Topher51]

If a company as big as US Steel that has long been located in the downtown area moves to the suburbs, it is going to be more expensive and more time consuming for most of the employees to commute to a new campus, no matter where they put it. I would imagine most of the employees bought houses or rented places so that they would be close to the triangle, because downtown is relatively tough to get to from the suburbs (compared to other cities I have lived in). Now all those people are going to have to drive out to the airport, Cranberry or Southpointe? I would be pissed (although I live in Peters Township, so Southpointe would rock for me in that theoretical situation).

BTW, I did the structural design for the Santa's House in Market Square. I haven't seen it in person yet, but am taking my kid down there after Thanksgiving. I hear the square looks awesome. Desmone and the Downtown Partnership did a great job with that.

[themaguffin]

Exactly, it's one thing if a company already existed in the burbs and perhaps moved to another location within that direction, say Robinson to Moon or vice versa, but a lot of people work for US Steel obviously and that is a different dynamic. It doesn't mean that the company won't move to the burbs, but I would be very frustrated if I lived far other direction.

[markson33]

I hope that US Steel stays downtown. It would be great if they built a new headquarters in the city. I definitely agree that younger workers desire a more urban environment.

That being said, I couldn't disagree more that it would be more expensive for employees, or that US Steel would lose many employees if they moved to the suburbs. Most of US Steel's employees undoubtedly already live in the suburbs and drive to work or take the bus, so they are spending between $100-$350 per month just to get to work. If they move to the Parkway West it will certainly be a hardship for some who live in the east, but for the majority of employees it will not be a hardship and will cost them less money. They will undoubtedly lose some employees, but given the current economy probably not many.

The savings in efficiency and operating expenses that they would recognize in a suburban campus would outweigh the cost of the employees they lose.

[Buzz Pittsburgh]

Originally Posted by markson33

I hope that US Steel stays downtown. It would be great if they built a new headquarters in the city. I definitely agree that younger workers desire a more urban environment.

That being said, I couldn't disagree more that it would be more expensive for employees, or that US Steel would lose many employees if they moved to the suburbs.
...

The savings in efficiency and operating expenses that they would recognize in a suburban campus would outweigh the cost of the employees they lose.

I agree with you, and with just about everyone here, that U.S. Steel belongs downtown.
I also agree with you on your assessment about employee costs vs. corp costs in the move to the suburbs (in general). I remember when Westinghouse was moving from Monroeville to Cranberry, they didn't lose too many employees (they were expanding, so they were ready to spend $ on new employees anyway).

Of course, that was trading one suburb for another, and I think U.S. Steel would be moving for different reasons. Westinghouse was moving for expansion purposes (correct me if I'm wrong ) so they needed more space, which a campus in the suburbs provides. I think the I-79 corridor is a logical choice for more space with ample access to neighborhoods and highways in the area.

So, if U.S. Steel would move to the suburbs, where would they go? I am only intimately experienced with the west hills, where the obvious choices are the airport area (near —'s HQ or on the other side in McClaren Woods) and Moon/North Fayette/Robinson near the town center, FedEX Ground, and the RIDC park. As for the other suburban office areas, I notice that many have already mentioned Cranberry (most likely Cranberry Woods) and Southpointe (I think U.S. Steel would end up being in Phase II of that project). What are some other possibilities?

While I'm thinking about that, what would be the possibilities for U.S. Steel if they stayed downtown? I mean, a new skyscraper could (conceivably) go anywhere if it were built with enough square footage. If no new skyscraper, would they retrofit some complex of buildings to their uses? I can't think of any place in the city with enough empty buildings (that wouldn't just be knocked down in favor of new buildings). I think the obvious choices are the old Civic Arena site, Hazelwood, the Strip District (BuncherLand), and the undeveloped land near Station Square.

Thoughts?

[kennypip]

Originally Posted by Buzz Pittsburgh

I agree with you, and with just about everyone here, that U.S. Steel belongs downtown.
I also agree with you on your assessment about employee costs vs. corp costs in the move to the suburbs (in general). I remember when Westinghouse was moving from Monroeville to Cranberry, they didn't lose too many employees (they were expanding, so they were ready to spend $ on new employees anyway).

Of course, that was trading one suburb for another, and I think U.S. Steel would be moving for different reasons. Westinghouse was moving for expansion purposes (correct me if I'm wrong ) so they needed more space, which a campus in the suburbs provides. I think the I-79 corridor is a logical choice for more space with ample access to neighborhoods and highways in the area.

So, if U.S. Steel would move to the suburbs, where would they go? I am only intimately experienced with the west hills, where the obvious choices are the airport area (near —'s HQ or on the other side in McClaren Woods) and Moon/North Fayette/Robinson near the town center, FedEX Ground, and the RIDC park. As for the other suburban office areas, I notice that many have already mentioned Cranberry (most likely Cranberry Woods) and Southpointe (I think U.S. Steel would end up being in Phase II of that project). What are some other possibilities?

While I'm thinking about that, what would be the possibilities for U.S. Steel if they stayed downtown? I mean, a new skyscraper could (conceivably) go anywhere if it were built with enough square footage. If no new skyscraper, would they retrofit some complex of buildings to their uses? I can't think of any place in the city with enough empty buildings (that wouldn't just be knocked down in favor of new buildings). I think the obvious choices are the old Civic Arena site, Hazelwood, the Strip District (BuncherLand), and the undeveloped land near Station Square.

Thoughts?

I would prefer an iconic glass skyscraper on Grant Street across from the city county building.... Grant Street needs an all glass iconic skyscraper. If built next to Oxford Center, Grant Street will be complete......

[Jonboy1983]

Originally Posted by kennypip

I would prefer an iconic glass skyscraper on Grant Street across from the city county building.... Grant Street needs an all glass iconic skyscraper. If built next to Oxford Center, Grant Street will be complete......

Two Oxford was proposed for that very space, but it got shelved either in the late 1980s or during the early 1990s recession. It's a shame; it would have been over 50 floors...

[Johnland]

Originally Posted by kennypip

I would prefer an iconic glass skyscraper on Grant Street across from the city county building.... Grant Street needs an all glass iconic skyscraper. If built next to Oxford Center, Grant Street will be complete......

That would be great. A glass and steel tower would be terrific. I kow they probably don't have the money or would not want the expense, etc., but it just would be good if US Steel (or USX) stayed in downtown.

[glowrock]

It won't be in Southpointe, namely because it's more or less already full. Two major tenants are already building headquarters in the new section, namely Ansys and Mylan. Both of them have current buildings, but have nowhere near enough room for a corporate campus the size of USX...

Aaron (Glowrock)

[markson33]

Originally Posted by glowrock

It won't be in Southpointe, namely because it's more or less already full. Two major tenants are already building headquarters in the new section, namely Ansys and Mylan. Both of them have current buildings, but have nowhere near enough room for a corporate campus the size of USX...

Aaron (Glowrock)

This might be what ultimately keeps them downtown (or the fringe). The options for a user that large aren't very good until you get out to the airport or Cranberry. I can think of maybe six options closer to town.

[Austinlee]

IMO, the only realistic options they will consider will be downtown or near downtown namely the strip or the north shore or else right next to the airport in Findlay Twp like —'s Sporting Goods new HQ.

Also, I think if they leave the US Steel tower, UPMC will grab up all the remaining space.

[markson33]

I think US Steel leases about 450,000 sf at the USS Tower. If they truly want 1m sf they will have to move. I'm not sure even UPMC would swallow all of that. USS TOWER currently has something like 150,000 sf available.

[Jonboy1983]

Originally Posted by Austinlee

IMO, the only realistic options they will consider will be downtown or near downtown namely the strip or the north shore or else right next to the airport in Findlay Twp like —'s Sporting Goods new HQ.

Also, I think if they leave the US Steel tower, UPMC will grab up all the remaining space.

If I were a city council member, I'd be screaming HELL NO at this! If that were to piss off UPMC, oh well...

[markson33]

Why would it matter if UPMC leases the space? I don't see why city council would care.

[themaguffin]

The city has no say (and I would say no interest) of whom leases space in an office building. Zoning yes, but we're talking about occupation of an existing structure, not a company asking to build something.

[glowrock]

Not to mention UPMC doesn't OWN the space, so property taxes and their non-profit exempt status doesn't mean anything in this situation. I do agree, if USS leaves their tower, then I have a feeling UPMC will lease up all of the remaining space, at least over time. I also agree with Austin that the only likely locations for them will be near-downtown (Arena site, Strip, etc...) or out by —'s HQ near the airport. I don't see them going to Southpointe, Cranberry or anywhere else like that.

Aaron (Glowrock)

[Minivan Werner]

I would think that one negative about moving to the burbs or a place like Findlay Twp. is re-sale value. If and when USX would be inclined to move HQs again for whatever reason, who the heck would be willing to buy up 1,000,000 square feet of space way out there? As opposed to downtown where there is always a market and you can divide that space up for multiple buyers/leasers much more easily.

I guess that's looking pretty far into the future and probably wouldn't be too high on a corporation's list of concerns.

Maybe if they want a campus type deal with airport access and the city wants them in the city limits, a nice compromise would be to build where the Parkway Center Mall is/was.

[Wheelingman04]

This is a refresher from the Business Times as to what possible suburban location US Steel has been looking at the closest and most intently. It is in Findlay Township


http://www.bizjournals.com/pittsburgh/pr...steels-headquarters-search.html?page=all