PITTSBURGH | Development Rundown II

[BrianTH]

Not to be a Debbie Downer, but as touched on in the article they have announced a new plan for the Cold Storage building on a fairly regular basis over the years, and yet nothing has actually gotten started. So I am now refusing to get excited unless and until they actually begin work on it.

[glowrock]

Originally Posted by BrianTH

Not to be a Debbie Downer, but as touched on in the article they have announced a new plan for the Cold Storage building on a fairly regular basis over the years, and yet nothing has actually gotten started. So I am now refusing to get excited unless and until they actually begin work on it.

Oh, I'm aware of the various plans and proposals for it over the years, Brian. I'm just thinking that a conversion to residential is not only the most feasible, but also the best possible thing to happen.

Aaron (Glowrock)

[markson33]

Financing for apartments is the easiest right now - far easier than office. They should be able to get it done.

[Jonboy1983]

Originally Posted by markson33

The rents aren't going to be lower in another building - in fact they will most likely be much higher.

They aren't happy with UPMC in the building. USS is no longer the lead tenant in that building and they don't like that. They want to be in a single tenant building. They also need to consolidate a number of units that are spread out in other locations and they really can't expand in the tower with UPMC in place.

I can certainly understand their dissatisfaction with UPMC hogging the space in the building, and I feel for them. I've pretty much posted my disdain for them taking the space there.

In any event, I'm a little shocked that nobody mentioned how Chevron could be looking at a massive complex taking up 60 acres of land off the Parkway. While it is unfortunate that they're not going to be Downtown, it does make sense as to why they chose that land. They want easy access to/from the airport as well as to popular drilling sites north and south/southwest of the city where most of their drilling activity has been. Given that, they want to be close to I-79.

[photoLith]

Whatever it could still help the city out. He'll from downtown that's not even a 20 min drive, well depending on traffic. I drive 30 min to my job out in the burbs and live in the city so it could still help out the traditional neighborhoods and downtown hopefully.

[themaguffin]

why should US Steel give a shit who else occupies the tower?

[BrianTH]

Originally Posted by glowrock

I'm just thinking that a conversion to residential is not only the most feasible, but also the best possible thing to happen.

I've got no argument with that. It's undeniably a good plan, but we'll see if these people can actually execute it.

[glowrock]

Originally Posted by photoLith

Whatever it could still help the city out. He'll from downtown that's not even a 20 min drive, well depending on traffic. I drive 30 min to my job out in the burbs and live in the city so it could still help out the traditional neighborhoods and downtown hopefully.

Agreed. As you're well aware I work down quite a ways south of town in Southpointe, yet Pittsburgh still gets my city income tax. Can't say my job in Washington County doesn't help Pittsburgh! People want to live in Pittsburgh and the close-in cities/towns around it no matter where their jobs are. Your taxes are based upon your residence for the most part, so no matter where your job is, the community you live in gets the most benefit.

Originally Posted by BrianTH

I've got no argument with that. It's undeniably a good plan, but we'll see if these people can actually execute it.

Agreed, Brian. Agreed.

Aaron (Glowrock)

[pghusa]

Originally Posted by themaguffin

why should US Steel give a shit who else occupies the tower?

LOL, well I'd like to know more about what exactly that poster heard or saw about US Steel being sensitive to that.

That said, how is any of that shocking, sounds like you have never been on a board room conference call, annual shareholders meeting or got stuck in an elevator with a Wall Street type. It takes a certain type of ego to erect a massive phallus, even a more massive ego to pay for its upkeep or lease with the proverbial "other people's money" (tax incentives, credits, sweetheart fed funds carry trade proceeds, and shareholders funds or as Gekko the Great would say the money from "widows and idiot sons").

That sentiment doesn't surprise me one bit, but would love to hear more specifics on what or how it was relayed.

Before you think the above is a bunch of hyperbole or fiction, just remember that Carl Ichan who was the part of the basis of Larry the Liquidator and Gekko not only attempted a barbarian at the gate to have an office on the 63rd floor of 600 Grant Street, but actually got outfoxed by the even larger ego of then CEO Roderick, who saved the corporation.


So yes, no need for names but would love to hear some of how its being said or communicated that US Steel have their feathers ruffled (or would cage rattled be better in this case? lol)

[Evergrey]

It's not just US Steel that wants out of the UPMC Tower...

Originally Posted by themaguffin

why should US Steel give a shit who else occupies the tower?

http://triblive.com/business/headlines/3727100-74/steel-tower-upmc#axzz2RsRwbXbN

...

Brokerage firm Janney Montgomery Scott LLC moved to PPG Place in December, said Jim Foley, branch manager.

“PPG's space was a better size for our company. We found the area around PPG Place had more restaurants and events than we found on Grant Street. And the personnel that UPMC was bringing into the building were more clerical and administrative than the professional employees who are important for our business,” he said.

...

[glowrock]

Originally Posted by Evergrey

It's not just US Steel that wants out of the UPMC Tower...



http://triblive.com/business/headlines/3727100-74/steel-tower-upmc#axzz2RsRwbXbN

So basically UPMC isn't high-brow enough for those egotistical, arrogant self-righteous pricks, eh?

Aaron (Glowrock)

[themaguffin]

Well, I find the signage on the tower horrible, especially for a "non profit" but I do think the other businesses are being a little... I don't know what... I mean are people walking around in lab coats or scrubs? Jesus come on...

anyway, looks like they will hang around the triangle...

U.S. Steel expected to stay in Downtown

[Urbana]

Originally Posted by themaguffin

Well, I find the signage on the tower horrible, especially for a "non profit" but I do think the other businesses are being a little... I don't know what... I mean are people walking around in lab coats or scrubs? Jesus come on...

anyway, looks like they will hang around the triangle...

U.S. Steel expected to stay in Downtown

Fantastic news for whichever development they choose! Either we will see a new US Steel Tower or a much improved Buncher Plan!

A win win!

I, however, remain skeptical, there doesn't seem to be any definitive source for the information in the article.

[BrianTH]

Reading between the lines, it appears to me the reporter had a source who indicated that U.S. Steel is no longer looking at the Findlay location, which leaves only Greater Downtown locations among the possible locations they are reportedly considering. But it seems to me the reporter was not definitively told they had committed to locating in Greater Downtown somewhere.

[themaguffin]

I don't see this as meaning Buncher plans would improve. I still think they would be small "campus" buildings and think that it would be preferred from a downtown point of view if they went to one of the tower options since it takes a significant tenant commitment to get one of those off the ground and Buncher's tiny buildings can get smaller renters.

I would think either the proposed Oxford tower or an in between setting would be the Pens site - a location where there could be moderate height and yet campus like since it's somewhat isolated and contained.

[BrianTH]

Buncher's plan for the office-oriented portion nearer Downtown allows for the buildings to be up to 20 stories high. A "campus" in that location of two or three 15-20 story buildings would strike me as a worthy "use" of a prospective anchor tenant like US Steel, and in fact I would prefer that outcome to the Oxford project (since I would prefer Oxford preserve the existing building).

In my view a similar sort "campus" of two or three 15-20 story buildings would also be fine in the Downtown-adjacent portion of the Lower Hill/former Arena site. What I wouldn't want to see is a "campus" made up of a much larger number of much shorter buildings (at least not in any of these locations immediately adjacent to Downtown).

[Evergrey]

I'm hoping U.S. Steel goes the Oxford route. Give us another signature tower as opposed to an anonymous, isolated "campus" on the fringe of Downtown.

[Evergrey]

more on "horizontal campuses"...

http://www.bizjournals.com/pittsburgh/bl...hevron-eyed-200k-square-foot-office.html

May 3, 2013, 12:34pm EDT

Chevron eyed 200k square foot office downtown



After more than a year of off-the-record mumblings about the size and scale of Chevron Corp.’s plans for an regional headquarters campus in the Pittsburgh area, I have what I believe is the first source with some direct knowledge willing to speak publicly about what Chevron wants to build in Western Pennsylvania.

In the wake of the global oil and gas giant confirming on Wednesday that it is in the process of buying two major properties in Moon Township for an office campus, Chevron’s scouting of downtown last year is coming more to light.

Jim Scalo, principal of Green Tree-based Burns and Scalo Real Estate Services, said that he talked with Chevron about becoming an anchor tenant at his company’s proposed high-rise tower he hopes to build at 1 Smithfield St.

“They wanted a horizontal campus,” said Scalo, of Chevron in an email.
At the time, Scalo said Chevron indicated it would need 200,000 square feet in a downtown Pittsburgh office. Scalo also said that Chevron indicated it wanted to build an office campus of up to 500,000 square feet in the suburbs.

...

[Evergrey]

http://www.bizjournals.com/pittsburgh/news/2013/05/03/no-headquarter-change-for-alcoa-stop.html

May 3, 2013, 12:16pm EDT


Stop asking if Alcoa will move its headquarters here



Will Alcoa Inc. move its headquarters back to Pittsburgh from New York City?

Chairman and CEO Klaus Kleinfeld answered the question from a shareholder at Alcoa's annual meeting Friday morning in downtown Pittsburgh with a pretty resounding, “no.”

But Kleinfeld addressed what he called the “myth that we have a large headquarters in New York.”

In fact, the company, which was first incorporated in Pittsburgh in 1888, has a relatively small office of roughly 70 people, mostly top executives, said Kleinfeld. Pittsburgh has the administration offices, the technical center, where much of the company’s new products are developed, and a total of 3,100 employees. The headquarters officially moved to New York in 2006.

Kleinfeld said he understands the emotional side of the Alcoa (NYSE: AA) headquarters debate, but it no longer a discussion within the company. New York City has a clear cost advantage as well as other benefits.

For international executives who rotate into Alcoa's U.S. operations, their children to continue their education at international schools in New York, and it’s easier for spouses to find jobs.

Plus it’s difficult to get people in and out of Pittsburgh as needed for business.

“Those that live here, the logistics have not massively improved,” Kleinfeld said. They've deteriorated, he said.
...

[Captain Crash]

I've often wondered if US Steel has looked into the old Carrie Furnace site for their corporate campus. Nice chunk of land on the riverfront that's being developed for that exact sort of future use. Would put their campus adjacent to the old preserved furnace site as and just a hop away from the Braddock Works. That would be pretty isolated though. Just a thought; hope they stay downtown.