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Originally Posted by Evergrey
And yet all we seem to hear about are new "flex" office buildings in the Airport Corridor.
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Really? PNC Tower? BKSQ 2.0? Market Square Gardens? None of that rings a bell?
The report is pretty interesting on this issue, however. Pittsburgh falls into the category where office absorption in the walkable areas is positive, but they are still losing regional share to the autocentric suburbs. That puts Pittsburgh ahead of areas where absorption in the walkable areas is negative (e.g., Cleveland), but behind places where the walkable share is either growing or decreasing at a slower rate.
That would not be an ideal situation if it continues forever, but I think it is important to put those facts into the overall context of Pittsburgh's economic history. Pittsburgh had a big office building boom pre-WWII, and it has done a decent job preserving that legacy, so at least until very recently, there has not been a huge shortage of office space in walkable areas (this is indicated, among other things, by the relatively low premium for walkable-area office space in Pittsburgh). Conversely, Pittsburgh went through an extended economic bust period right when lots of other cities were going through a suburban office boom.
So I think the current ranking is reflective, at least in part, of a normalization process where Pittsburgh is going to be catching up a bit in terms of suburban office development. But with vacancy rates low and rents increasing in the walkable areas, I also think it will continue to have positive absorption in the walkable areas, and that process may well accelerate (with lots of potential for large office projects sitting right there in the North Shore, Strip District, Lower Hill, Hazelwood LTV, Penn Avenue/Busway corridor, and so on).
In short, as with so many other things, I see Pittsburgh being on the same track as many other Northeastern cities, just at an approximately 20-25 year lag. Maybe it would be better if it could just skip over some of those steps, but if there is a market here for more suburban office space (and some businesses still prefer it for various reasons), then I don't think we can entirely deny that market what it wants.
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Also... the inclusion of Atlanta of all places on that list really makes me question the methodology.
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This seems to reflect something I have heard about Atlanta before, which is that its office space is more concentrated than it is often given credit for. It is more its residential space that has become so sprawly.