PITTSBURGH | Development Rundown II

[Private Dick]

Originally Posted by Wave

In the consulting industry it is common knowledge that the less sophisticated & trained a workforce is the easier it is to move a business unit across the country or overseas. Moving a call center from Peoria to Bangalore is relatively simple. Conversely, the more skilled and specialized the harder it is. By the time you get to "uber" specialized professions, it becomes virtually impossible without seriously damaging your business unit.

The engineers recruited by Uber are at the tippy top of the food chain not just in engineering but almost as specialized as any unit in any industry. And we are talking about forty professionals (and growing). Thus to move this business unit ANYWHERE would be virtually impossible. It would be much harder, for instance, than even moving the entire Heart transplant unit at UPMC to Houston, which would never happen. People have lives, families, schools and relationships and these folks are virtually irreplaceable, you would need the vast majority to agree to move. And for what? What benefit would Uber get from further risking attrition by now exposing these folks to the opportunities in Silicon Valley where recruiting top talent is as cut throat as it gets. Just not happening.

This is true, and that's why Uber came to Pittsburgh, rather than attempting to lure a large number of the best away.

I don't know that anyone on here thinks that Uber will try to move 40 robotics engineers away from Pittsburgh. The perceived threat is more that Uber takes the 40 engineers from CMU, uses them for a few years to get what the company needs out of them while paying them very well, and then pulls up stakes on its Pittsburgh operation. At least that's how I was interpreting the sentiment...

That is a realistic scenario. Moving 40 highly-skilled engineers most likely is not.

Either way, I think having Uber working on autonomous vehicles in Pittsburgh is a major development.

[BrianTH]

My guess is the robotic car research program in general terms is not going to be over for a long period of time. Even once we get to the point that financially-viable cars are driving themselves, very likely there will be an intense period of competition and innovation to offer cars and related services better and cheaper until the industry matures--and that could take decades.

So I don't know what exactly Uber specifically has planned or indeed if it will survive, but I think the serious players in the field are likely going to have prepared long term ongoing research plans.

[BrianTH]

By the way, although expected, that Bakery Living announcement is big news. What it confirms is that the market has continued to absorb the new units coming through the pipeline, such that Walnut is confident in continuing to put more projects into the pipeline.

The 2020 Census is going to be interesting. There are some parts of the City that are going to have experienced pretty explosive population growth (others will likely continue to experience natural decline, so the net effect remains uncertain).

[BrianTH]

The Penn Avenue bike lane was pretty well-used in May. I suspect it will continue to trend up (subject to seasonable variation), and in fact I wonder if we will be able to detect a bike-share effect:

http://www.post-gazette.com/news/transpo...24-000-trips-in-May/stories/201506040199

Of course as usual, the comment section is ridiculous--although I do see more and more vigorous push back against the anti-bike Cultural Warriors claiming to speak for the Moral Majority.

[daviderik]

Speaking of Uber...
Uber gets approval to start picking up passengers at Pittsburgh International Airport

The Allegheny County Airport Authority on Tuesday announced a new policy that will allow companies like Uber, Lyft and Yellow Z to legally operate on airport property.
Under the new policy, Uber Technologies Inc. is the first to obtain a permit to pick up passengers at the airport.

http://www.bizjournals.com/pittsburgh/ne...start-picking-up-passengers.html?ana=fbk
Great news. Obviously setting up shop in the city has it's influences. Whatever it takes.
I also saw another article about the city considering loosening it's restrictions on food trucks. Which would be great for places like mellon square. Right now food trucks can't operate in front of parking meters or restuarants selling similar food. And they can not stay parked for more that 30 mins. (It takes 30 mins to cook the food.) They still need the votes in the council to get it done.

[Austinlee]

Originally Posted by Wave

In the consulting industry it is common knowledge that the less sophisticated & trained a workforce is the easier it is to move a business unit across the country or overseas. Moving a call center from Peoria to Bangalore is relatively simple. Conversely, the more skilled and specialized the harder it is. By the time you get to "uber" specialized professions, it becomes virtually impossible without seriously damaging your business unit.

The engineers recruited by Uber are at the tippy top of the food chain not just in engineering but almost as specialized as any unit in any industry. And we are talking about forty professionals (and growing). Thus to move this business unit ANYWHERE would be virtually impossible. It would be much harder, for instance, than even moving the entire Heart transplant unit at UPMC to Houston, which would never happen. People have lives, families, schools and relationships and these folks are virtually irreplaceable, you would need the vast majority to agree to move. And for what? What benefit would Uber get from further risking attrition by now exposing these folks to the opportunities in Silicon Valley where recruiting top talent is as cut throat as it gets. Just not happening.

Hmm. Great explanation.

[chiaroscuro]

Originally Posted by Wave

What benefit would Uber get from further risking attrition by now exposing these folks to the opportunities in Silicon Valley where recruiting top talent is as cut throat as it gets.

I have no clue what their intentions are or what will eventually happen, but this was the first thing I thought. It seems like they are moving to an area (Pittsburgh) with rich talent and with very little local competition.

[BrianTH]

Anti-density NIMBYs are coming out against the Fort Willow project, many citing parking concerns:

http://www.bizjournals.com/pittsburgh/ne...nd-scale-of-191-unit-apartment-plan.html

Of course if residents are having trouble finding parking, the right answer is a residential permit system, not limiting development.

Fortunately it looks like the powers that be are supporting the project, but hopefully there is no downscaling.

[BrianTH]

Speaking of what Walnut thinks of demand:

http://www.bizjournals.com/pittsburgh/ne...capital-remains-bullish-on-east-end.html

With more than 1,000 units under development in Pittsburgh, Walnut Capital Partners' Gregg Perelman said there's plenty of pent up demand from people looking to move into the city. "We get inquiries every day," he said. "We just don't have enough products." . . . Perelman said Bakery Living Orange, which is the first completed residential development on the 20-acre parcel, is fully leased and they have a waiting list of prospective tenants. Walnut Capital expects to begin leasing Bakery Blue, the second Bakery Living development, beginning in January. Prices range from $1,200 per month for a micro studio apartment to $3,000 for a two-bedroom. Also in the works is a town house project known as Bakery Village, which Perelman said he hopes to break ground on soon. The team from Walnut Capital is expected to present the project to the Pittsburgh Planning Commission in the following weeks. Of the 51 units that are planned, Perelman said he expects six to 12 to be ready for sale next spring. The cost of the homes are expected to be in the mid- to high $400,000 range depending on customization.

[BrianTH]

A lot of speculation about what the sale of the Penguins might mean for the Lower Hill development site:

http://triblive.com/sports/penguins/8503363-74/penguins-development-arena#axzz3c8wGG4fA
http://www.post-gazette.com/sports/pengu...ast-put-up-for-sale/stories/201506050225

I say: couldn't hurt, given their crappy performance so far. In fact, in an ideal world, someone buys the team in part because they specifically want those rights, with the hope they will use them a lot more ambitiously.

[RespectCondor]

Originally Posted by BrianTH

Anti-density NIMBYs are coming out against the Fort Willow project, many citing parking concerns:

http://www.bizjournals.com/pittsburgh/ne...nd-scale-of-191-unit-apartment-plan.html

Of course if residents are having trouble finding parking, the right answer is a residential permit system, not limiting development.

Fortunately it looks like the powers that be are supporting the project, but hopefully there is no downscaling.

I find the "wheres everyone going to park!!!" tactic to be the most obnoxious argument against increased density. Just because you use your car to get everywhere doesn't mean that all of the new residents are going to live their lives the same way. If they want to use the development as a way to leverage better bus service great. but I have a hard time forming any sympathy for people who argue against a needed development because they are afraid it might take them longer to find parking on a street.

[Gilamonster]

Heavy refurb work on the YMCA building :

[pyrohy]

Originally Posted by Gilamonster

Heavy refurb work on the YMCA building :

thats the old salvation army building downtown soon to be hotel

http://www.bizjournals.com/pittsburgh/bl...0/distrikt-hotel-coming-to-downtown.html

[daviderik]

http://www.post-gazette.com/business/hea...-such-a-bright-idea/stories/201506060019
Pittsburgh’s North Siders say big AGH signs not such a bright idea
Allegheny Health Network proposes to install three identifying signs on its flagship hospital in the Central North Side, signs that would be the second- and third-largest in the city if approved by the Zoning Board of Adjustment.

[BrianTH]

Cool article about some local train stations. I really hope some of the ones currently in danger can find patrons and reuses:

http://triblive.com/aande/architecture/8450846-74/station-coraopolis-train#axzz3cLwsifXK

[BrianTH]

The vacant Washington Education Center building in Lawrenceville may (finally) become a 90 room hotel:

http://www.bizjournals.com/pittsburgh/bl...ying-lawrenceville-school-for-hotel.html

Washington Education Center by Joseph, on Flickr

As noted in the article, there have been a couple false starts on this project in the past.

I have an odd affection for early 20th century institutional buildings like this and the Salvation Army building, and love to see them getting new life as public amenities.

[eschaton]

My wife (who, as I said before, works for Rothschild Doyno) told me yesterday a major public announcement regarding the Garden (Theatre) block is "imminent."

[Lobick]

Originally Posted by eschaton

My wife (who, as I said before, works for Rothschild Doyno) told me yesterday a major public announcement regarding the Garden (Theatre) block is "imminent."

Given their work on the Federal Hill project, I'm certainly intrigued (in a good way).

The proposed scope of the AGH signage has me less so.

[photoLith]

Glad to see that lville school finally might see life, it better since they tore down a beautiful 1890s church next door last year for a tiny parking lot that for sure doesn't justify losing historic buildings over.

[daviderik]

Originally Posted by BrianTH

The vacant Washington Education Center building in Lawrenceville may (finally) become a 90 room hotel:

Residential would be a better fit for this gem. But I'm happy they are going ahead on this project.