Posted Oct 3, 2015, 12:24 AM
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Chillin' in The Burgh
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Join Date: Nov 2004
Location: Spring Hill, Pittsburgh
Posts: 12,488
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I don't think anyone posted this interesting article from about 1 month ago. This is a topic that endlessly interests me.
Tech industry driving office growth in Oakland and beyond
September 4, 2015 12:00 AM
http://www.post-gazette.com/business/dev...ith-Oakland-leading/stories/201509040146
By Mark Belko / Pittsburgh Post-Gazette
Quote:
The region’s burgeoning tech industry is helping to fuel office growth in Pittsburgh, with Oakland leading the way.
A new report by the CBRE real estate company found that Oakland had the 16th highest rent growth of any tech submarket in the United States from the 2013 second quarter to this year’s second quarter.
That, in turn, has helped to pump up the office market as a whole, with Pittsburgh recording the 11th highest rent growth in the country over the same period, according to the report, which analyzed the top 30 tech cities in the U.S. and Canada.
It found that rents in Pittsburgh soared by 12.4 percent over that time.
“The fastest growing office-using sector in the country is tech. We’ve definitely been a big benefactor of that,” said Jeffrey Ackerman, managing director of CBRE’s Pittsburgh office.
Such diversity has helped the city to avoid situations like that in Houston, which is experiencing layoffs because of the downturn in the oil and gas industry, he said....
While Oakland has been the hub of high tech with its strong education and healthcare sectors, the market is expanding — with the East End, the Strip District, Lawrenceville, Downtown, the North Side and the South Side all seeing an increase in tech users, CBRE said.
Apple, for example, will be moving its offices from the Robert Mehrabian Collaborative Innovation Center at Carnegie Mellon University to a 52,000-square-foot office building that Oxford Development Co. is erecting in the Strip as part of its Three Crossings project. Google left CMU for Bakery Square in Larimer, where it continues to expand.
Despite the growth, Pittsburgh has yet to crack the top 10 in terms of high tech markets, a list dominated by the likes of the Silicon Valley, San Francisco, Boston, New York, Seattle and Austin.
Mr. Ackerman said “creative partnerships” also are driving growth, specifically mentioning the collaboration between Uber and CMU in creating the Uber Advanced Technologies Center located in the Strip.
“I think we will continue as a second 10. I don’t see us breaking into the top 10. Those markets are experiencing such strong growth,” Mr. Ackerman said....
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As much as I am a Pittsburgh booster, I think it's incredibly important to remind ourselves about our true position in the world. So clearly Pittsburgh is not a "top 10 city" in the country for tech but more like a second tier tech grouping that keep in mind, with CMU being a "New Ivy" often times competes for the same exact top talent - students and faculty - as the best universities in the country. Overall not bad considering Pittsburgh's size, history, geography and small size in a world with so many growing megacities.
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