© JLL 2017 1

Full circle: PittsburghAn in-depth look at how residential demand, corporate

growth, and development activity sparked the

resurgence of downtown Pittsburgh

© JLL 2017 2

Pittsburgh’s resurgence

gains national attentionThe economy in downtown Pittsburgh is gaining momentum,

driven by growth in multiple sectors. Companies like Uber

and Amazon are taking advantage of the highly technical

workforce Carnegie Mellon University and the University of

Pittsburgh continue to provide. While the engineering and

robotics industries continue to grow in Pittsburgh, the

announcement of Shell’s cracker plant in Beaver County has

inspired a new sense of optimism in the energy sector

across the entire region.

As Pittsburgh’s future potential is gaining more recognition,

the investments flowing into downtown are changing the

landscape. A number of buildings are currently being

redeveloped by outside investors, while several new

developments are close to breaking ground. The excitement

and energy around downtown is tangible and with over 4,000

residential units currently in the construction pipeline,

population is expected to grow in the coming years.

Downtown Pittsburgh

2© JLL 2017

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Downtown Pittsburgh by the numbers

37%Percent Millennials

134,000Total employment

70 Office tenants

2016 Business attraction and retention

111# of investment projects (2012-planned)

$4.3BTotal investment

87%Private investment

4.8Square miles

33,000Residential population

16.6%Population growth since 2000

3© JLL 2017

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Downtown Pittsburgh

1,500,000

1,900,000

2,300,000

2,700,000

20,000

25,000

30,000

35,000

2000 2010 2017

Population growth

Current downtown population estimates show

a considerable increase since 2010 due to

substantial residential development.

2.4M2.3M

2.7M

28.3K27.4K

33.0K

Demographics

21%

37%

16%

4%

Generation Z and Millennials make up over

half of the population downtown, fueling

Pittsburgh’s new dynamic economy.

Generation Z (0-19)

Millennials (20-36)

Generation X (37-52)

Baby Boomers (53-71)

The Silent Generation (72+)

2017 downtown population by age

8,000

12,000

16,000

2000 2010 2017

Residential development

With an additional 4,000 apartment units

in the pipeline, the downtown residential

market is positioned for rapid growth.

10.8K

12.3K

15.8K

People

Downtown population Metro population Downtown housing units

© JLL 2017 5

Largest employers

The largest private employers in downtown

Pittsburgh span a broad range of industries,

illustrating the region’s diverse economy.

UPMC

HighmarkHealth

PNC Financial

BNY Mellon

US Steel

46,500

20,900

11,400

7,000

4,200

PPG

Alcoa

UnitedHealth Group

Rivers Casino

EDMC

2,300

1,700

1,600

1,500

1,500

Business attraction & retention

In 2016, urban demand remained strong as

nearly 70 office tenants made a commitment

downtown. Below are several of the largest

commitments.

Amazon

Brickstreet Insurance

Frost Brown Todd

Industrious

Ariba (SAP)

Carmeuse

Confluence

EDMC

Federated Investors

Highmark

Marshall Dennehey

Morgan Lewis

Peoples Natural Gas

Seubert & Associates

Tucker Arensberg

UnitedHealth Group

UPMC

US Steel

Retention or expansion (1,300,000+ s.f.)

Attraction (170,000+ s.f.)

Employment by industry

Professional and business services

Hospitality, leisure and retail

Government

Construction, manufacturing and transportation

Downtown employment by industry

Information

Education and healthcare

Other

Downtown Pittsburgh has a thriving 21st

century economy with significant employment

in the business and technology industries.

36%

23%

13%

9%

7%

10%

Business

Netflix

Oculus

Uber

Downtown Pittsburgh

© JLL 2017 6

23%

23%

54%

Investment by project status

Investment activity has surged over the last

five years and many large planned projects

have yet to begin construction.

Completed (2012-16)

Under construction

Planned

$1.0B

$1.0B

$2.3B

43

29

39

Status Investment

# of

projects

Investment by funding typePrivate funding accounts for the majority

of investment spending over the past five

years, as outside investors have noticed

Pittsburgh’s diverse economic potential.

87%

13%

Private investment dollars

Public investment dollars

$0.0

$0.7

$1.4

$2.1

Education,infrastructure,

public use

Entertainment,retail

Hotel Office Residential

Investment by property type

Office projects have received the largest share

of investment dollars, driven by large private

developments.

37

projects

20

projects

36

projects

9

projects9

projects

($B)

Investment

Downtown Pittsburgh

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7 Pitt Building Redevelopment

8 Pittsburgh Stadium Garage

9 Riverfront Landing Apartments

10 Pittsburgher Building

11 Town Place Development

1 3 Crossings: The Hub

2 Cambria Suites at PPG Arena

3 City-County Building Renovations

4 Heinz Lofts: Service Building

5 Nova Place Renovation

6 Penn Rose Redevelopment

1 20 Stanwix

2 3 Crossings: Riverfront West

3 319 Third Avenue

4 525 William Penn Renovations

5 Allegheny Building Improvements

6 Allegheny County Courthouse

7 Civic Arena Site

8 Continental Residential Project

9 Heinz Research Apartments

10 Macy’s Redevelopment

11 Northbank Hotel

12 One Oxford Redevelopment

13 Penn Avenue Plaza Restoration

14 Post Gazette Redevelopment

15 PPG Glass Warehouse

16 Produce Terminal Development

17 Rivers Casino Hotel

18 Steelworkers Building Renovation

19 The Highline

11 Monongahela Incline

12 Point Park Center for Media

13 PPG Ice Rink Expansion

14 ALCOA Building Conversion

15 The Tower at PNC Plaza

16 The Yards at 3 Crossings

17 JLL Center / Hilton Garden Inn

18 Union on 5th

19 Union Trust Improvements

20 Verizon Building Restoration

1 3 Crossings: 2501 Smallman

2 3 Crossings: 2555 Smallman

3 907/909 Penn Avenue

4 Allegheny Health Department HQ

5 Benedum Center Expansion

6 Clark Building

7 Embassy Suites & Oliver Building

8 Flats on Fifth

9 Homewood Suites

10 Liberty Center Improvements

Investment map

Significant projects under construction

Significant projects completed in 2015-16

Notable proposed projects

Completed in 2015-16 Under construction Proposed

Downtown Pittsburgh

© JLL 2017 8

Contact

Tobiah Bilski

Research Analyst, GIS

+1 412 208 1426

tobiah.bilski@am.jll.com

www.jll.com/research

www.jll.com/pittsburgh

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