east liberty station: realizing the potential - City of Pittsburgh

successful strategy has converted over
150,000 square feet of vacant space for
use as live/work space since the late 1990s.
The core of East Liberty lies at the heart
of several successful commercial districts.
Situated at the intersection of the various
galleries along Penn Avenue and the
entertainment district that has extended
itself across the South Highland Avenue
bridge, the central business district’s
strategic location provides an opportunity
to capitalize on 24-hour activity. In
addition, the influence of successful retail
along the two other Shadyside corridors,
Eastside and Bakery Square will continue to
drive demand in the study area.
Target in relation to the core of East Liberty - Photo: Pittsburgh Urban Redevelopment Authority
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Currently, the hotel supply is limited to the
110 rooms within Bakery Square. Nearby
institutions drive much of the demand
for hotel spaces given the lack rooms
throughout the greater East End of the
City. Additional hotel development can also
be supported by any potential new larger
corporate office tenants within the study
area.
Office: The study area is conveniently
located in close proximity to an abundance
of educational institutions and other
medical facilities. More than 350,000
people reside within 5 miles of the
study area and three of the region’s top
employers are located nearby – UPMC
Hospitals, the University of Pittsburgh and
Carnegie Mellon University. Together they
account for 270,000 employees and 41,500
students within a 5 mile radius. Within
the central business district, the largest
local employer, Novum Pharmaceuticals,
operates a center providing clinical
research, data management, statistical and
reporting services to the pharmaceutical
and related industries
According to Emerging Trends in Real
Estate 2011 published by the Urban Land
Institute, Class A office buildings in primary
24-hour markets remain highly coveted by
tenants. Developers will shift focus more
on infill locations near vibrant downtown
cores and urban districts. The demand for
‘green’ space will only continue to grow.
Sustainable building concepts will become
standard in next-generation projects and
that many existing buildings will need
to increase efficiencies and retrofit new
systems in order to compete effectively.
The institutions’ expansion toward East
Liberty has been prompted by a shortage
of Class A office space in Oakland, the
region’s primary institutional district.
Oakland had a zero vacancy rate for the
fourth quarter of 2009, when the City’s
overall commercial real estate market was
ranked as the healthiest in the nation by
Moody’s Investor Services. It is anticipated
spill over from the Oakland office market
can continue to drive the market for Class
A office within the study area given the
proximity and public transit connection.
Bakery Square represents the only
significant new Class A office development
within the study area in the past decade
plus.
Specifically, medical office continues to
lead niche office type categories. UPMC
Shadyside and the Hillman Cancer Center