Three PNC Plaza

Construction has already broken ground on Three PNC Plaza. This is the first skyscraper in Pittsburgh since Dominion Tower in 1987. Reed Smith is going to occupy much of the 325,000 square feet of office space. In addition to the office space, the tower will have a 185 hotel and a 10 story, 30 unit condominium complex. Again, as discussed in a previous post, this will be high end multifamily living, which is the cornerstone of new downtown housing development.

Office space in general has done well in recent years. Occupancy rates are in the mid-80s generally, with the high end space in Oakland and downtown being the most desirable. Office space, however, hasn't been what developers would consider tight in recent memory. While some low-end, aged office space has been taken off the market in conversion to apartments or condos, this building will easily add more than that amount to the market. Additionally, Reed Smith will not be a new law firm entering the market, but rather an existing tenant of a building on 6th Avenue. That seems to be the disappointing aspect of this project. It is not being built primarily because of market demand.