Saturday, December 03, 2005

Downtown living is on the rise in Pittsburgh. That was one of the conclusions presented Friday by a group of students from the Heinz School for Public Policy and Management at Carnegie Mellon University (CMU). The analysis was done for the Pittsburgh Downtown Partnership.

The students did a cost/benefits analysis for living downtown compared with other neighborhoods.The report found that rents in downtown cost considerably more than in Mount Lebanon or Shadyside (presumably they chose these neighborhoods because of the demographic being targeted for downtown living).

Likewise the cost of buying a condo downtown was more than those two neighborhoods, plus Sewickley. Compared with single-family homes in those three neighborhoods, those willing to downsize might find downtown living attractive. (It seems some comparison of perception between downtown and these other neighborhoods should also be made. Actual comparisons in quantitative data on crime statistics, existing amenities etc. would be useful).

The numbers of folks looking to live downtown are apparently on the rise. The students concluded there would be 1006 more prospective tenants than units by Fall of 2006. It was also estimated downtown will measure a 16.5 percent growth rate in 2006 from 2000.

Held at the Gulf Tower, the forum also allowed downtown residents to listen to the conclusions and respond. One resident complained about the noise and odor from buses. Extending hours of stores and coffee shops seemed to be on everyone's mind and adding a grocery far out ranked other amenities young professionals found important to have downtown. (young professionals were one of two groups likely to see downtown as an attractive option, empty nesters the other).

One audience member felt the coffee shops would only be convinced to open later when the demand was there. As when people moved to the suburbs, it took some time for the stores to follow.

It is clear that downtown living desireability is on the increase, and the products being created, at least in terms of for sale downtown condos, is products that are in demand. Some of the presumptions about downtown living will sure to be challenged in the coming years, however. It is my contention that while more people are seeking out an urban lifestyle today, perhaps being close to work, a prime downtown attraction cited, will not hold true. I think that downtown living is becoming attractive for other reasons.

First, the condo lifestyle in general is again attractive. Small households, one or two people, want an investment with a standardized value. They want minimal upkeep and a customizable space. An increasingly mobile population wants a product that will not take time out of their busy lives and yet provide enough latitutude to make the space their own. Second, downtown office buildings are being converted into condominiums for economic reasons rather than social ones.

This is not only true of Pittsburgh, but of other downtowns. New condo buildings (of considerable height) are also being built in downtown areas. Economically this is likely because the price per square foot of living space has surpassed the price per square foot of office space (at least in these tall, slender buildings). It's also because of changes in the type of office space in demand. New offices are being built in outlying areas (including on the North and South shores and in like places in other cities). The new office buildings have much larger floorplans than the old downtown buildings.

Time will tell, but what we are probably seeing now is a change in downtown from an office center to a mixed-use center and eventually weighed heavily toward a residential center. It's too early to see how far into the future, and thus how far to the a complete residential center this trend will take us.

It may not seem realtistic today to think that downtown could be primarily a residential neighborhood. There will always be some offices of course, just the way there are a few apartments near Ross Park Mall. Today we may make the mistake of assuming that the residential trend will stop at some point, what point is unspecified, perhaps 25 percent. It may not stop, however, or may stop at 75 or 80 percent.

When I say "primarily residential," I mean homes and supportive retail services and cultural attractions. Cultural attractions will not be replaced because they are not a market-driven entity the way homes and offices are.

Today we know the concept of "edge cities," and the diminishing importance of a downtown as an office and retail center. I suspect there will always be an importance to having a "center," and downtown will always be that center.

The infrastructure needed for a residential center is much different than the infrastructure needed for an office center. As an office center, the workers commute, primarily by driving, from the suburbs. As a residential center, a larger portion of those living downtown won't have cars. They must be in walking-distance of amenities and have an efficient transportation system in order to get to work.

In regards to amenities, while it is important, as suggested, for existing amenities to have extended hours, the existing amenities aren’t built to cater to residents. As an example, compare the Starbucks on McKnight and Siebert with the one on Penn and Sixth. The suburban location is large enough to accommodate small meetings and allow residents who may spend the day alone at home, to linger. The downtown location is more of a “get your coffee and go” spot than a “third-place.”

The retail stores face similar barriers. I’m more likely to shop at Target and Walgreens for the things I need for everyday life than Kauman’s/Macy’s or Brooks Brothers. The types of stores downtown today are built to accommodate suburban destination shoppers or office workers.

I would also like to briefly compare “downtown” Pittsburgh with Center-City Philadelphia or Baltimore. While the primary type of housing in Downtown Pittsburgh is the condo or apartment, other successful downtowns include many different types of housing, including the row house. By expanding the definition of “downtown” to include places like East Allegheny, we can provide this type of housing in an area that is walkable and convenient—the hallmarks of downtown living.

To the students who undertook this project, good work. It was an engaging presentation that’s sure to help continued growth of Pittsburgh’s downtown as a place for living.

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