Real estate private equity is increasing in popularity as an alternative asset class. Pittsburgh is rapidly becoming one of the world’s best locations for long-term real estate investment. Provided is an overview of both — the Pittsburgh Real estate market and the opportunities that abound specifically in private equity. Attached is our white paper Investing in Pittsburgh Real Estate: Private Equity
Pittsburgh Real Estate: Economic Strength & Future Growth
The Grosvenor Group recently ranked Pittsburgh as the fifth most resilient city in the world. The study ranked cities outside of the traditional real estate evaluation metrics of projected vacancy rates and rental growth estimates. Cities were ranked based on climate, environment, resources, infrastructure, community, governance, planning systems, institutions, and technical, learning and funding structures.
CBRE, a local real estate firm, noted, “Many cities experienced a weak commercial real estate market during the recession with weak demand, layoffs, rising vacancies, falling rental rates and lower values. We were a little more recession-proof of PNC’s growth, strong meds and education, and the growing demand in the oil and gas industry.” Pittsburgh’s proven economic stability during the recession should help ease the worries of investors.
US News and World Report recently published a study recognizing that Pittsburgh ranked a 79% on the value index, representing that Pittsburgh has a lower cost of living than that of similarly sized metro areas when comparing housing costs to median household income.
Private Equity Opportunity
When researching for a location that will provide high returns on real estate, it is key to examine the core companies that build the backbone of the region. Pittsburgh has diverse industries ranging from top-notch financial services to leading national healthcare providers. Some examples of such firms are BNY Mellon, PNC, UPMC, and Dick’s Sporting Goods; all companies that are at the forefront of their specific business sectors. As of June 2017, Pittsburgh was home to six companies on the Fortune 500 list, with much more on the verge of breaking into the prestigious group.
To continue, please feel free to download our white paper — Investing in Pittsburgh Real Estate: Private Equity