For years, the Duquesne Light Company has had its name scrawled across the top of the 16-story Chamber of Commerce Building Downtown.
But that could soon be changing.
The utility is currently considering a move from its longtime headquarters at 411 Seventh Ave., with one potential landing spot just a few blocks away, according to real estate sources.
In a statement, Duquesne Light acknowledged that it has been scouting potential alternatives.
“In recent months, Duquesne Light Company (DLC) has been evaluating our long-term workspace needs and reviewing various options for a headquarters location in and around Downtown Pittsburgh.
“As we make progress in our search, we’re looking forward to securing a home base that will give our employees a safe, vibrant and innovative work environment while enabling us to remain a trusted partner as part of our community,” the statement read.
Duquesne Light now leases about 132,000 square feet in the Chamber of Commerce Building. Like many tenants in the post-pandemic environment where hybrid work has become common, it is planning to downsize to about 100,000 square feet.
Hollie Geitner, a Duquesne Light spokeswoman, said the utility has been “actively looking at a variety of locations” in its search for a new space. She did not mention any specific properties.
However, local real estate sources indicated that potential targets include U.S. Steel Tower just blocks away on Grant Street, and Nova Place on the North Side. Another source said that remaining at the Chamber of Commerce Building also could be an option.
Ms. Geitner said that Duquesne Light “has some floor leases” in the building expiring in the near future, but was not more specific. Another portion of the lease apparently runs until 2029.
The company has more than 600 employees based at the location. As for whether it plans to move all of them to a new property should it go that route, Ms. Geitner said only that “our future plans are still in development.”
Patrick Sentner, an executive vice president at the Colliers Pittsburgh real estate firm who is representing Duquesne Light in its search, declined comment.
U.S. Steel Tower would have space available to accommodate the utility. As of March, about 80% of its 2.3 million square feet was occupied, according to Mark Karasick, a general partner.
That would leave about 460,000 square feet still to be leased in the 64-story skyscraper, Pittsburgh’s tallest. In March, Mr Karasick said owner 600 GS Prop LP was close to deals with tenants for another 200,000 square feet, though nothing has been announced since then.
In recent years, the ownership, which bought the property in 2005, has spent $7 million on building amenities, including a tenant lounge and fitness center, in an effort to attract more tenants.
Jeremy Kronman, a vice chairman at the CBRE real estate firm who leases space at U.S. Steel Tower, had no comment when asked about a possible Duquesne Light relocation to the building.
The 1.2-million-square-foot Nova Place, a 32-acre redevelopment built from the ruins of the Allegheny Center Mall, has as much as 212,135 square feet of office space available throughout the complex, plus another 42,492 square feet accessible through sublease, according to the Jones Lang LaSalle real estate firm.
Jeremy Leventhal, managing partner of Faros Properties, the owner of the complex, said he has the ability to put together a 100,000-square-foot package for a tenant interested in moving in.
Mr. Leventhal would not say whether Faros is negotiating with Duquesne Light. But he added it’s always looking to fill vacant space.
“We are out there chasing tenants,” he said. “I’m chasing all sorts of tenants.”
New York-based Faros purchased the property in 2015 and has since transformed it into a tech hub that includes a number of robotics, wet lab, data center, and telecommunications companies after spending millions on renovations and amenities.
The possible Duquesne Light relocation comes at a time when Downtown has been experiencing mixed results in trying to retain companies amid high vacancy rates and well publicized concerns about crime, safety, homelessness, open drug dealing, and other issues.
Huntington Bank recently announced that it was moving its regional headquarters to the Vision on Fifteenth office building in the Strip District from the Grant Building Downtown. The Edgar Snyder and Associates law firm is relocating to the Cascade building on the North Shore from U.S. Steel Tower.
But other firms have chosen to stay in the Golden Triangle. Another law firm, Robert Peirce & Associates, will be moving early next year to the Frick Building from Gulf Tower, which is being emptied out in advance of a proposed residential and hotel conversion.
In addition, the Fox Rothschild law firm will be leaving BNY Mellon Center for 6 PPG Place either next year or in 2026.
In a recent report, JLL stated that Downtown could learn from the Strip in attracting and retaining tenants by creating more residential spaces and additional dining, retail, and entertainment options,
At the same time, the most competitive office buildings in the central business district are those that have invested in first-rate amenities and work environments, it noted. In the past, JLL has stated that older obsolete buildings that can’t be converted to residential or other uses could be facing demolition.
Another JLL report earlier this year found that the Golden Triangle had lost a net of nine tenants since 2020, with the majority relocating to fringe neighborhoods like the Strip or North Shore.
First Published: August 26, 2024, 9:30 a.m.
Updated: August 26, 2024, 8:15 p.m.