Pittsburgh Downtown Partnership officials believe some of Downtown’s office buildings are ripe for conversion into apartments to aid in the city’s growth.
Here’s why the subject is at top of mind for one of Pittsburgh’s most prominent development organizations.
Why convert Downtown Pittsburgh office space to housing?
A recent study by the Pittsburgh Downtown Partnership indicated that converting available office space could help drive Pittsburgh population growth.
Since 2000, Pittsburgh’s population has declined from around 334,600 to about 303,200 in 2023, according to U.S. Census data. Declining populations lead to declining tax revenue for governing entities of any size. Despite longer-term decline, the city’s population has incrementally risen overall by about 1,400 people since 2020.
If the latter trend is expected to continue, housing could eventually become a factor.
According to the Pittsburgh Downtown Partnership, 91% of the Golden Triangle’s rentable property occupied as of the last quarter of 2024.
Additionally, lack of housing potentially constricting population growth can stagnate business growth. Currently, per the study, there are more large retail spaces sitting idle in Downtown than small ones. The PDP projects that bringing in more residents will attract major retailers to those lots, further shepherding growth.
How much of Pittsburgh’s Downtown office space can be converted?
According to the study, discussed this week as part of PDP’s three-year plan to reshaping Pittsburgh’s Golden Triangle, over 66% of Downtown’s real estate is office space. That’s a number PDP officials hope to drop to 45%.
They say about 21% of all real estate in Downtown — roughly 7.9 million square feet of property — is made up of office space that’s eligible for conversion to residential.
Additionally, three-quarters of a sample of older but “well-maintained” Class B properties and also Class C properties were characterized as “easily converted.”
PDP officials estimate that if all vacant office space was converted to residential space, Downtown’s population could readily jump by more than 12,000 people.
Are there any major projects already planned?
Pennsylvania Gov. Josh Shapiro’s $600 million plan to breathe new life into Downtown includes converting the 44-story Gulf Tower into a luxury hotel and residences.
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What factors complicate converting Downtown Pittsburgh office space?
The Golden Triangle will have to strike a balance between converting empty work spaces into apartments without losing too many offices.
In the last quarter of 2024, the study also revealed the number of vacant Class A office space in Downtown spiked as companies declined to renew leases, with more employers moving from Downtown to the North Shore and Strip District.
What are the next steps of PDP’s strategic plan?
The PDP will continue to highlight conversion, as well as other aspects of its strategic vision — developed with input from over 100 stakeholders, including developers, government officials, nonprofits and corporate leaders — via a community engagement push spanning more than 500 annual events as well as quarterly updates.
“We know that we have to work collectively to create a more diverse and resilient neighborhood through the encouragement of office conversions, creating more retail and street front activation experiences,” PDP President and CEO Jeremy Waldrup said. “This is going to require the work of us all.”
First Published: January 31, 2025, 1:11 p.m.
Updated: February 3, 2025, 1:20 p.m.
