Pittsburgh – February 2023 Key Take-Aways
- REAL Professionals Network was started during the Great Recession as a way to take advantage of business relationships. (Rick Lackey – REAL Professionals Network)
- There is a lot of uncertainty in the market, particularly regarding interest rates. (Gene Boyer – Burns Scalo Real Estate)
- It’s more cost effective to gather information regarding ESGs at the beginning of a project. (Ray Steeb – Efacility, LLC)
- Private banks have more capacity for creativity, especially during uncertain times. Many clients are considering interest rate swaps on a longer-term basis. (David Weisberg – PNC)
- Private banks may be able to utilize other assets as a short-term bridge in order to put them in a situation where they can go for traditional financing at a later date. (David Weisberg – PNC)
- There was a lot of CPA work during Covid and being well staffed before and after the pandemic has been an asset. (Don Johnston – Grossman Yanak & Ford)
- There is currently a lot of work with historic tax credits. (Don Johnston – Grossman Yanak & Ford)
- Some companies are struggling in regard to cash flow, and it’s important to pay attention to tax opportunities. (Don Johnston – Grossman Yanak & Ford)
- There is a lot of talk about the Employee Retention Credit. CPAs should have been talking with clients about it years ago. Some companies were told they didn’t qualify. Commercials are running telling people they can learn if they qualify with a simple form, but it’s more complex. (Don Johnston – Grossman Yanak & Ford)
- Grossman Yanak & Ford is always hiring and welcomes referrals for new employees. (Don Johnston – Grossman Yanak & Ford)
- If you’re not working with a CPA annually, it’s good to have a CPA do a review every 3 years or so just to make sure you’re not overpaying in taxes. (Don Johnston – Grossman Yanak & Ford)
- Some office tenants have decided not to renew due to hybrid working. They have adapted to accommodate tenants through rent concessions, downsizing within their portfolio, etc. (Angela Gillot – Burns Scalo Real Estate)
- There is a new project called Diamond Ridge with several developers. It’s a mixed-use project, with apartments, office, and some retail. (Angela Gillot – Burns Scalo Real Estate)
- Very busy with apartment buildings in Pittsburgh, West Virginia and Ohio, and a lot of industrial projects. (Chip Desmone – Desmone Architects)
- Desmone Architects is in desperate need of architects, especially in Cleveland. (Chip Desmone – Desmone Architects)
- There have been a lot of public RFPs and they’ve been coming at it with a community development angle. (Chip Desmone – Desmone Architects)
- Working on a 70-unit apartment building in Cleveland that is a church / school conversion. (Chip Desmone – Desmone Architects)
- Large project in Youngstown – 250 apartments with some retail and office. (Chip Desmone – Desmone Architects)
- Wheeling, WV is booming right now with about $140 million in construction happening, including a new cancer center, a new university building and work to streets and sidewalks. Responded to an RFP for 4 abandoned historic buildings, which includes a lot of public funding. (Chip Desmone – Desmone Architects)
- Working on an abandoned church in Cleveland that is a 150-year-old building in a prime area. (Chip Desmone – Desmone Architects)
- Apartments are the hottest commodity, as is warehouse space. Residential development has also been strong. (Carlos Ainsworth – Dollar Bank Commercial Real Estate Lending & Services)
- Interest rates are the elephant in the room and there has been a drop off in new business. Some people are waiting to see what happens in the market. (Carlos Ainsworth – Dollar Bank Commercial Real Estate Lending & Services)
- Lenders are finding ways to get creative and helping clients prepare for a time when rates go back down. (Carlos Ainsworth – Dollar Bank Commercial Real Estate Lending & Services)
- Industrial market is strong, and they have been buying industrial properties around the country. (Michael Mitro – Royal Oak Realty Trust)
- Deal flow has seen a very big slow down, primarily due to interest rates, and have dropped approximately ⅓-¼.
- There is currently a lot of work in construction litigation. (Kelly McGovern – Frost Brown Todd LLC)
- They have combined the Pittsburgh Chamber with Pittsburgh Regional, as they are able to better coordinate efforts. (Jim Futrell – Allegheny Conference on Community Development)
- One of the services offered is economic impact studies, and they are generally cheaper than most private consultants. (Jim Futrell – Allegheny Conference on Community Development)
- Later this month, the regional employment update will be released. (Jim Futrell – Allegheny Conference on Community Development)
- In April, the annual business investment scorecard will be released. (Jim Futrell – Allegheny Conference on Community Development)
- Working on a variety of projects, including a 17-unit project in Charlotte and a project turning an elementary school into assisted living. (Jeremy Tomes – Nuhomes Capital Management)
- Deal flows have been down, but there is land out there and there are opportunities. (Jeremy Tomes – Nuhomes Capital Management)
- They manage McCandless Crossing and are soon to have McCandless Square, which is 20K sq ft of retail and 55 townhomes. (Todd Pifer – AdVenture Development, LLC)
- They have 500 acres in Raleigh, NC which is a big industrial site with their first building on spec. They’ve just started pushing the retail side. (Todd Pifer – AdVenture Development, LLC)
- It’s important to have a banker that you work well with. Even though most things are online, it’s still important to have a personal connection. (Janet Schopp – First National Bank)
- As a smaller bank, they offer some services other banks may not. They do business loans up to $1 million, buy-outs for partners getting in or out, and business purchases, including equipment loans and vehicles. (Janet Schopp – First National Bank)
- Deals and loans are down due to interest rates, but they are finding ways to be creative. (Janet Schopp – First National Bank)
- Focused mainly on industrial. Currently working on a 230K sq ft industrial project. (Dana Grau – Cushman & Wakefield)
- Currently working a lot with historic tax credits and C-PACE. (Greg Boyd – NexTier Bank)
- Seeing a lot of office to multi-family conversion with ground floor retail. (Greg Boyd – NexTier Bank)
- Working on a small Rite Aid portfolio – cap rate of 8%. All have 7-10 years left. (Greg Boyd – NexTier Bank)
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