The theme for the beginning of 2017 (and the end of 2016 for that matter) is confidence. Following the national elections, anticipation of lower taxes and a better business environment have pushed consumer and business confidence to levels not seen since before the housing bubble.
One of the measures of small business confidence - the National Federation of Independent Businesses index - soared in December to its highest level since the end of 2004, when the economy took off after an uneven recovery from the 2001 recession.
PNC Senior Vice President and Chief Economist Stu Hoffman gave an equally confident forecast for 2017 (and 2018 for that matter) when he addressed a crowd of NAIOP Pittsburgh/BOMA members this morning at the William Penn. Hoffman liked the chances of tax cuts, stimulus spending and less regulation during this year and forecast that GDP would respond by growing closer to three percent. Hoffman saw that happening in late 2017 and into 2018 - maybe even a quarter or so of 4% growth - assuming the stimulating measures are enacted during the first months of the Trump Administration.
Project News
Local construction companies have been echoing that sense of confidence, in part because of heightened activity in the fourth quarter. In the healthcare sector, increased spending is expected in 2017 and a few major projects should move ahead. In addition to its $111 million Hamot project, UPMC is expected to announce plans for its South Hills facility (or facilities) imminently. The major expansion at St. Clair Hospital has been delayed slightly but the $60-$80 million project should go out for CM proposals by spring.
Landau Building Co. was selected as contractor for the $4.5 million Mars Library. Pitt awarded the $3.4 million Barco Law Library project to TEDCO Construction. The Murland Associates selected Mascaro Construction as contractor for its proposed 97,000 sq. ft., $15-18 million office at 3422 Forbes Avenue. A couple of $30 million-plus projects that have been kicking around for a while appear to be heading for a competitive hard bid. No schedule has been announced for the Riverfront West building at 3 Crossings or the Campus Advantage apartment project on Forbes Avenue.
BOMA President Tony Young from the Carnegie Library (left) with PNC's Stu Hoffman and NAIOP President Dave Weisberg from BNY Mellon.
Terri O'Mahony was hired as an information systems analyst for the Information Technology Group of PJ Dick Inc. Daniel Stachnick joined PJ Dick as a site safety manager.
Coming Events
Uber: The Pittsburgh Strategy, January 31
NAIOP Pittsburgh is presenting David Richter, VP of strategic initiatives for Uber at a luncheon on Jan. 31 at the Omni William Penn. Richter will detail Uber's plans and how Pittsburgh fits them. RSVP at NAIOPPittsburgh.com or call 412-928-8303.
Tall Timber Group is the publisher of BreakingGround and DEVELOPINGPittsburgh magazines and the Pittsburgh Homebuilding Report, and is a consultant for contractors and designers serving the construction and real estate market. For more information about our services, contact Jeff Burd or call:
Tall Timber Group 506B McKnight Park Dr. Pittsburgh, Pennsylvania 15237 412-366-1857
