Retail development on Pittsburgh's South Side could lead to residential growth

Pittsburgh Business Times - by Tracy Carbasho

Commercial real estate developers say the brisk retail activity on the South Side has primed the area to be a hotspot of residential growth.

“The South Side has become a desirable residential neighborhood, attracting young people and upscale professionals,” said Peter Sukernek, general manager and vice president of Howard Hanna Commercial Real Estate Services, Downtown. “It offers a combination of everything you want in a neighborhood, including employment opportunities, retail and entertainment.”

Sukernek said the South Side could follow the same trend that occurred in the Strip District, where many old warehouses have been converted to loft apartments. In particular, he believes transforming vacant buildings into avant-garde living accommodations to meet the needs of today’s busy professionals could be a profitable venture.

“There is a high occupancy rate on the South Side in commercial buildings and older industrial buildings. A lot of the bigger buildings have been purchased and torn down,” he said. “The trick is to find a building on property that is not large enough to be torn down and built upon, but something that can be renovated. Banks are interested in financing projects like this.”