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Coronavirus causing vacancies in Downtown Pittsburgh that could last well past pandemic

PITTSBURGH — The coronavirus pandemic is having a major impact on how people work, which could have long term consequences on Pittsburgh.

More people are working from home and will do so for the foreseeable future.

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Companies like Google and Uber, which employ hundreds of people in Pittsburgh, are allowing employees to work virtually through the summer of 2021.

Commercial real estate expert Jason Stewart estimates around 18% of downtown office space is now vacant, around the same level as the great recession more than a decade ago. But he sees differences in the two situations.

“Clearly, the uncertainty is pushing things to slow down a little bit. But we are doing well and we have signed new long-term leases with tenants in downtown Pittsburgh,” said Stewart, the managing director of JLL’s leasing team.

One of those long-term leases is with Wealth Enhancement Group, which currently occupies space on Stanwix Street. The group is in the process of renovating that new space which will be ready in December.

Senior Vice President Paul Brahim is hoping it will be safe to bring his staff back to the office by then.

“We work in teams. I think human beings were built to spend time together,” Brahim said.

But changes forced by the pandemic could lead to a long-term strategy for many businesses, one that allows employees to work remotely.

“I think it’s a permanent change and I welcome that. I think it’s an expectation people are now going to have,” said Ray Jones, a professor at Pitt’s Katz School of Business.

Jones said more companies have been moving in this direction over the last several years.

He believes the pandemic will only accelerate the trend.

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“The simple convenience and cost savings of not having to have a physical office is going to make this a viable work strategy.”

But others like Stewart are invested in a busier future for downtown Pittsburgh. Post-pandemic, he’s confident businesses and their need for office space will rebound quickly.

“We’re predicting more of a V shape recovery than a U shape recovery. The companies that are being impacted by the pandemic right now weren’t in financial distress to begin with,” Stewart said.

Wealth Enhancement Group falls into that category.

Brahim is eager to get his employees back in a new office space. He doesn’t know exactly when that will be, but he sees having a downtown presence as a smart investment.

“We’ll figure this out, it’s what we do,” Brahim said. “We’ll get back to life as normal. We’re designing the office with that long-term normalized perspective in mind.”