Friday, December 30, 2011

Fastest-growing towns in Southwest PA

If you’re looking to purchase real estate in the Greater Pittsburgh region, consider one of these quickly growing areas. Then give me a call and we can discuss your needs.

Where are the fastest-growing municipalities in Southwestern Pennsylvania? They're all over the Greater Pittsburgh region, according to an analysis of U.S. Census Bureau data on population growth between 2000 and 2010.

Townships in Allegheny, Butler and Washington counties made the list.

You can see the top nine municipalities in this slideshow and then check out the Pittsburgh Business Times' Dec. 30, 2011, edition for the entire list or visit the Pittsburgh Business Times' special online section on changing demographics in southwestern Pennsylvania.

You can also look at a searchable list of all the municipalities in southwestern Pennsylvania to see where your township ranks.

(9) California Boro. On the list of southwestern Pennsylvania's fastest-growing municipalities is California Boro, which saw a 29 percent increase in population between 2000 and 2010. California University of Pennsylvania's new Convocation Center is a high-tech center of the campus, which was one of four state-owned colleges/universities to register enrollment increases in 2011.

(8) North Strabane Township. Many people come to North Strabane for the Meadows Racetrack and Casino. But others stay to live, as North Strabane has seen a 33 percent increase in population between 2000 and 2010.

(7) Collier Township. The Allegheny County township is home to Nevillewood and Collier Township Park and war memorial, pictured here. Collier Township has seen a 34 percent increase in population to 7,080 from 2000 to 2010.

(6) Valencia Boro. The Butler County municipality, near Mars and Adams Township, saw a 43 percent increase in population between 2000 and 2010, though at a smaller base. There are only 551 residents in the tiny boro.

(5) Seven Fields Boro. This municipality of 2,887 saw a 45 percent jump in population between 2000 and 2010, U.S. Census data shows.

(4) Pine Township. This Allegheny County municipality had a growth rate of 50 percent between 2000 and 2010, the U.S. Census Bureau said. One of the community's assets is Pine Township Park, shown here.

(3) Ohio Township. This Allegheny County township had 4,757 residents in 2010, up 54 percent from 2000, Census records show. This is the front of the Ohio Township municipal office.

(2) Adams Township. This Butler County municipality is the second fastest-growing in southwestern Pennsylvania, according to U.S. Census Bureau data. It jumped 72 percent to 11,652 residents between 2000 and 2010.

(1) Aleppo Township. The fastest-growing municipality in southwestern Pennsylvania is Aleppo Township in Allegheny County. It grew 84 percent between 2000 and 2010 and in 2010 had 1,916 residents.

Read more http://www.bizjournals.com/pittsburgh/news/2011/12/30/slideshow-fastest-growing-sw-pa-towns.html

Wednesday, December 28, 2011

Pittsburgh organizations to receive share of federal small business funding!




Pittsburgh-region organizations received a portion of $29.2 million in federal funding to boost small businesses in Pennsylvania, the state Department of Community and Economic Development said Wednesday.
Among the 12 organizations given money funded through the Small Business Jobs Act were:
  • Bridgeway Capital will receive $2 million to finance 510 small-business loans in western Pennsylvania.
  • Northside Community Development will receive $250,000 for five small-business loans on the North Side of Pittsburgh.
  • Ben Franklin Technology Development Partners and Life Sciences Greenhouses will receive $5 million and expects to help finance 17 early-stage technology companies.
  • The Progress Fund will receive $2 million to fund 40 loans in western and northern Pennsylvania, what the DCED said were tourism-related projects.

Thursday, December 22, 2011

Experts give mostly positive outlook in 2012

Good to see people have a positive outlook for 2012, however my question to all is, What has changed from 2008 to now for anyone to believe that the economic climate will be better than we have seen over the past few years?  Other than the Shale play, which has positive and negative consequences for our region, what else is going on that paints such a rosy picture for the near future?  My suggestion: run a lean business based on the realistic approach of a continued soft market for the year ahead.


The national political landscape remains a big question mark, but there's a mostly positive outlook on the Pittsburgh economy in 2012, according to a quartet of business experts.

The predictions were made Wednesday afternoon at the 32nd Pittsburgh Business Times Corridors of Opportunity series.

Stuart Hoffman, senior vice president and chief economist, PNC Financial Services Group Inc., expects the local unemployment rate in 2012 to fall slightly.

“It’ll be another year of recovery for the region’s economy,” he said. Hoffman is looking for a “fairly broad-based” uptick across industry sectors, though he does not anticipate much growth in construction. The main Downtown project is his own company’s: PNC is building a new headquarters tower.

Robert Fragasso, chairman and CEO of Fragasso Financial Advisors Fragasso Financial Advisors, emphasized the cyclical nature of the economy. The packaging is different, he said, but “it isn’t anything different from anything that’s happened before.”

Jeffrey Ackerman, executive vice president, CBRE Inc., spoke of the booming real estate developments in such areas as Cranberry, Oakland and Southpointe. “I feel like I have one foot on hot coals,” he said, but also said activity “is still soft” in other neighborhoods.

“Most important for us is job growth,” Ackerman said. “Any time a job is added, someone has to lease or occupy more commercial real estate.”

He foresees rising rents and falling vacancies in 2012.

“If you’re a tenant — don’t tell your landlord — lock in your long-term lease,” he said.

The panel also included Godfrey Phillips, vice president of research, The Business Journals, who is based in New York and offered the perspective of small business owners across the country gleaned from his research. Phillips said small business owners were largely optimistic — though slightly but not dramatically — less so than a year ago.
All cited the wildcard of the political climate with an upcoming presidential election.

“I’d hope for the political process to improve (in 2012) with quality people in office,” Phillips said.

Hoffman advised the audience to keep an eye on what elected officials do in the waning weeks of 2011 “before they get out of town” for holiday break, “with tax expedition policy.”

Fragasso pointed out that the stock market volatility was largely linked to conditions with the European union, but that American investors should view Europe as “a sideshow” and remain focused.

“Watch yourself,” he said. “Watch your own attitude."

The event was held Wednesday at the Westin Convention Center Hotel in Downtown Pittsburgh.

Gateway Engineers was the presenting sponsor. Sponsors included Desmone and Associates Architects, Tucker Arensberg PC, Peoples Natural Gas and NAIOP Pittsburgh.


Read more http://www.bizjournals.com/pittsburgh/news/2011/12/14/corridors-bright-spots-for-pittsburgh.html

Monday, December 19, 2011

Pittsburgh rated country's most secure large metropolitan area by Farmers Insurance

What’s even better than being ranked the most secure city is how far we’ve come – Pittsburgh has moved up 10 spots in the list since last year.

Farmers Insurance Group of Companies® annually ranks nearly 400 U.S. communities based on safety and security. In its Eighth Annual Most Secure Places to Live in the U.S. study, Farmers has rated Pittsburgh, Pa., as the most secure U.S. community among large metropolitan areas (population of 500,000 or greater).

The Kennewick-Richland-Pasco, Wash., area is the most secure mid-size U.S. city (population between 150,000 and 500,000), while Ithaca, N.Y., ranks as the most secure small town (population less than 150,000).

The rankings, compiled by database experts at www.bestplaces.net, took into consideration crime statistics, extreme weather, risk of natural disasters, housing depreciation, foreclosures, air quality, terrorist threats, environmental hazards, life expectancy, mortality rates from cancer and motor vehicle accidents, and job loss numbers in 379 U.S. municipalities. The study divided the communities into three groups: large metropolitan areas, mid-size cities and small towns.

"Farmers congratulates all of the communities represented in the Farmers Secure Places to Live Survey," stated Jeff Dailey, President and Chief Operating Officer of Farmers Insurance Group.

"Since its founding in 1928, Farmers has been committed to improving the communities in which customers, agents and employees live and work. We are committed to improving safety, expanding educational opportunities, enhancing health and human services, encouraging civic participation and supporting the arts and culture, all part of the criteria that makes up the Farmers Secure Places to Live survey," Dailey said.

Pittsburgh moved up 10 spots from a year ago to rank No. 1 among large metropolitan areas in the 2011 Farmers study. This is Pittsburgh's fifth appearance in the Top 20, with its previous best ranking ninth in the 2005 study. Its low housing depreciation, personal crime rate and motor vehicle deaths, along with a high stability rate contributed to its top rating.

The Kennewick-Richland-Pasco area reclaimed its spot as the top mid-size city it previously held in 2005, and it marks the sixth time the area has been ranked in the study's Top 20. Its lofty ranking is largely due to a high job growth rate and low housing depreciation and unemployment rate.

Ithaca earned the top rating among small towns in the annual Farmers study for the first time. It has four previous Top 5 rankings, including third place in both 2007 and 2010. Ithaca earned its elite spot thanks to low rates of unemployment, violent crimes, motor vehicle deaths and housing depreciation.

Here are the Farmers Insurance Group's Most Secure U.S. Places to Live for 2011:

Large Metro Areas (500,000 or more residents)

  1. Pittsburgh, Pa.
  2. Rochester, N.Y.
  3. El Paso, Texas
  4. Syracuse, N.Y.
  5. Bethesda-Gaithersburg-Frederick, Md.
  6. Buffalo-Niagara Falls, N.Y.
  7. Wichita, Kan.
  8. Omaha, Neb.-Council Bluffs, Iowa
  9. Denver-Aurora, Colo.
  10. Austin-Round Rock, Texas
  11. Bridgeport-Stamford-Norwalk, Conn.
  12. Albany-Schenectady-Troy, N.Y.
  13. McAllen-Edinburg-Mission, Texas
  14. Nassau-Suffolk counties, N.Y.
  15. Honolulu, Hawaii
  16. Madison, Wis.
  17. Colorado Springs, Colo.
  18. Oklahoma City, Okla.
  19. Des Moines-West Des Moines, Iowa
  20. Minneapolis-St. Paul-Bloomington, Minn.

Mid-Size Cities (150,000-500,000 residents)

  1. Kennewick-Richland-Pasco, Wash.
  2. Boulder, Colo.
  3. Fargo, N.D.-Moorhead, Minn.
  4. Olympia, Wash.
  5. Binghamton, N.Y.
  6. Sioux Falls, S.D.
  7. Bellingham, Wash.
  8. Lincoln, Neb.
  9. Fort Collins-Loveland, Colo.
  10. Rochester, Minn.
  11. Duluth, Minn.-Superior, Wis.
  12. Utica-Rome, N.Y.
  13. Bremerton-Silverdale, Wash.
  14. Yakima, Wash.
  15. Anchorage, Alaska
  16. Burlington-South Burlington, Vt.
  17. Las Cruces, N.M.
  18. Green Bay, Wis.
  19. Houma-Bayou Cane-Thibodaux, La.
  20. Spokane, Wash.

Small Towns (Fewer than 150,000 residents)

  1. Ithaca, N.Y.
  2. State College, Pa.
  3. Bismarck, N.D.
  4. Elmira, N.Y.
  5. Corvallis, Ore.
  6. Logan, Utah
  7. Midland, Texas
  8. La Crosse, Wis.-Winona, Minn.
  9. Grand Forks, N.D.-Crookston, Minn.
  10. Lewiston, Idaho-Clarkston, Wash.
  11. Altoona, Pa.
  12. Morgantown, W.Va.
  13. Rapid City, S.D.
  14. Wenatchee, Wash.
  15. Eau Claire, Wis.
  16. Johnstown, Pa.
  17. San Angelo, Texas
  18. Fond du Lac, Wis.
  19. Iowa City, Iowa
  20. Sioux City, Iowa

Read more http://www.prnewswire.com/news-releases/eighth-annual-farmers-insurance-study-ranks-the-most-secure-places-to-live-in-the-us-135661698.html Picture from http://m.wikitravel.org/en/Pittsburgh

Tuesday, December 13, 2011

Green Retrofitting Surpasses New Green Construction for First Time

Do you agree that retrofitting existing buildings makes more sense that building new ones?

Green retrofitting of commercial buildings is outpacing the construction of new green buildings, according to a new report issued this week.

The trend could mean that more building owners may believe that bringing their buildings up to Leadership in Energy & Environmental Design (LEED) certification may not only be cost efficient, but the environmentally conscious thing to do. It could also mean that new construction has continued to plummet in the last four years, yielding few new green building projects on the drawing boards.

LEED-certified existing buildings are outpacing their newly built counterparts, according to the U.S. Green Building Council’s (USGBC) report. As of December, square footage of LEED-certified existing buildings surpassed LEED-certified new construction by 15-million square feet on a cumulative basis.

McGraw Hill Construction’s Green Outlook 2011 report states that by 2015, the green share of the largest commercial retrofit and renovation activity will more than triple, representing a $14 billion to $18 billion opportunity in major construction projects alone.

“The U.S. is home to more than 60 billion-square-feet of existing commercial buildings, and we know that most of those buildings are energy guzzlers and water sieves,” Rick Fedrizzi, president, CEO and founding chair of USGBC, said in a statement. “Greening these buildings takes hands-on work, creating precious jobs especially for construction workers. Making these existing buildings energy and water efficient has an enormous positive impact on the building’s cost of operations. And the indoor air quality improvements that go with less toxic cleaning solutions and better filtration create healthier places to live, work and learn.”

Historically, LEED-certified green projects were overwhelmingly made up of new construction projects, both in volume and square footage. That began to change in 2008, according to USGBC, when the LEED for Existing Buildings: Operations & Maintenance (O&M) program began experiencing explosive growth. In 2009, projects certified under LEED for Existing Buildings: O&M surpassed those certified under its new construction counterpart on an annual basis, a trend that continued in 2010 and 2011.

“This new data marks the first time that LEED-certified existing buildings have surpassed LEED-certified new construction cumulatively,” Fedrizzi continued. “The market is becoming increasingly aware of how building owners can get better performance through green operations and maintenance…”

David Cohen, senior director of property at Fireman’s Fund Insurance Co., said his company has seen their customers express increased interest in retrofits to make their buildings greener.

“We are not surprised to see the increase of existing buildings becoming LEED-certified given the economic slowdown’s impact on new construction and as building owners have become more aware and educated on both the financial impact and environmental benefits of having a green building,” Cohen said. “Green buildings can boost real estate owners’ bottom line by protecting and building net operating income, attracting and retaining quality tenants and improving the environment. Simply put, green buildings create a triple-net effect, benefitting the owners’ bottom line, its tenants and the environment.”

Fireman’s Fund is considered the first property/casualty insurance firm to offer green insurance to the U.S. commercial marketplace by providing a financial incentive for green building owners in the form of a 5 percent discount on the policy premium for LEED-certified buildings.

The company has recently expanded its green offerings to include historic buildings, hotels, manufacturing facilities, restaurants, and personal and commercial auto.

Since the economic downturn there have been few new studies on the value of building green, or retrofitting a building to be green, for developers.

A study by CoStar Group in 2008 showed that sustainable “green” buildings outperform their non-green peer assets in terms of occupancy, sale price and rental rates, sometimes by wide margins.

At that time, LEED buildings were commanding rent premiums of $11.33 per square foot over their non-LEED peers and had 4.1 percent higher occupancy. Rental rates in Energy Star buildings represented a $2.40 per square foot premium over comparable non-Energy Star buildings and had 3.6 percent higher occupancy, the CoStar report showed.

Energy Star buildings also sold for an average of $61 per square foot more than their peers, while LEED buildings commanded $171 more per square foot, according to CoStar.

“Projects worldwide are proving that green building doesn’t have to mean building new,” the USGBC states.

A major renovation for the now recently LEED-certified Empire State Building in New York has its owners forecasting they will slash energy consumption by more than 38 percent, saving $4.4 million in energy costs annually.

Over 43,000 projects are currently participating in the commercial and institutional LEED rating systems, comprising nearly 8 billion-square-feet of construction space in the U.S. and 120 countries. Additionally, nearly 15,000 homes have been certified under LEED.

Read more http://www.insurancejournal.com/news/national/2011/12/09/226746.htm

Picture from paradigms4progress.wordpress.com

Saturday, December 10, 2011

SBA Helping Owners Tap Their Real Estate Loans for Equity

Big, big FYI to small business owners:

The SBA wants to put some extra money in your pockets. To do so they’ve implemented a temporary program to help small businesses refinance commercial loans and restructure their debt. The SBA recently expanded the program and increased eligibility so that more people can take advantage of it before the program ends in September 2012.

The 504 Loan Refinancing Program—implemented under the Small Business Jobs Act of 2010—allows small businesses to refinance not only existing debt but use excess equity to obtain working capital that can be used to finance eligible business expenses, explains Steve Smits, associate administrator for the Office of Capital Access at SBA.

Some such expenses are utilities, insurance, and salaries. Though the SBA site simply states: "Any expense directly related to business operations." It’s hoped the expansion will alleviate financial stresses while both protecting and creating jobs.

The temporary refinancing program is intended to aid the large number of small businesses that are expected to have their loans mature. Now a third-party lender only needs to match or exceed the amount provided by the SBA, instead of 50 percent of the project. Also borrowers are now able to finance the appraised value of available collateral (including applicable fixed assets) up to 90 percent. 

It seems as though this opportunity to refinance comes at a good time. "Right now the commercial market—at least nationally-speaking—is undergoing a stabilization trend," says George Ratiu, an economist for the National Association of Realtors. The demand for real estate space in the core property types: office, industrial, retail, and the apartment sector has stabilized and is turning positive, a relief since demand has been negative for the past three years.

The problem is that people are just unaware of this help from the SBA program. Several states have yet to take full advantage of the refinancing program. As of early November, 11 states had only one approved loan, 10 had not yet tapped into the program, and the average number of approved loans across the nation was nine.

This may seem surprising, given the SBA’s high expectations for the program, which ends September 27, 2012. According to the SBA, “As many as 8,000 businesses may participate in this program during the current fiscal year, which will provide up to $7.5 billion in SBA-guaranteed financing leading to total project financing of almost $17 billion.” Despite high hopes, as of early November only 365 loans had been approved in 40 states since application acceptance starting Feb. 28.

The low number also raises concerns about the money actually available for the program, as it’s completely funded through additional fees gathered from refinancing activities. It seems that many who could be benefiting from the program aren’t, possibly due to the restrictive nature of prior guidelines. But a look at the market shows no lack of need.

According to Ratiu, properties in the lower evaluation spectrum and inland geographies have been struggling with financing, prices, and capital availability, even through the recovery period. "Financing is still the No. 1 concern for commercial space in these markets," he says. Businesses in these areas may very well benefit from the SBA program. Since the program was expanded in October, interest has at least increased. Inquiries into the refinancing program (from lenders) has gone from about four to over 45 a day in the processing centers.

Some entrepreneurs aware of the program don't think it goes far enough to help struggling small businesses. Chris Hurn is one of those small business owners. He’s also the CEO and co-founder of Mercantile Capital Corporation, a commercial real estate lender, giving him a unique perspective on the matter. He thinks the program isn’t an absolute solution, but a step in the right direction—albeit a baby step. “It’s not the silver bullet we’ve all been looking for,” he says, “but it will certainly help a fair amount of small business owners out there to tap that embedded equity and use it for purposes that the business needs right now.”

He also sees ways the program could be improved.

Short of making it a permanent offer, Hurn thinks more businesses would benefit from the temporary program if it were extended until the funds are utilized. “They wrote the regulations so restrictively that it wasn’t until Oct. 12 that the program was actually able to do fully what it needed to do per the law,” he says. He wants the sunset lifted to maximize the opportunity: “Don’t penalize the small business guy. Give him a chance.”
 
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