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Office Rents Rising

July 14, 2022 | BSRE

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PITTSBURGH, PA – Burns Scalo Real Estate (BSRE) Pittsburgh’s largest local landlord of luxury office space totaling approximately 3 million square feet is raising its rental rates.

“As demand increases for a higher-quality workplace, BSRE continues to develop products loaded with purposeful amenities and lobbies that create meaningful connections. All while delivering resort-quality services scripted by the finest hotels,” said James Scalo, Chief Executive Officer for BSRE.

Tour activity is nearing pre-pandemic levels as organizations prepare to return to the office. We are experiencing a trend of organizations focused on a flight to quality, PLUS experience. They are upgrading their workplace, taking fewer square feet, and saving money in the long term. “This is hard to argue with. The approach is quite practical and very wise,” stated Scalo.

"...BSRE continues to develop products loaded with purposeful amenities and lobbies that create meaningful connections..."
James Scalo, BSRE CEO

“Rising construction costs, interest rates, and overall inflation are also mandating the rise in rental rates”, said Christie Reiber, Chief Investment Officer.

“BSRE has also introduced “dynamic pricing” to its new developments. A model where rental rates fluctuate based on the floor, views, and supply,” stated Scott DiGuglielmo, VP of Brokerage.

“BSRE not only builds high-end products but has also found success in delivering five-star service. BSRE employees receive year-round training in programs from Ritz Carlton, Flickinger People & Skill Development, Grant Cardone,” stated Kelly Mihalik, Client Experience Supervisor.

BSRE recently signed a conventional office lease in the $45.00/ SF range in its newest building under construction in the Strip District. Also a leader in the life sciences industry, BSRE is uncovering leases in the $60.00- $70.00/SF range for its luxury wet lab products.

“Office rents are only 3-5% of an operating expense budget. The cost to upgrade your office space literally will only add 1-2% from your current rent. The wise companies that place their people first recognize this. NOW stands for New Office Wins!” stated Scalo.

As organizations globally return to work, the office will no longer be viewed as a commodity. The office must be a magnet, not mandate. The flight to new is a reality as leadership has either gotten younger or realized they must create environments people WANT to return to.

About Burns Scalo Real Estate
Burns Scalo Real Estate is the local leader in identifying and creating dynamic development opportunities. We believe that better places create better lives —and in doing so—we transform spaces, businesses, and the communities we serve. The organization’s development, brokerage, and management services unify to create spaces that people want to come to, not just have to.