UPMC to move 1,400 more workers to U.S. Steel Tower
By Sam Spatter
Published: Wednesday, March 27, 2013, 12:01 a.m.
UPMC plans a major expansion in U.S. Steel Tower, moving 1,400 employees from other locations to Downtown.
A number of other tenants have moved or will move out of the 64-story skyscraper to make room, including PNC Bank and Gateway Health Plan.
“By October, we expect 3,750 employees to occupy 23 floors of the tower,” said Susan Manko, a UPMC spokeswoman. “Currently, about 2,350 UPMC employees occupy 15 floors,” she said. UPMC is the building's largest tenant.
The newcomers are personnel from UPMC Health Plan, the health care system's insurance unit, and from other corporate and administrative branches, she said. They will be moving from Oakland and other locations that UPMC owns or leases.
“Our administrative support functions are being moved out of our hospitals and clinical facilities because of growing demand for our clinical and patient care service,” she said. “It makes economic and logistical sense to centralize functions at our headquarters in U.S. Steel Tower.”
Several tenants said they left U.S. Steel Tower because there is little or no room for expansion.
Towers Watson, a benefits consultant, moved most of its employees into One PPG Place because it needed room, spokesman Josh Wozman said.
“We identified space in PPG Place where we gained the space, which was not available in (U.S. Steel Tower),” Wozman said. A unit of Towers Watson will remain there, but about 75 percent of its 200 employees relocated.
Gateway Health Plan, a managed care provider, signed a lease for 51⁄2 floors at Four Gateway Center, Downtown, plus an option for two more floors.
“Gateway will move in Friday, and I expect it will complete the move by Monday,” said Paul Horan, of Colliers International/Pittsburgh, who handled the lease. Gateway Health will be leaving space it subleased from PNC.
Michael Blackwood, Gateway CEO, said last year that the company's operations require keeping staff on the same floor as much as possible, and each floor in Four Gateway offers that space.
PNC Bank announced plans to move out of four floors at U.S. Steel Tower for space at 500 Smithfield, the former Lord & Taylor building, according to a report by commercial real estate firm Jones Lang LaSalle. PNC said it will move in either late 2013 or early 2014. PNC purchased the Lord & Taylor building in June and has been converting it from retail into office space.
PNC will maintain other operations in U.S. Steel Tower upon renewal of a lease, according to the Jones Lang LaSalle report.
PNC spokesman Fred Solomon declined to comment on its leases at U.S. Steel Tower.
Brokerage firm Janney Montgomery Scott LLC moved to PPG Place in December, said Jim Foley, branch manager.
“PPG's space was a better size for our company. We found the area around PPG Place had more restaurants and events than we found on Grant Street. And the personnel that UPMC was bringing into the building were more clerical and administrative than the professional employees who are important for our business,” he said.
The building did have at least one major renewal when U.S. Bankruptcy Court renewed for 54,936 square feet.
The tenant moves are expected to result in occupancy levels at U.S. Steel Tower declining from nearly 100 percent to 93.5 percent, according to the Jones Lang LaSalle report.
Todd Swisher of CBRE Inc., in charge of leasing of the building, could not be reached for comment.
Still undecided are the plans of the building's name tenant — U.S. Steel Corp., which occupies 14 floors.
In early 2012, the steelmaker said it is exploring whether to renew its headquarters lease there or to move on plans to construct a build-to-suit campus with occupancy in 2017, when its lease expires.
The company is not close to a decision, spokesman Chuck Rice said on Tuesday.
Sam Spatter is a staff writer for Trib Total Media. He can be reached at 412-320-7843 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Pa. unemployment rate at the lowest since 2008; more workers finding jobs
- Judge says American Airlines can’t end retiree benefits yet
- Court declines to block drug ruling in patent case
- Wages have soared in Pittsburgh, but economy appears to have stalled
- Emboldened by Italy move, QVC to expand into France
- How’s your doctor doing? Comparison shop online
- GlaxoSmithKline discloses bribery inquiries
- PPG shareholders vote against proposals; sales, profit see double-digit increases
- Subway: ‘Yoga mat chemical’ almost out of bread