1. 1 DOWNTOWN AT WORK Pittsburgh Downtown Partnership March 2007 Prepared by: STRATEGIC METRICS GROUP www.strategicmetricsgroup.com 412.480.4332

2. 2 DOWNTOWN’S SHARE OF REGION’S EMPLOYEE BASE (2006) Downtown Pittsburgh hosts 11% of the 5-county region’s employee base, and slightly less (6%) of the region’s establishment base. Source: Claritas Inc.

3. 3 DOWNTOWN PITTSBURGH 5 Census Tracts North Shore South Shore Golden Triangle Uptown Strip

4. 4 SUMMARY Downtown hosts a very large proportion of the region’s workforce. The number of people working in Downtown has grown substantially in the last ten years. Downtown’s workforce population represents a wide variety of industries. A majority are classified as either Finance or Services About 1/3 of workers in Downtown earn over $75,000 per year. Downtown workers who are less affluent feel their needs and interests are not yet being addressed

5. 5 + 25,371 (+ 23%) 2.07% CAGR Source: Claritas Inc. DOWNTOWN EMPLOYEES The Downtown Employee Count Has Grown At An Annual Rate Of About 2% Since 1996.

6. 6 DOWNTOWN EMPLOYEES In 2006 The Golden Triangle Hosts The Bulk Of The 136,920 Downtown Pittsburgh Employees. # of Employees Source: Claritas Inc.

7. 7 DETAIL OF DOWNTOWN’S TOP 5 INDUSTRY CLASSES 2006 Number of Employees in Downtown Source: Claritas Inc.

8. 8 Each Area Of Downtown Has Its Own Unique Mix Of Industry Classes That Define Its “Personality” UPTOWN GOLDEN TRIANGLE STRIP DISTRICT SOUTH SHORE NORTH SHORE TOTAL DOWNTOWN AGRICULTURE 0%.1%1.4%0%.2% MINING 0%.1%0%.1% CONSTRUCTION.4%2.3%3.4%0%.5%2.1% MANUFACTURING 3.6%6.8%10.6%.5%38.0%7.7% TRANSPORTATION 1.1%2.8%28.4%1.9%2.6%4.8% WHOLESALE 1.8%.5%8.5%12.2%1.9%1.7% RETAIL 3.4%5.9%15.9%21.3%8.2%7.3% FINANCE 1.4%36.9%2.2%35.3%5.3%31.3% SERVICES 76.4%31.9%24.4%26.9%33.9%33.2% PUBLIC ADMIN 11.2%9.9%3.8%.7%1.5%8.9% MISC.7%2.8%1.5%1.2%8.1%2.7% TOTAL100% Source: Claritas Inc.

9. 9 % of EMPLOYEES IN RETAIL Retail employment makes up a substantial proportion of jobs in the South Shore (Station Sq.) and Strip District. North Shore South Shore Golden Triangle Strip Uptown

10. 10 % of EMPLOYEES IN FINANCE Employment in Finance is heavily concentrated in the Golden Triangle (37%) and South Shore (35%). North Shore South Shore Golden Triangle Strip Uptown

11. 11 % of EMPLOYEES IN SERVICES The Services category is by far the most common in all tracts. More than 3/4 of all employees in the Uptown area are classified in this category. North Shore South Shore Golden Triangle Strip Uptown

12. 12 % of EMPLOYEES IN PUBLIC ADMINISTRATION Employment in Public Administration is less than 10% in all districts with the exception of Uptown (11%) where the City and County buildings are located. North Shore South Shore Golden Triangle Strip Uptown

13. 13 % of EMPLOYEES IN MANUFACTURING Jobs classified as Manufacturing are most heavily concentrated on the North Shore (38%). North Shore South Shore Golden Triangle Strip Uptown

14. 14 While Golden Triangle Accounts For The Bulk Of The Employee Growth In The Last 10 Years Both The South And North Shore Areas Have Grown At A Much Faster Pace. Source: Claritas Inc. # of Employees Total Employees by Downtown Area

15. 15 EMPLOYEES Source: Claritas Inc. Growth Decline Finance, Services And Public Administration Sectors Account For The Vast Majority Of Employment Growth In Downtown Pittsburgh

16. 16 EMPLOYEE GROWTH SUMMARY Downtown Employees Source: Claritas Inc.

17. 17 Source: Claritas Inc. Breakdown of FINANCE Industry Class Employee growth in FINANCE is driven by Depository Institutions and Holdings & Other Investment Offices Percent of Growth

18. 18 Source: Claritas Inc. Breakdown of SERVICE Industry Class Legal Services, Amusement & Recreation (such as theaters) account for half of the growth in SERVICES Percent of Growth

19. 19 Source: Claritas Inc. Breakdown of PUB ADMIN Industry Class The ripple effects of public security and terrorism initiatives have helped drive the growth of PUBLIC ADMINISTRATION since 1996. Percent of Growth

20. 20 DOWNTOWN ESTABLISHMENT GROWTH Downtown Pittsburgh 1996 to 2006 1996 through 2006 + 360 (+ 8%) 0.76% CAGR Source: Claritas Inc.

21. 21 # of Establishments Source: Claritas Inc. Net increase 360 The number of business establishments in Downtown has increased in every area except Uptown

22. 22 ESTABLISHMENTS Source: Claritas Inc. Growth Decline Finance And Services Account For Close To 250 More Business Establishments In Downtown Compared To 1996.

23. 23 DOWNTOWN WORKER INCOME Total Annual Household Income % of Respondents One Third Of Downtown Workers Earn Incomes In Excess Of $75,000 Per Year Source: PDP 2003 Commuter Needs Study, 2005 Transit Study, 2006 Pedestrian Traffic Study,.

24. 24 Q3. How do you typically travel to / from downtown Pittsburgh? Strong correlation exists between bus and “T” commuting & income: Income Level Bus/”T” Usage <$10,000 100% $10K - $24,999 82% $25K - $49,999 51% $50K - $74,999 39% $75K - $99,999 31% $100,000 + 19% n = 750 workers Source: PDP, 2005 Transit Study, Overall, Nearly 4 In 10 Downtown Workers Use The Bus Or Light Rail System To Commute To / From Downtown.

25. 25 Percent Wages Of Downtown Workers Are Higher Than Those In Other Areas Of The City Source: 2000 US Census - Census Transportation Planning Package.

26. 26 Percent Wages Of Workers On The North Shore Skew Higher Than Other Areas Of Downtown Source: 2000 US Census - Census Transportation Planning Package.

27. 27 DOWNTOWN WORKER HH INCOME % of Respondents 1/3 Of Downtown Workers Have HH Incomes In Excess Of $75,000 Per Year Source: PDP 2003 Commuter Needs Study, 2005 Transit Study, 2006 Pedestrian Traffic Study,. Total Annual Household Income

28. 28 FOCUS GROUP KEY FINDINGS People Genuinely Like Being Downtown workers and students had good things to say enjoy being close to many different and exciting things appreciate the convenience and excitement that working in Downtown offers

29. 29 FOCUS GROUP KEY FINDINGS Shopping Downtown Needs To Be Unique It is no surprise that most Downtown workers feel that the options available to them for retail shopping are severely limited. Many express the desire to have conveniently located stores that are similar to those they find near where they live, (e.g. Target, Giant Eagle). However, stores located in Downtown that are otherwise ubiquitous might serve only the convenience item needs of workers. Most like the idea of a centralized shopping district in Downtown.

30. 30 FOCUS GROUP KEY FINDINGS Addressing Needs of the Broader Downtown Work Force. Downtown Pittsburgh’s workforce is far from homogenous with a wide range of age and socio- economic groups present each day. The perceptions of what are both positive and negative aspects of working downtown appear to be strongly driven by the income level and occupation of the individual. Those with higher incomes are much more positive about what working Downtown has to offer. The Cultural District and the restaurants, galleries and theaters there is seen as a great example of what Downtown can be. However, the perception exists that the needs and interests of those with less disposable income have not yet been adequately addressed.

31. 31 FOCUS GROUP KEY FINDINGS Desire for More Police Presence In most of the sessions, it was mentioned that Downtown has specific areas that present issues of concern with safety. Market Square, Fifth and Wood and others were cited as areas that many simply avoid. This is especially true at night. Most who do enjoy staying Downtown for evening activities limit themselves to the Cultural District and other areas that they deem safe. Higher visibility of Police presence is something many would like to see.

32. 32 FOCUS GROUP KEY FINDINGS Parking is Expensive The high cost of parking in downtown was also an issue expressed by all of the groups. This is obviously not a simple problem to address, but the perception does exist and represents a potential obstacle for many who would consider spending more time Downtown after work.

33. 33 MONTHLY DOWNTOWN PATRONAGE/DOLLARS Average $ Spent By Vendor / Activity Focus Group Type Retail Food & DrinkServicesRecreationTOTAL General Work Force #1 $107$93$6$15$221 Students $60$62$2$34$158 General Work Force #2 $132$98$28$22$280 Executives $110$422$64$93$689 Overall Average $102$169$25$41$337 As Might Be Expected, Income Is Highly Correlated To Downtown Spending Habits. The Highest Compensated Group (Executives) Spend Twice The Monthly Average

34. 34 What Does All Of This Mean?

35. 35 EXECUTIVE SUMMARY  137,000 people work at 5,000 business establishments located across the 5 census tracts (Uptown, Golden Triangle, Strip District, South Shore, North Shore) that collectively define Downtown Pittsburgh.  The Golden Triangle is home to the majority of Downtown’s employees and establishments. This area alone accounts for 80% of Downtown’s employees and 78% of its business establishments.  Positive momentum is taking place in Downtown Pittsburgh. Over the past 10 years the number of Downtown business establishments has grown.08% annually. Over this same time period the number of employees working in Downtown has risen at an annual rate of almost 2.1%.  Services (33%) and Finance (31%) account for almost two-thirds of Downtown’s 2006 workforce. The Finance segment is responsible for more net employee growth since 1996 than any other industry class. Legal Services, part of the broader Services category, is another key growth sector boosting Downtown’s employee count since 1996.

36. 36 EXECUTIVE SUMMARY  The North and South Shore sections of Downtown appear poised to drive growth in the future. Both areas have added employees and grown impressively (relative to their size) since 1996 and hold vast potential for even more development.  Workers enjoy their daily Downtown experience and most agree there is positive change and prudent redevelopment taking place.  Redevelopment efforts will have a greater chance of success if they addresses the needs of a wide range of socio-economic levels among workforce and students.