On April 27, 2021, Nexii Building Solutions announced their plan to partner with actor and Pittsburgh native Michael Keaton and Trinity Sustainable Solutions, a local development company, to develop a new green manufacturing plant in the city of Pittsburgh. Take a closer look at the development project and see how it could impact real estate investors in the local market.
From Steel City to Green City
Pittsburgh, once known as the Steel City, was home to the country's largest iron and steel manufacturing plants at the turn of the century. After the fall of steel in the late 1970s and early 1980s, the plants closed and residents fled, leaving Pittsburgh as a shell of what it once was. Inward migration is increasing to Pittsburgh once again as new developments like this bring jobs back to the area.
Nexii, a Pennsylvania-based company, specializes in sustainable and environmental real estate construction, with the goal of reducing the carbon footprint of real estate development. The building will be the first to use Nexiite, a one-of-a-kind, sustainable concrete alternative developed by Nexii.
The lightweight Nexiite panels are built to dimension and then assembled on-site. This process helps reduce build time by an average of 75% while reducing construction waste, labor costs, and accidents.
This building strategy is also helpful given the current lumber shortage and high cost for construction materials right now. This plant is just one of the newest "green" additions to the city and is slated to open in summer 2022.
What it means for investors
The plant is predicted to create roughly 300 jobs in clean energy and would bring safe, long-term job opportunities to the area. Developments of plants like this, among others in the area, are a positive sign for recovery that will hopefully drive new demand to the city.
Home appreciation for the city of Pittsburgh has increased 20% year over year, according to Redfin (NASDAQ: RDFN), making it one of the fastest-appreciating cities in the country right now. Despite rising real estate prices, there are still a number of deals to be found in this area, and real estate prices are still below the national average, meaning investors getting into the market now could benefit from continued growth in the future. One development plant doesn't mean the city is out of the clear just yet, but it is a step in the right direction.