Pittsburgh Office Market
Market fundamentals show early signs of stabilization and improvement in 2025 after two negative quarters, net quarterly absorption turned positive in the third and fourth quarters of 2025 helping to improve the overall negative absorption for the year. As a result, overall vacancy declined to 24.4% by year-end. Throughout 2025, Class A average asking rents were relatively flat, starting first quarter of 2025 at $29.54/SF and ending the fourth quarter of 2025 at $29.59/SF. Class B edged up modestly from $22.48/SF to $22.57/SF over the same period. The spread between Class A and Class B held steady at roughly $7.00/SF. For the first time in many years, there was no speculative office construction in Pittsburgh. Persistently high vacancy and muted tenant expansion reduced the need for additional supply, while rising construction and financing costs have undermined the feasibility of new projects.
Download Pittsburgh Office Market Report 4Q25
Pittsburgh Industrial Market
In 2025, only 188,000 SF delivered in first quarter of 2025, while absorption remained positive totaling 965,060 SF at year-end, with vacancy hovering between 7.1% and 7.0% midyear before easing back to 6.8% by fourth quarter of 2025. This signals stable demand and gradual rebalancing amid limited new supply to the market. Total absorption was positive for seven consecutive quarters through fourth quarter of 2025. Momentum strengthened over time, with approximately 523,000 SF absorbed in 2024 and 965,000 SF in 2025, capped by a strong fourth quarter at 464,729 SF. Overall vacancy rose from 5.5% in fourth quarter of 2022 to a high of 7.1% in first quarter of 2025 before easing to 6.8% by fourth quarter of 2025, while Class A vacancy climbed from 3.9% to a peak of 6.5% in the first quarter of 2024 and then improved to 4.9% by year-end 2025. Class A consistently remained below the overall rate, with the gap narrowing through late 2023–early 2024 and widening again in 2025 as higher-quality assets backfilled space more quickly than the overall market.
Download Pittsburgh Industrial Market Report 4Q25