Pittsburgh Office Market
Absorption in the third quarter of 2023 totaled negative 33,856 SF, a significant decrease from the first half of 2023’s negative total of 965,671 SF. The construction pipeline remained unchanged again this quarter with no new starts expected in the foreseeable future due to the increased cost of construction, high interest rates and a large existing inventory of quality office space. Vacancy and asking rents both remained relatively stable. The vacancy rate increased ever so slightly to 24.0% in the third quarter of 2023 from 23.9% in the second quarter.
Pittsburgh Industrial Market
The industrial market continued its pause during the third quarter of 2023 with absorption of 120,000 SF for a year-to-date total of 635,000 SF, which is well below the average performance levels of the past three years and closer to pre-Covid levels. Market-wide vacancy increased slightly from 6.3% to 6.7% with Class A vacancy increasing from 5.2% to 5.9% as over 700,000 SF of Class A inventory was added during the third quarter 0f 2023.Asking rents to have remained stable and in some cases increased slightly as interest carry on new speculative inventory has risen over the past six months.Download Pittsburgh Industrial Market Report 3Q23