Pittsburgh Office Market
Between 2020 and the first quarter of 2025, the market experienced varied construction deliveries and negative net absorption, leading to an increase in total vacancy rates from 19.3% in 2020 to 25.0% in first quarter of 2025. This trend reflects ongoing challenges in the market’s demand and occupancy dynamics.
Despite the rise in direct asking rents for both Class A and Class B properties, these figures represent the initial expectations and do not necessarily reflect the final lease rates agreed upon in the final transaction. Sublease availability continues to diminished from 3.8% in the second quarter of 2023 to 2.9% in the first quarter of 2025, while overall vacancy rates continue to climb. The lack of new office construction in Pittsburgh can be attributed to significantly altered workplace dynamics that reduce the demand for traditional office space making developers cautious about initiating new projects in an already saturated market.
Pittsburgh Industrial Market
Demand for quality space remains strong, as two speculative buildings were leased during construction prior to shell completion. The largest available Class A building is 250,000 SF while the largest available Class A building in the West submarket measures 133,000 SF. In all three, Gen Industrial, R&D/Flex and Warehouse/Distribution, Class A vacancy rose slightly amid market volatility reflecting increased pressures and changing demand dynamics in the market.
Download Pittsburgh Industrial Market Report 1Q25