Pittsburgh Office Market
The overall vacancy rate remained relatively flat again in the fourth quarter of 2024 at 24.4% from 24.5% in the third quarter 2024. Class A vacancy in the CBD rose from 22.3% in the third quarter of 2024 to 23.6% in the fourth quarter of 2024. The delivery of the FNB Financial Center had a favorable impact on the CBD Class A market. The buildings strong pre-leasing activity led to positive absorption. However, it is important to note that while absorption climbed, the introduction of the remaining vacant space in the building has simultaneously added to the CBD vacancy rate while their relocation impacted the Fringe with negative absorption. The fourth quarter of 2024 had a notable increase in the average asking rents for Class A properties, climbing to $29.33/SF from $29.02/SF in the third quarter of 2024. This rise is largely attributed to the higher rental rates commanded by the recently completed FNB Financial Center. Class B asking rates remained relatively unchanged for the same period.
Download Pittsburgh Office Market Report 4Q24Pittsburgh Industrial Market
Class A inventory has been on a steady decline in vacancy from 6.5% in the first quarter 2024 to 5.0% in the fourth quarter 2024 while overall vacancy remained stable during the same period. The West submarket remains the strongest performer among Pittsburgh’s submarkets, concluding the fourth quarter of 2024 with more than 172,405 square feet of positive absorption and achieved nearly 500,000 square feet of positive absorption for 2024. All three subtypes, Gen Industrial, R&D/Flex and Warehouse/Distribution, experienced a decrease in vacancy rates. Class A warehouse/distribution subtype having the strongest reduction in vacancy, dropping from 7.5% in first quarter of 2024 down to 4.9% in fourth quarter of 2024.
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