Pittsburgh Office Market
Market conditions in 2025 have stabilized, with vacancy rates holding steady at 25.0% through the first two quarters of the year. This relative flatness suggests the market has reached a period of equilibrium following several years of rising vacancies and volatile net absorption. Rental rates have shown a steady upward trend from 2020 to the second quarter of 2025, increasing from $24.18 to $26.71 per square foot. Despite changing market conditions and fluctuations in demand, landlords have successfully implemented incremental rent increases each year. Since mid-2020, direct space availability and the overall vacancy rate have each risen markedly, with direct availability increasing from 16.4% to 24.3% and vacancy climbing from 17.9% to 25.0% for the same period. Developers are facing increased construction and financing costs, making new projects less viable in the current environment. Instead, there is a greater focus on repurposing and upgrading existing spaces to meet evolving market preferences, rather than introducing new office buildings into a saturated market.
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Pittsburgh Industrial Market
Total absorption has remained positive over the past several quarters, ending the second quarter of 2025 with positive absorption of 145,290 SF, indicating steady demand for space overall. Only 90,277 SF remains under construction with scheduled completion by third quarter of 2025. However, based on recent activity, several speculative projects may commence in late third quarter or early fourth quarter of 2025. In 2024 and into 2025, new construction deliveries declined sharply, while positive net absorption continued, resulting in vacancy rates remaining relatively stable, between 6.8% and 7.0%.
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