The Pittsburgh market continues to live up to the national hype, posting strong gains in all product types while sales continue to remain solid.
The OFFICE MARKET for the Third Quarter of 2013 saw an overall vacancy rate of 8.1% with a quoted rental rate at $18.84. While the vacancy rate ticked up just .1% over the Second Quarter of 2013, the quoted rental rate surged 21 cents per square foot from $18.63. As compared to the Second Quarter of 2012, the vacancy remained the same while the quoted rental rate is up 11 cents per square foot. The Oakland Market near the Universities continues to shine with an effective zero percent vacancy rate. The Class A market in the CBD enjoys a 6.8% vacancy rate with a quoted rate of $24.77 psf, while the Greater Downtown market is even better with a 2.5% vacancy rate and a $22.43 psf average for the Third quarter of 2013.
Colliers International | Pittsburgh Brokers Honored at the Western Pennsylvania Chapter SIOR Awards Luncheon
Colliers Brokers Receive Top Honors in Several Award Categories for 2012 Deals of the Year from the Society of Industrial and Office Realtors (SIOR)
Colliers International | Pittsburgh is pleased to announce that it has received several top honors in multiple commercial real estate categories at the annual Western Pennsylvania Chapter SIOR Luncheon, held Wednesday, May 15, 2013 at the Duquesne Club in Downtown Pittsburgh, honoring the Region’s Top Brokers and Deals for 2012.
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For the first time in the last four quarters, the Pittsburgh office market vacancy has increased. The Pittsburgh office market vacancy
rate for the first quarter of 2013 was 8.0%; 10 basis points above the prior quarter and 380 basis points lower than the national average of 11.8%. Class A office space vacancy remained unchanged from the prior quarter at a rate of 6.3%. Class B office space reported a vacancy rate of 9.3% which is a 30 basis point increase from the prior quarter. Class C office space increased by 10 basis points to a rate of 7.3%. As expected from the ascending vacancy trend, the average asking price per square foot dropped 1.4% to a rate of $18.49.
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The momentum of the Pittsburgh commercial real estate market continued during the third quarter of 2012 as all major asset classes experienced a vacancy rate compression. A strong local economy coupled with a growing population is the primary driver of the positive economic trend. Throughout the third quarter of 2012, the Pittsburgh Metropolitan Statistical Area unemployment rate of 6.8% remained well below the national average of 8.6%. Additionally, as of June 2012, Pittsburgh had a year-over-year job growth rate of 1.3%, which is almost 80 basis points higher than the national average of .35%. As one might expect, these positive economic trends have spilled over into the real estate markets causing vacancy decreases and rental increases.
“Pittsburgh continues to gain national and global attention in the investment real estate market sector,” said Gregg Broujos, Managing Director and Founding Principal at Colliers International | Pittsburgh. “Our market is no longer considered a secondary market by institutional investors and private equity firms, and is considered a primary target market. Due to our strong economic drivers and the fact that Pittsburgh is one of only three markets that has been noted by Reuters as fully recovered from the 2007-2009 recession, we continue to see strong growth in every sector of real estate.”