Q2 2013 Pittsburgh Office Market Report
The Pittsburgh market continued to outpace the national average in the second quarter of 2013 as the overall office vacancy decreased 0.1% to 8.0% compared to 17.0% nationally. Despite an average rental rate increase of $0.15 to $18.63 in the market, Pittsburgh remains a value to businesses in comparison to the nationwide average rental rate of $23.23 per square foot. Construction also continued to surge, with three buildings consisting of 358,000 square feet of office space delivered during the quarter and 1,376,855 square feet still under construction. Net absorption numbers were promising as well, with a positive 353,651 square feet in suburban markets and a positive 27,253 square feet in the Central Business
Learn more about Q2 2013 activity in the Pittsburgh office market.
More than 1,500,000 square feet of Class “B” and “C” office space has been taken off the market for conversion into residential and hospitality uses in the past couple of years. During this time, the former state office building, the Clark Building, the former Alcoa Headquarters, the former Verizon Building and 526 Penn Avenue have all been sold and either converted into residential use, or are awaiting redevelopment.
“This residential trend has added vibrancy to Pittsburgh’s Central Business District, positively impacting both the office and retail sectors of our market.” said Paul Horan, Founding Principal at Colliers International | Pittsburgh.
Posted on August 9, 2013, in Economy, Landlord Representation, Office and tagged Central Business District, Colliers International, Commercial Real Estate, Leasing, LEED, Office, Pittsburgh Commercial Real Estate. Bookmark the permalink. Comments Off on Q2 2013 Pittsburgh Office Market Report.