Pittsburgh’s Office Market Continues to Tighten

With the rest of the country’s real estate portfolio just beginning to recover, the Pittsburgh office market has seen unprecedented success in terms of its vacancy rate. The overall vacancy rate for the market, at 8.1 percent, is one of the lowest in the country, but only begins to tell the story of how vibrant the market truly is. At no point in time during the last thirty years has our market been as healthy as it is today, with the potential for vacancy rates to dip even lower.

The number of large blocks (greater than 50,000 square feet) of class “A” space in downtown Pittsburgh can be counted on one hand, with only a limited number of new options appearing on the market. A tenant in the downtown market looking for more than 100,000 square feet has as few as four options, with one being a prominent sublease and another going to sheriff’s sale in the near future. Two projects, The Gardens and 350 Fifth Avenue, may add 300,000 square feet to the mix, but still won’t be able to answer the long term demands of the market.

Click here to read the full Q4 2013 Office Market Report