Q1 2014 Office Market Report
Activity in the office leasing market in Pittsburgh leveled off in the first quarter of 2014, but overall the market performance continues to exceed typical expectations for the region. The overall office vacancy rate in the region is up slightly to 8.3 percent from 8.1 percent at the end of 2013, while Class A office space in the CBD market has one of the lowest vacancy rates in the country at just 8.1 percent. The fundamentals reflect a tight office market and are testament to why Pittsburgh continues to attract serious outside consideration from institutional investors. A prime illustration is the recent acquisition of the venerable Union Trust Building by Boston based, The Davis Companies. The company’s immediate plans are to maintain the 517,000 square-foot building for office use, pending additional research into the market.
As Pittsburgh emerges from one of the coldest winters in recent memory, a number of positive economic news items have been published, which reflect continued momentum for the region and potential reasons why interest from the outside investment community will continue. For instance, the Pittsburgh Regional Alliance (“PRA”) recently announced that economic development deals increased by 12 percent during 2013 to a total of 302 throughout the 10-county region. In its March press release, the PRA stated that the deals or “wins” were related to “new facilities, expansions of existing companies, attraction/retention of companies and startups around Southwestern Pennsylvania.” The announcement by the PRA provides further evidence to Pittsburgh’s growing economy and substantiates interest from outside real estate investors.
Posted on May 9, 2014, in Economy, Landlord Representation, Office, Tenant Representation and tagged Colliers International | Pittsburgh, Commercial Real Estate, Office Market Report, Pittsburgh Commercial Real Estate. Bookmark the permalink. Comments Off on Q1 2014 Office Market Report.