Q3 2014 Trending Upward

As expected the third quarter was an active quarter for lease executions. Net absorption for the quarter was 950,000 SF putting year to date absorption at just under 1,500,000 square feet. This already exceeds 2013’s total absorption of 1,150,000 square feet. With the current activity in the market there is no reason to think the trend will not continue into the fourth quarter. All indications are that 2014 will have a year end positive absorption that hasn’t been witnessed since 2008.

The only down side to this activity is we are still not seeing the market react with corresponding speculative development. Users (whether they be tenants or buyers) seeking quality space over 100,000 square feet now have only three options in the entire Southwest Pennsylvania market. We do see some light on the horizon with several hundred thousand square feet of speculative building in the pipeline, but this is just not enough to satiate the market’s appetite.

Click here to see the full Q3 2014 Industrial Market Report.