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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Sources: Allegheny Conference on Community Development; Imagine Pittsburgh; National Geographic Traveler, Sperling’s BestPlaces; Brookings Institute; The Economist; Bloomberg Businessweek; The Fiscal Times; Pittsburgh Post-Gazette, Pittsburgh Business Times; Pittsburgh Post-Gazette
Pittsburgh has a new and amazing year ahead of itself. Our reinvented economy is among the factors offering plenty to celebrate, as 2013 marks the 30 year anniversary of Pittsburgh’s economy hitting bottom, with the steel industry collapse crippling the region. Today, Pittsburgh is progressing, and continues to be credited as a city renewed, boasting a diverse economy, growing youth population and stable real estate market. Whether recognized by a “Best of the World” place to visit by National Geographic Traveler, paid tribute in Sperling’s BestPlaces as the best city to relocate to in the United States, or honored as one of just three metros in the nation that have fully recovered from the Great Recession by Brookings’ Global Metro Monitor, Pittsburgh has earned top honors as a great place to live, work and play. Even the Today Show is on board, recently announcing that the travel website/magazine Jetsetter listed Pittsburgh among the top travel spots around the world for 2013, and The Fiscal Times has recently honored Pittsburgh as one of the 15 best cities to grow old in.
From our family at Colliers International | Pittsburgh to yours, we wish everyone a wonderful holiday and very happy new year.
From the Pittsburgh Symphony Orchestra’s Holiday Pops concerts of holiday favorites, to dueling theatre shows at the Pittsburgh Musical Theater’s “A Lyrical Christmas Carol” and Pittsburgh CLO’s “A Musical Christmas Carol”, Kennywood Holiday Lights aglow, Downtown Pittsburgh’s European Holiday Market at Market Square, and more, the Holiday weekend is full of activities that the whole family can enjoy together.
Click here for the weekend activities list.
“Pittsburgh has been named a top 10 city in many categories,” said Gregg Broujos, Managing Director & Founding Principal at Colliers International | Pittsburgh. “Add one more: it’s one of the most beautiful Christmas time cities in the world. From the crèche at the US Steel Building Plaza to the Frick Estate decorations to the ice rink at PPG, it’s hard to imagine a more wonderful holiday setting.”
Market Square offers a variety of new dining and holiday shopping experiences close to several local retailers, as well as the ice skating rink at PPG Place and the cultural district. With many great restaurants and entertainment venues, shoppers can maximize their enjoyment by combining great shopping with fine dining and theatre.
Pittsburgh office market performance continues to be strong, with an increased amount of activity and tenant movement. The office vacancy rate is steadily declining on a quarter over quarter basis, as Class A buildings continue to fill with new leases, expansions and renewals. Plans of new construction are on the horizon, employment rates are improving, and there is solid momentum in absorption. Pittsburgh is performing well ahead of the US average, and is expected to continue in a positive direction into the next quarter. Under-utilized Class B and C properties are being converted into residential use, and demand for a mixed-use “live-work-play” community continues to be the focus for adding vibrancy to downtown Pittsburgh and lifting occupancy rates. The total number of city residents has increased from 1,000 seven years ago, to over 7,000 today. High performance banking, healthcare, energy and education sectors are driving positive growth, along with favorable trends in housing recovery and residential opportunities downtown.
“The Pittsburgh commercial office market continues to be strong. While some local companies are still waiting to see what the upcoming “Fiscal Cliff” will mean to their businesses, others are moving forwarded with planned relocations and expansions,” said Patrick Sentner SIOR, Founding Principal at Colliers International | Pittsburgh.
“We remain encouraged in the strengthening of Pittsburgh’s commercial real estate market, and are poised to assist our clients through leveraging our breadth of knowledge and world leading Colliers platform and personnel,” added Paul Horan, Founding Principal at Colliers International | Pittsburgh.