Pittsburgh Office Market
The vacancy rate remained stable in the first quarter of 2024: however, the Oakland/East End submarket had a significant decrease in availability with the expansion of Duolingo. While Class A asking rates remained relatively stable since year end 2023, Class B rates have been on a continual rise for the last three consecutive quarters. Sublease space made up 3.5% of the total availability for the office market in first quarter of 2024 which is slightly lower than end of 2023. The total current under construction inventory is less than 1% of the total market inventory. Most new leasing activity appears to be tenants opting to locate to higher quality space with modern amenities to retain and attract new employees.
Pittsburgh Industrial Market
New construction starts remain at a standstill this quarter given the rise in interest rates, tightening credit and increased construction costs. Despite positive leasing activity, market-wide vacancy increased slightly as several large companies closed or vacated their buildings. Higher tenant improvement costs continue to be a headwind for leases in new Class A inventory.
Download Pittsburgh Industrial Market Report 1Q24