Pittsburgh Industrial Figures Q4 2022

Market Summary

‒ The Pittsburgh industrial vacancy rate is down 10 basis points from Q3 to 4.1% in Q4 2022 while availability drops to 5.1% as demand for industrial space remains strong

‒ Industrial properties net positive absorption for the fourth straight quarter in 2022 at 292,439 sq. ft. in the fourth quarter. 2022 netted over 1.1 million sq. ft. in positive absorption throughout the year.

‒ The overall net market rent is $7.80 per sq. ft., up nearly $0.30 per sq. ft. year-over-year. The R&D/Flex subtype posts rents at $15.88/sq. ft. as the warehouse/distribution rents are $5.78 per sq. ft.

The Pittsburgh industrial market remains active as yearly absorption nets positive 1.1 million sq. ft. for the year. There is currently over 2.4 million sq. ft. of speculative construction underway in the Pittsburgh market, a record high. With construction totaling over 3.5 million sq. ft. there is a clear pipeline to meet the ongoing demand for class A industrial space. Market rents continue to rise in the Westmoreland County & West submarkets, $0.30 year-over-year, as they post positive absorption for the third straight quarter in 2022.