Pittsburgh Office Figures Q4 2022

Market Summary

‒ Office vacancy rates fall to 15.5% as the demand for office space persists with employers pushing for a continued return to work.

‒ Leasing activity for the quarter totals to over 294,000 sq. ft. as Q4 posts positive absorption of 108,278 sq. ft., the highest posted absorption since Q4 2020.

‒ The Pittsburgh office construction pipeline remains strong at over 1.4 million sq. ft. as companies continue the demand for Class A space. More than 65% of the current pipeline exists in the CBD and Downtown Fringe submarkets.

‒ Market rents rise to $25.10 per sq. ft., up from $23.42 year-over-year. Class A space rents remain strong as they post over $29 per sq. ft. in Q4 2022.

Tenants in the Pittsburgh market continue to demand less space for their employees to accommodate the hybrid work model. Despite demand for less space, the flight to quality trend is exhibited as over 68% of leasing activity in Q4 2022 was signed in Class A office space, totaling to greater than 50% in 2022.