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Market Report

Pittsburgh Retail Market Report

2023 Investment Forecast

Tepid Development Keeps Metro Mostly in Balance;
Cost Advantage Attracts Out-of-State Buyers

Conservative construction pace allows recovery to carry on. Pittsburgh has seen a number of fitness and experiential retailers open their doors in recent years. In 2023, the city’s first-ring suburbs will accrue more of these operations, with Planet Fitness, K1 Speed Kart Racing and Ascend Rock Climbing among the largest anticipated move-ins. Many of these retailers were drawn here as the tech sector became a prominent aspect of the local economy, a fact that could begin to work against consumer activity. Much of this segment is expected to freeze hiring or downsize this year alongside the broader employment base, indicating demand headwinds are to come. Trends on the supply side are more positive, however. The languorous pace of stock expansion will continue, which has not exceeded 0.2 percent on an annual basis since 2020. Over 90 percent of the active pipeline is accounted for, further minimizing the impact on the market. Restrained development should facilitate a three-year availability low. In further cause for optimism, absorption will stay positive for a second consecutive year, the first such span since 2018.
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