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Market Report

Pittsburgh Office Market Report

2024 Investment Forecast

Rising Vacancy Set to Continue, but Moderating
Sublet Trends Provide Silver Lining

Nationwide tech sector attrition to weigh on downtown fundamentals. Although construction in 2024 represents a sharp increase from the year prior, square footage is divided between just two projects, which should limit the impact of these deliveries outside of the Golden Triangle and Moon Township. As nearly all ongoing projects are slated for completion by the end of the second quarter, that incoming supply-side pressure will be minimal by mid-2024. Sublet vacancy showed signs of moderating entering January as well, which should mitigate the amount of space relinquished as the year progresses if this trend holds. Nevertheless, a broader long-term shift toward smaller floor plans will continue to put upward pressure on vacancy metrowide, a situation unaided by ongoing headwinds across the nation’s tech employers. Pittsburgh’s burgeoning innovation sector has been a major contributor to office leasing in the Greater Downtown and Oakland submarkets over the past decade. The stabilization of space demand within the city limits is likely contingent on the normalization of business formation in these fields.
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