Pittsburgh Office Market Report

Pittsburgh shows signs of reset and improvement. After setting the record for space relinquishment in 2023, net absorption hit an all-time high last year. Two of the four largest submarkets by inventory — the Parkway West Corridor and Washington County — observed vacancy drops of over 300 basis points in 2024, contributing to the metrowide compression. Vacancy improvements also defied the typified urban-suburban divide, as both CBD and suburban rates fell by over 100 points last year. Instead, a quality divide was revealed. Class A vacancy dropped by 250 basis points in 2024 as the quantity and average size of leases for high-end space grew, while Class B/C fell only 30. Move-ins planned for later this year similarly favor Class A space over mid- and lower-tier space by a slight margin, seeking floorplans about three times as large on average. This is even more apparent in supply trends, as 2024 Class B/C deliveries fell to just 13.5 percent of the pre-pandemic average. Greater Downtown posting its strongest net absorption on record last year signals robust demand for high-end space in the urban core, while fewer suburban deliveries should reinforce modern assets outside the city center.