Pittsburgh Office Market Report
Transition Back to Workplaces Underway;
Employers Use Locational Factors to Attract Labor
Local firms make decisions on future operations. Pittsburgh's most prominent companies are beginning to reinstate in-person work models, resulting in movements to floor plans that better accommodate their needs. Many firms are reducing their footprints. However, the recent stability of asking rents, especially in the core, has led to smaller, high-end lease signings. GNC recently announced a relocation to a Class A property in the Strip District, exemplifying the flight-to-quality trend that is impacting demand for Class B/C assets downtown. Many operators in this segment are using concessions or improvements to strum demand. These efforts have been successful for some, as Class B/C vacancy in the core contracted since the start of last October. Some investors with older stock, like the owners of the former GNC building, are converting assets into multifamily units, taking vacant office stock off the market.