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Market Report

Pittsburgh Office Market Report

4Q 2023

Low Vacancy Around Academic Centers and
Limited Development Offer Positive Notes

Pockets of stable demand remain amid rising metrowide vacancy. More than 1.6 million square feet was relinquished to the market on a net basis from April to June, the most dramatic quarterly negative net absorption figure recorded in the metro since at least 2006. The Greater Downtown area represents the bulk of this increase, as the vacancy rate here jumped 290 basis points during the second quarter of 2023 alone. On a positive note, biotech demand facilitated by Pittsburgh’s academic research base has kept conditions tight in Oakland. This locale noted a 6.5 percent vacancy rate entering July, 980 basis points below the marketwide average. Highlighting the tech sector’s importance here, Apple occupied a 72,000-square-foot lease at The Assembly in April, indicating the company sees long-term expansionary potential in the market.
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