First Quarter | 2017






Net Absorption for the Pittsburgh apartment sector was a positive 134 units by the end of Q1.


With all of the new inventory and new units still in lease-up, Pittsburgh rent growth has slowed, which is expected to most likely continue until the bulk of the new supply stabilizes.

With the new supply of apartment buildings coming online, landlords have less leverage to drive prices up because the supply is greater than the demand. 


Pittsburgh added almost 250 net rented units in Q1, with approx. 2,669 still in the pipeline.

Many of the new apartment projects are being constructed around Millennials demand for newer luxurious living, and as the baby boomers hit retirement their demand for luxurious senior living will also rise.



Retail net absorption was strong in Q1, with a positive 489,000 SF absorbed in the quarter.  

The strong level of absorption  has caused many new retailers to lease vacant space causing the vacancy rate to be at its lowest and rents to be at their highest.


The average quoted rental rate is up over the previous quarter levels and up from their levels four years ago in the Pittsburgh retail market.  Quoted rents ended Q1 at $13.25 per square foot per year.

Rent growth is expected to continue to grow as new corporate expansions and tech companies come to Pittsburgh, with these higher paying jobs retail sales are rising and vacancy is decreasing. 


There were 9 new retail buildings totaling 147,772 SF that were delivered to the market in Q1, with 628,151 SF of retail space still under construction at the end of Q1.

As vacancy lowers the demand for new retail space is increased and more development will be seen in the suburban areas east and south of Pittsburgh.



Net absorption for the overall Pittsburgh office market was a negative 221,740 square feet in Q1.

With the new businesses starting up in Pittsburgh, the level of absorption will cause the pace of completions to increase and vacancy to drop.


The average quoted rental rate for available office space was $20.94 per square foot per year at the end of Q1.  This represented a 1.3% increase in quoted rental rates from 2016 Q4.

The high demand for new amenities and renovated office space is giving owners the ability to increase rents and new out of town investors are seeing this as an opportunity to push the market higher.


There were 3 buildings totaling 158,341 SF that completed construction in Q1 and by the end of Q1, 716,990 SF of office space was still under construction.

The growing tech sector in Pittsburgh and higher incomes will support additional office demand, but also cause rents to continue to increase.



There was a net positive absorption of 205,704 SF in Q1.  In the Flex building market for Q1 there was a negative 20,939 SF absorption and for the Warehouse building market there was a positive 226,097 SF absorption.


The average quoted asking rental rate for available Industrial space was $6.08 per square foot per year at the end of Q1. This represents a 3.6% increase in quoted rental rates from the end of 2016 Q1.

As vacancy rates decline the demand for industrial space has become higher, causing a steady growth in rental rates over the years.


There were 4 industrial buildings totaling 106,061 SF that completed construction in Q1, while 484,150 SF of industrial space was still under construction at the end of Q1.

    The information in this report is from sources believed to be reliable; however, SVN | TRCA makes no representations or warranties, expressed or implied, as to the accuracy of the information.  Data source:  Costar, Real Capital Analytics, County Records, and personal knowledge.  Any recipient of this publication may not, without prior written approval of SVN | TRCA, distribute, disseminate, publish, or in any other way reproduce this publication or any of the information it contains.  SVN | TRCA does not imply direct representation in transactions described.