PITTSBURGH METRO Q2 2017

COMMERCIAL REAL ESTATE SUMMARY

MultifamilyMULTI-FAMILY

RENTAL RATES

Rental rates in the Pittsburgh Market are significantly lower in Q2 than the rest of the nation, and occupancy rates have stayed around 94% for the past six years, as population growth and the new apartment supply has been stable.

INVENTORY & CONSTRUCTION

By 2017 Q2, nearly 2,700 units came online in the Pittsburgh Market. By the end of Q2, there were approx. 3,600 units still under construction and approx. 6,700 units still in the planning stage.

ABSORPTION

Net Absorption for the Pittsburgh apartment sector was a positive 345 units by the end of Q2.

Office OFFICE

RENTAL RATES

The average quoted rental rate for avaliable office space was $21.26 per square foot per year at the end of Q2.  This represented a 1.3% increase in quoted rental rates from 2017 Q1.

INVENTORY & CONSTRUCTION

By 2017 Q2, nearly 2,700 units came online in the Pittsburgh Market. By the end of Q2, there were approx. 3,600 units still under construction and approx. 6,700 units still in the planning stage.

ABSORPTION

Net absorption for the overall Pittsburgh office market was a negative 703 square feet in Q2.

RetailWhite RETAIL

RENTAL RATES

The average quoted rental rate increased in Q2 compared to 2017 Q1, ending Q2 at $13.87 per square foot per year.

INVENTORY & CONSTRUCTION

There were 15 new retail buildings totaling 214,950 SF that were delivered to the market in Q2, with 455,163 SF of retail space still under construction at the end of Q2.

ABSORPTION

Retail net absorption was strong in Q2, with a positive 427,671 SF absorbed in the quarter.

IndustrialWhite INDUSTRIAL

RENTAL RATES

The average quoted asking rental rate for avaliable Industrial space was $6.13 per square foot per year at the end of Q2, an increase over the previous quarter.

INVENTORY & CONSTRUCTION

There was a net positive absorption of 467,764 SF in Q2.  In the Flex building market for Q2 there was a positive 256,294 SF absorption and for the Warehouse building market there was a positive 211,470 SF absorption.

ABSORPTION

There were 3 industrial buildings totaling 151,500 SF that completed construction in Q2, while 395,570 SF of industrial space was still under construction at the end of Q2.

 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.