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Market Report

Pittsburgh Office Market Report

2025 Investment Forecast

Contemporary Office Spaces Benefit Most From Sector
Recovery Amid an Overall Flight to Quality

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.

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