Pittsburgh Office Market Report
Medical Tenants Drive Demand at Local Healthcare Hub While Central Pittsburgh Faces Hurdles
Oakland a bright spot in a clouded office sector. The pandemic has weighed on office fundamentals across Pittsburgh, with the exception of Oakland. The submarket is home to the University of Pittsburgh Medical Center, where numerous healthcare and life science tenants have preserved office demand, as such work cannot be done remotely. In contrast to the market’s 180-basis-point jump, Oakland’s vacancy rate fell 190 basis points last year to 3.3 percent, a fraction of the metrowide rate. Tight availability in the submarket has in turn prompted greater development, with inventory set to grow by 8 percent over the next two years. The healthcare hub is nonetheless expected to outperform this year as firms in other industries evaluate space needs.