Market Analysis
3rd Quarter 2008 Marketing Trends
Pittsburgh Office
The Pittsburgh Office market ended the third quarter 2008 with a vacancy rate of 11.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 78,183 square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 542,522 square feet. Rental rates ended the third quarter at $18.54, a decrease over the previous quarter. A total of 1 building was delivered to the market in the quarter totaling 4,500 square feet, with 1,104,640 square feet still under construction at the close of this quarter. At the end of the third quarter, total office inventory in the Pittsburgh market area amounted to 111,043,187 square feet in 5,157 buildings.
Industrial Market
The Pittsburgh Industrial market ended the third quarter 2008 with a vacancy rate of 10.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 930,657 square feet in the third quarter .Vacant sublease space decreased in the quarter, ending the quarter at 349,137 square feet. Rental rates ended the third quarter at $4.59, a decrease over the previous quarter. A total of 1 building delivered to the market in the quarter totaling 20,000 square feet, with 432,018 square feet still under construction at the end of the quarter. At the end of the third quarter, the total overall Industrial inventory in the Pittsburgh market area amounted to 134,344,091 square feet in 3,519 buildings.
Retail Market
The Pittsburgh retailer market experienced little change in market conditions in the third quarter 2008. The vacancy rate remained 6.6% in the third quarter. Net absorption was positive 347,678 square feet, and vacant sublease space increased by 13,393 square feet. Quoted rental rates decreased from second quarter 2008 levels, ending at $13.01 per square foot per year. A total of 6 retail buildings with 351,458 square feet of retail space were delivered to the market in the quarter, with 1,354,113 square feet still under construction. At the end of the third quarter, the total retail inventory in the Pittsburgh market are amounted to 105,481,896 square feet in 6,944 buildings and 509 centers.
2nd Quarter 2008 Market Trends
Pittsburgh Office
The Pittsburgh Office market ended the second quarter 2008 with a vacancy rate of 11.8%. The vacancy was down over the previous quarter with net absorption totaling a positive 648,678 square feet. Vacant sublease space increased, ending at 358,627 square feet. The average quoted rental rate was $18.55 per square foot per year representing a 0.9% increase in rates from the end of the first quarter. New constructed consisted of 2 buildings being completed and delivered to the market totaling 305,600 square feet with 967,855 square feet still under construction. At the end of the second quarter, the total overall office inventory in the Pittsburgh market area amounted to 110,249,823 square feet in 5,094 buildings.
Industrial Market
The Pittsburgh Industrial market ended the second quarter with a vacancy rate of 11.8%. The vacancy rate was unchanged over the previous quarter, with net absorption totaling a positive 41,337 square feet. Vacant sublease space decreased, ending the quarter at 388,995. Average quoted asking rental rate for available Industrial space was $4.61 per square foot representing a 2.4% increase in quoted rental rates from the end of the first quarter. During this quarter no new buildings were constructed and delivered to the market, however, 406,907 square feet of industrial space is still under construction. Total industrial inventory for the Pittsburgh market area amounted to 127,478,780 square feet in 3,439 buildings.
Retail Market
The Pittsburgh Retail market experienced not much change in market conditions in the second quarter of 2008. The vacancy rate remained at 6.5%. Over the past four quarters, the market has seen an overall no change in vacancy rate. Net absorption was a positive 64,663 square feet. Vacant sublease space increased by 47,381 square feet. Average quoted asking rental rates are up over previous four quarter levels. Quoted rents ended the second quarter at $15.59 per square foot per year. This represents a 0.1% increase in rental rates, and a 9.17% increase from four quarters. New construction consisted of 5 buildings being completed and delivered to the market with 2,151,121 square feet of space still under construction. Total inventory in the Pittsburgh Retail market amounted to 104,527,073 square feet in 6,684 buildings and 504 centers.
*Information provided by CoStar
