Market Analysis
*Information provided by CoStar
1st Quarter 2009 Marketing Trends
Pittsburgh Office
The Pittsburgh Office market ended the first quarter 2009 with a vacancy rate of 11.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (231,540) square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 704,707 square feet. Rental rates ended the first quarter at $18.47, a decrease over the previous quarter. A total of three buildings delivered to the market in the quarter totaling 211,396 square feet, with 1,274,905 square feet still under construction at the end of the quarter.
Industrial Market
The Pittsburgh Industrial market ended the first quarter 2009 with a vacancy rate of 9.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (1,091,898) square feet in the first quarter. Vacant sublease space decreased in the quarter, ending the quarter at 238,401 square feet. Rental rates ended the first quarter at $4.77, a increase over the previous quarter. There was 247,030 square feet still under construction at the end of the quarter.
Retail Market
The Pittsburgh retail market experienced a moderate decline in market conditions in the first quarter 2009. The vacancy rate went from 7.0% in the previous quarter to 7.8% in the current quarter. Net absorption was negative (785,171) square feet, and vacant sublease space increased by 238,617 square feet. Quoted rental rates decreased from fourth quarter 2008 levels, ending at $13.15 per square foot per year. A total of eight retail buildings with 94,296 square feet of retail space were delivered to the market in the quarter, with 549,010 square feet still under construction at the end of the quarter.
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.
*Information provided by CoStar
