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Regional Summaries

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Pittsburgh, PA

Apartment
Vacancy remains low in the 88,800-unit Pittsburgh apartment market, but it is higher than it once was. The vacancy rate was 3.8% for the fourth quarter of 2015, up 20 basis points for the period and 60 over the year. With 677 units completing construction in January 2016, the vacancy rate increased to 4.2% that month despite about 300 units of net absorption. Rent gains remain moderately positive. In 2015, the average asking rent increased 2.7% to $961 per month, with the average effective rent up 2.4% to $913 per month. Rents fell 0.1% by both measures in the fourth quarter, but they increased by 0.6% asking and 0.5% effective in January 2016. VIEW APARTMENT LISTINGS >
Industrial
After a surge in 2011, before the price of natural gas fell, demand has been limited in the 60-million-square-foot Pittsburgh warehouse/distribution space market, but new supply has been nearly absent. In 2015, for example, no new space was added, and though net absorption totaled just 249,000 square feet, the vacancy rate fell 40 basis points to 8.9%. The rate was essentially unchanged in the fourth quarter. Average rents increased 0.7% by both measures for the quarter and 1.4% for each over the year to $4.47 psf asking and $4.20 psf effective. The 9.6-million-square-foot local Flex/R&D market is also seeing increased activity. The 80,000 square feet of new supply in 2015 was met with minus 29,000 square feet of net absorption, and the vacancy rate increased 90 basis points to 20.9%. It was 20.5% in January 2016. The average asking rent increased 1.0% in 2015 to $7.83 psf, with the average effective rent up 1.1% to $7.23 psf. Rents increased 0.5% and 0.6%, respectively, in the fourth quarter, with the effective average up a penny in January 2016. VIEW INDUSTRIAL LISTINGS >
Office
The 52.1-million-square-foot Pittsburgh general purpose, multi-tenant office market remained stable in 2015 despite a press of new supply. The fourth quarter vacancy rate was up just 10 basis points for the quarter and down 20 over the year to 16.1%. The vacancy rate edged up to 16.2% in January 2016. Rents continued to edge up. Both the average asking rent and the average effective rent increased 0.5% in 2015 despite a 0.1% decrease in the fourth quarter. The year-end readings were $21.42 psf asking and $18.12 psf effective. Overall rents were flat in January. VIEW OFFICE LISTINGS >
Retail
The 17.85-million-square-foot Pittsburgh community-neighborhood shopping center market had a solid year in 2015. The 199,000 square feet of new supply was balanced by 180,000 square feet of net absorption, and the vacancy rate edged up just 10 basis points to 7.6%. The 54,350-square-foot Block A at McCandless Town Center completed construction in October, but fourth quarter net absorption totaled 130,000 square feet, and the vacancy rate fell 40 basis points during the period. The asking and effective averages were $16.95 psf and $14.81 psf in the fourth quarter, up 1.9% and 2.0% over the year and 0.8% and 0.9% for the quarter alone. VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

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