What key trends impacted the Pittsburgh Industrial Market in Q1 2023? Find out in our Five Fast Facts infographic below.
- The Plunge of Inflation
In May 2023, inflation took a notable plunge, resembling a deflating balloon. The year-over-year (YOY) inflation rate dwindled to 4.0%, making its lowest point since March 2021. This decline brought much-need relief to consumers and signaled a positive trend in economic stability.
- Steady Net Absorption
Despite the challenges, net absorption stood firm. For the quarter, a solid 465,000 square feet (sf) found tis place in the hands of eager occupants, propelling the year-to-date absorption to a milestone of just over 1 million square feet (msf).
- A Vibrant Construction Development Pipeline
Behind the scenes, the industrial landscape buzzed with activity. A robust construction pipeline boasted nearly 4.8 msf of industrial projects currently underway. Moreover, the second quarter of 2023 witnessed the deliver of over 300,000 sf of industrial space.
- Manufacturing Leases Lead the Charge
Within the industrial sector. The manufacturing grade took center stage. Leasing activity buzzed with excitement as just shy of 350,000 sf of space found eager takers in the manufacturing grade buildings. This surge accounted for a commanding 50.5% of all leasing activity for the quarter.
- Vacancy Drops Despite New Deliveries
Despite over 300,000 sf of vacant industrial space entering the market, the overall vacancy rate in the industrial landscape surprisingly dropped by 20 basis points (bps), from 4.7% to 4.5%
