What key trends impacted the Pittsburgh Office 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% marking its lowest point since March 2021. This decline brought much-needed relief to consumers and signaled a positive trend in economic stability.
- A Tale of Contrasting Landscapes
Net Absorption in the Greater Central Business District (CBD) faced a substantial decline, reaching negative 720,000 square feed (sf) for the quarter. In contrast, suburban submarkets thrived with a robust net absorption of 211,000 sf during the same period.
- Absorption Takes a Dark Turn
The office market faced a challenging absorption landscape in Q2. For the quarter, it witnessed a staggering decrease of 510,000 sf, leaving the year-to-date figures on the brink of despair at just under negative 800,000 sf.
- CBD Leases on Par
Despite the challenging net absorption figures, the CBD remained a focal point to leasing activity, registering three of the top four leases of the quarter. Notably, the largest lease encompassed just over 30,000 sf, showcasing the continued appeal and demand for CBD office space.
- The Rising Tide of Vacancy
As the quarters passed, the specter of vacancy continued to loom larger. The vacancy rate swelled by 80 basis points (bps), climbing from 14.9% to 15.7%. The CBD vacancy rate witnessed and even steeper ascent, surging by 230 bps to reach 19.4% at the close of the quarter.
