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Market Trend: Pittsburgh's Industrial Vacancy Decreases to 5.5%

Net Absorption Positive 467,764 SF in the Quarter
August 2, 2017
The Pittsburgh Industrial market ended the second quarter 2017 with a vacancy rate of 5.5%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 467,764 square feet in the second quarter. That compares to positive 197,651 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 102,897 square feet.

The Flex building market recorded net absorption of positive 256,294 square feet while the Warehouse building market recorded net absorption of positive 211,470 square feet in the second quarter 2017.

CoStar subscribers can access the NEW Industrial Underwriting Report to generate comprehensive asset analysis on more than 660,000 industrial properties featuring comparisons by rent and vacancy, market insights and forecasts, sale and lease comps and construction pipeline analysis.

Tenants moving into large blocks of space in 2017 include: Berlin Packaging moving into 252,000 square feet at 2300 Sweeney Dr - Bldg 1, Veritiv Operating Company moving into 153,000 square feet at 150 Thorn Hill Rd, and Packaging Corporation of America moving into 81,600 square feet at Allegheny Distribution Center.

Rental rates ended the second quarter at $6.13, an increase over the previous quarter.

A total of three buildings delivered to the market in the quarter totaling 151,500 square feet, with 395,570 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 5.1% from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.
  Continued Reading  Industrial Sales Hold as Overall CRE Volume Drifts Lower in First-Half

The information in this news report is based on CoStar’s Second Quarter 2017 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

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