Pittsburgh Commercial Office Space for Rent

Q4 2025

Pittsburgh Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Pittsburgh commercial real estate (CRE) market is navigating a complex recovery period as 2025 draws to a close [2, 3]. The Office sector faces ongoing headwinds with vacancy near 22%, driven by rightsizing and a flight to quality [1, 2]. Industrial markets are stabilizing after a supply-driven softening, with vacancy ticking up to 7% but demand holding steady [3]. Retail is a bright spot, with vacancy tightening to 4.5% and rent growth accelerating [4]. Multifamily is absorbing a wave of new deliveries, with occupancy stabilizing and rent growth remaining positive [5].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days (110 total deals):

  • Retail/Storefront led market activity with 72.73% of all searches [7].
  • Warehouse was the second most active sector at 19.09% [7].
  • Office accounted for 9.09% of total search volume [7].

Office Market

Market Overview Pittsburgh's office market continues to adjust to structural shifts in demand, with vacancy rates elevated but leasing activity showing signs of life in premium assets.

  • Vacancy & Availability: The overall vacancy rate stands at 21.9%, with Class A vacancy slightly lower at 18.5% [1]. Availability remains high as tenants downsize and consolidate [2].
  • Net Absorption: Net absorption was negative (250,000) SF in Q3 2025, extending a trend of contraction [1]. However, smaller deals (<5,000 SF) remain active [7].
  • Rental Rates: Asking rents have held steady at $24.50 per SF (Full Service), with landlords offering significant concessions to attract tenants [1].
  • Market Drivers: TenantBase data indicates a preference for shorter lease terms, with 40.00% of office inquiries seeking leases of Less than one year [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 9.09% of total search volume [7].
  • Lease Term Preference: Demand is split between short-term flexibility and mid-term commitments:
    • Less than one year: 40.00% of deals [7].
    • 2-3 Years: 60.00% of deals [7].
  • Size Requirements: The average lower size requirement for office space is 1,000 SF for both short-term and 2-3 year leases, reflecting a market driven by smaller tenants [7].

Industrial & Warehouse Market

Market Overview The Pittsburgh industrial market is recalibrating after a period of rapid growth, with vacancy rising due to new supply but demand remaining healthy.

  • Vacancy & Rent: Vacancy rose to 7.0% in Q3 2025, up from 5.5% a year prior [3]. Asking rents have stabilized at $7.75 per SF (NNN) [3].
  • Demand & Supply: Leasing activity is steady, with logistics and manufacturing users driving demand [3]. The construction pipeline has moderated, which should help balance supply and demand in 2026 [3].
  • Leasing Highlights: TenantBase data shows strong demand for short-term leases, with 63.64% of warehouse inquiries seeking 1-2 Year terms [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 19.09% of total search volume [7].
  • Lease Term Preference: Demand is heavily skewed toward short-term flexibility:
    • 1-2 Years: 63.64% of deals [7].
    • 3-5 Years: 18.18% of deals [7].
    • 5+ Years: 9.09% of deals [7].
  • Size Requirements: The average lower size requirement for warehouse space is 4,000 SF for 1-2 year terms, while larger requirements for Less than one year averaged 2,500 SF [7].

Retail Market

Market Overview Pittsburgh's retail sector is performing well, with limited new construction supporting high occupancy rates and rent growth.

  • Vacancy & Availability: Retail vacancy dropped to 4.5% in Q3 2025, the lowest level in nearly a decade [4]. Availability is scarce in prime corridors [4].
  • Rental Rates: Asking rents have risen 3.2% year-over-year to $15.50 per SF (NNN) [4].
  • Construction: New retail development is minimal, which is keeping the market tight and driving competition for existing space [4].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 72.73% of all search volume [7].
  • Lease Term Preference: Retail tenants show a balanced appetite for terms:
    • 3-5 Years: 25.00% of deals [7].
    • 2-3 Years: 25.00% of deals [7].
    • 1-2 Years: 22.22% of deals [7].
  • Top Locations: Tenant interest is highest in Pittsburgh (City) (20 deals) and Monroeville (3 deals) [7].

Multifamily Market

Market Overview The multifamily market is stabilizing as the construction pipeline thins, leading to renewed rent growth and high occupancy.

  • Vacancy & Occupancy: Vacancy held steady at 5.8% in Q3 2025, with occupancy rates consistently above 94% [5].
  • Rents: Average asking rents rose 2.5% year-over-year to $1,275 per unit, driven by demand for affordable housing options [5].
  • Construction: The construction pipeline has shrunk to 2,000 units, a significant decrease from previous years, which will support tighter conditions in 2026 [6].
  • Investment: Sales activity remains cautious, but pricing has stabilized, offering opportunities for investors seeking steady yields [6].

2026 Outlook

Looking ahead to 2026, the Pittsburgh market is positioned for steady performance and gradual recovery.

  • Industrial Resilience: The industrial sector will continue to benefit from regional logistics demand, with vacancy expected to stabilize around 6-7% [3].
  • Retail Strength: Limited new supply will keep retail vacancy low and rents rising, making existing centers highly valuable [4].
  • Office Stabilization: While challenges remain, the office market is expected to find a floor as tenants take advantage of favorable terms and right-size their space needs [1].

Sources

  1. JLL: Pittsburgh Office Market Dynamics Q3 2025
  2. Newmark: Pittsburgh Office Market Overview Q3 2025
  3. Newmark: Pittsburgh Industrial Market Overview Q3 2025
  4. Marcus & Millichap: Pittsburgh Retail Market Report Q3 2025
  5. Yardi Matrix: Pittsburgh Multifamily Market Report – September 2025
  6. Berkadia: Pittsburgh Multifamily Report Q3 2025
  7. TenantBase Proprietary Market Data (Pittsburgh - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.