Tenant demand has been positive through the first three quarters of 2015, with the region recording more than 300,000 square feet of net absorption. However, headwinds are on the horizon as a number of corporate consolidations set to transpire over the next three years will place upward pressure on vacancy rates across the metro.

1. Corporate consolidations will place upward
pressure on office vacancy rates
Pittsburgh
• Tenant demand in Pittsburgh has been mixed over the last year as some industries have experienced
contractions, namely finance and energy, while others have recorded expansion, namely science and
technology. The net result has been positive though, with the region recording more than 300,000 square
feet of net absorption year-to-date. The downtown office market has been the primary beneficiary of
demand gains, with vacancy decreasing 1.4 percentage points year-over-year to 11.8 percent. However,
headwinds are on the horizon as a number of corporate consolidations set to transpire over the next
three years will place upward pressure on vacancy rates across the metro.
Source: JLL Research
Chart of the week: November 2, 2015
10%
15%
20%
2011 2012 2013 2014 YTD
2015
Suburban submarkets CBD & Fringe
Office Vacancy Rates