Genfor Real Estate's 2025 Year-End Review & 2026 Outlook
Pittsburgh Industrial Real Estate Market
As the market enters 2026, Pittsburgh’s industrial real estate fundamentals remain healthy and comparatively well positioned. Ongoing investment across energy, power, manufacturing, and infrastructure-driven industries, combined with limited new construction and improving tenant engagement, creates a foundation for cautious optimism and a more active market in the year ahead.
Leasing & Absorption
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Overall leasing activity stayed below historical averages, though momentum improved late in the year, with several large transactions closing in 3Q and 4Q.
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Leasing activity in the 10,000–25,000 SF range was the softest segment, a departure from historical norms. Activity in this range declined significantly – transactions are trending to be down over 30% from historical averages – as small and mid-sized tenants face higher costs, labor challenges, and longer decision timelines.
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Leasing activity in 2025 was notably driven by tenants supplying products to the power and data center industries. 5 of the 10 largest leases in 2025 were comprised of tenants in electric and power sectors, accounting for approximately 59% of total square footage leased among the top 10 lease transactions.
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Increased tenant touring activity in the Fall of 2025 suggests improving tenant engagement heading into 2026.
Rental Rates
- Rental rates remain stable, supported by the lack of overbuilding despite slower tenant velocity.
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Asking rents vary widely across the region, influenced by: available square footage, building age, functionality, location, and submarket dynamics.
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Available inventory composition in specific submarkets plays a significant role in pricing expectations with examples including:
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Cranberry Submarket – Heavier concentration of newer, smaller-bay product at higher rents
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Beaver County/Southern Submarkets – Older, heavier industrial inventory at lower rents
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New Construction
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The Pittsburgh market has avoided overbuilding, helping maintain balanced supply conditions relative to many peer markets.
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New development remained extremely limited. The 2025 new construction totals from a speculative and build-to-suit basis mark the lowest annual delivery totals of the past decade – just 32% (Spec) and 24% (Build-to-suit) of the 10-year historical average.
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Only 190,277 SF of new speculative space delivered in 2025, all of which was leased upon completion.
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Build-to-suit activity has increasingly shifted toward owner-occupied projects, particularly among manufacturing and industrial service users.
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Based on projects currently underway and planned, new supply is expected to remain light in 2026.
Investment Sales
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Investment sales activity improved in 2025, highlighted by two notable sales (460 Nixon Road and 79 North Industrial Park) both trading above $30 million – an activity level not seen since 2022.
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The lack of developer led leased Build-to-suit projects, which helped drive the investment sales market in 2020 – 2022, contributed to the slowdown in sales activity.
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Improved pricing alignment between buyers and sellers may support increased sales activity in 2026 for both owner/user and investment sales.
