June 4, 2025
Pittsburgh Industrial Real Estate Market Overview
Following a relatively subdued year for transaction activity in 2024, early 2025 showed encouraging signs, with increased momentum in January and February. However, this strong start was met with significant headwinds as macroeconomic policy shifts introduced uncertainty leading to a slowdown in recent transaction activity. Looking ahead, we expect transaction velocity to accelerate in the second half of 2025 as delayed investment decisions are made and more projects are green-lighted.
Market Notes: Leasing Activity
- Leasing performance during Q1 2025 was consistent with historical averages.
- The 2024 downturn—marked by a 28% drop in volume versus the prior six-year average—was primarily due to a reduction in leases above 75,000 SF.
- Notably, there were five leases exceeding 75,000 SF that were executed in Q1 2025, which matched the total number of leases of that size in all of 2024. While this is encouraging, the momentum in January and February of 2025 has decreased, primarily due to economic uncertainty. We expect the market to accelerate in the second half of the year.
- Leasing activity in the 10,000 SF to 50,000 SF range remained steady in Q1 2025, accounting for 60% of the new deals. Deal velocity in this segment was consistent with the seven-year historical average, reinforcing its role as the market’s most stable and resilient size category.
