Quarterly Market Update - Q2 2025 Market Stats

Pittsburgh Industrial Real Estate Market Overview

Following a subdued period of transaction activity from 2023 through 2024, early 2025 opened with a very strong start in January. However, this strong start slowed as macroeconomic & policy uncertainty had a chilling effect on leasing activity starting in Q1 2025 as tenants exhibited caution. This trend is not unique to Pittsburgh as the national industrial vacancy rate is increasing, the national net absorption rate has decreased, and over 70% of industrial markets in the US are experiencing higher availability rates. 

What is unique to Pittsburgh is several recent events and trends that will have a very positive impact on our regional economy and local industrial market. Those include:

• The formal closing of the Nippon-U.S. Steel transaction in June
• The Pennsylvania Energy & AI Summit in July
• Certain regional strengths that position the Pittsburgh Marketplace very well for near term economic investment
• A general lack of local overbuilding, which is not the case in many other industrial markets

We expect tenant activity to pick up in the Fall of 2025 as delayed investment decisions are made and more projects are green-lighted.

 

View the Full Q2 2025 Market Update