While leasing volume accelerated in the first quarter of 2024, it remains muted relative to pre-pandemic levels. Just over 315,000 SF of space was leased over the past 12 months, which is well below the annual average in the five years leading up to the pandemic. As tenants continue to relocate and downsize, net absorption remains in the red over the near term, even in what is considered one of Pittsburgh’s most active submarkets pre-pandemic. Although vacancy rises at a gradual pace, there are no projects under construction in the Greater Downtown submarket which will provide for a hedge against dramatic increases in vacancy for the foreseeable future.
