If you thought Pittsburgh didn’t have a lot of available office space these days, think again. According to real estate services company Oncor International, Pittsburgh, with a total office vacancy rate of 14.61 percent, ranks 6th among U.S. cities with the highest vacancy rates.
The top five, according to Oncor’s 1999 Mid-Year North American Office Market Report: Dallas/Fort Worth, Montreal, Chicago, Winston-Salem/Greensboro and West Palm Beach. Those with the lowest vacancy rates include San Francisco, at 4.33 percent, followed by Seattle, Boston, Portland and Washington, D.C.
Among 44 cities, Pittsburgh ranks 23rd in Class A market size, with 17,307,325 square feet of Class A space, Average Class A rental rates are $22.03 per square foot in the city and $20.74 a foot in the suburbs. Those prices put Pittsburgh at 28th in pricing. Topping that list is San Francisco, with a square foot of Class A space going for an average $44.53.
The study also included the following forecasts for Pittsburgh:
- Class A rents are increasing.
- Class A vacancy will decrease.
- There’s not enough speculative construction in the city.
- Suburban construction is strong but needed.
- Office building sales activity is strong.
- Office building sales prices are near record levels.
- The outlook for a healthy, growing, reasonably balanced office market is guardedly optimistic.
For more information on the study’s local findings, contact Oncor International at (202) 452-1852 or its Web site at www.oncorintl.com.
Daniel Bates
