Press Release

Pittsburgh Office Rent Growth Continues Alongside Tech Job Growth, CBRE Tech 30 Report Finds

07 11月 2018

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Demand from technology tenants in Pittsburgh remains steady as the sector experienced an 8.9 percent increase in local high-tech job growth over the past two years, according to CBRE’s annual Tech-30 report, which measures the tech industry’s impact on office rents in the 30 leading tech markets in the U.S. and Canada.

"We have been seeing a steady increase in large lease transactions by large tech companies seeking to expand their presence close to our universities and in former industrial sites in the Strip District and Lawrenceville," said Jeffrey Ackerman, Managing Director, CBRE. "These companies are looking at the high-tech talent being produced in Pittsburgh, and it's driving economic growth."

Impact of Tech Job Growth on Office Markets
The influence of tech job creation on office market growth is pervasive across the U.S. and Canada, with eight of the Tech-30 markets posting rent growth of 10 percent or more between Q2 2016 and Q2 2018. Pittsburgh has experienced an 8.9 percent growth in tech jobs during the past two years, with the market’s average asking office rents increasing 1.9 percent from Q2 2016 and Q2 2018. During 2014 and 2015, Pittsburgh’s tech jobs grew 22.7 percent, correlating with a 7.3 percent office rent increase.

Strong demand combined with a limited supply pipeline, has tightened Pittsburgh’s Class A vacancy to 2.3 percent and pushed Class A lease rates to over $40.00 per sq. ft. in Oakland/East End, Pittsburgh’s predominant tech submarket.

Country-Wide Expansion of Large Tech Firms
Technology companies based in the top four tech headquarters markets—the San Francisco Bay Area, Seattle, Boston and New York—are expanding into new markets, creating more demand for office space and driving office rent growth in the beneficiary markets. Together, tech firms headquartered in these four markets have taken more than 25 million sq. ft. of space outside of their headquarters markets over the past five years, led by firms in the San Francisco Bay Area, which accounted for 18 of the 25 million sq. ft.

“As space availability in top tech submarkets continues to tighten, we expect large tech companies to continue to expand outside their headquarters markets—including further into secondary and even tertiary markets. Large tech company expansion into smaller markets will help foster innovation clusters, further boosting job creation and creating additional office demand,” said Colin Yasukochi, director of research and analysis for CBRE in the San Francisco Bay Area.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.