Pittsburgh, PA - Office Market Overview
The Pittsburgh real estate market includes the Allegheny Center, Fairywood, and Hazelwood office submarkets. With a metropolitan population of over 2.3 million, Pittsburgh is the second-largest city in Pennsylvania.
Nicknamed the 'Steel City' and the 'City of Bridges', Pittsburgh's location at the junction of the Allegheny, Monongahela and Ohio Rivers attract not only traditional manufacturing business, but also the high-technology sector that drives the local demand for Class A office.
As of mid-2017, the Pittsburgh office market encompasses nearly 48 million square feet of existing office space in properties larger than 50,000 square feet. The healthcare, education, technology and financial business sectors help to create dynamic demand for commercial real estate in Pittsburgh.
Pittsburgh, PA - Office Inventory Description
Pittsburgh is home to world-renowned universities such Carnegie Mellon and the University of Pittsburgh that educate the skilled workforce that the city's growing high-technology businesses need. With a gross metropolitan product of over $143 billion annually, the demand for office space in Pittsburgh continues to grow each year. Nearly 54% of the office inventory in Pittsburgh is Class A or A+, while Class B office inventory accounts for another 44% of space to the market.
The Pittsburgh Central Business District office market boasts some of the strongest demand for Class A office space in the city. Located between Point State Park and Duquesne University, where the Allegheny and Monongahela Rivers meet, this submarket has portfolio office properties such as the Five Gateway Center, One PPG Place, and the Henry W. Oliver Building on Smithfield Street.
Pittsburgh, PA Commercial Inventory Breakdown
Office Spaces
Total: 52,693,262 SF
By square footage range:
- 50k to 100k SF: 5,045,668 SF / 9.58% of total office
- 100k to 500k SF: 28,534,296 SF / 54.15% of total office
- 500k to 1M SF: 13,265,917 SF / 25.18% of total office
- > 1M SF: 5,847,381 SF / 11.1% of total office
By class:
- Class A+: 5,360,658 SF / 10.17% of total office
- Class A: 21,548,561 SF / 40.89% of total office
- Class B: 19,292,132 SF / 36.61% of total office
- Class C: 720,243 SF / 1.37% of total office
Top 10 Largest Office Buildings
in Pittsburgh
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| U.S. Steel Tower | 600 Grant Street, 15219 | 2,336,272 | 1971 |
| BNY Mellon Center | 500 Grant Street, 15219 | 1,500,000 | 1984 |
| One Oxford Centre | 301 Grant Street, 15219 | 1,011,109 | 1983 |
| The Highline | 36 Terminal Way, 15219 | 1,000,000 | 2004 |
| 525 William Penn Place | 525 William Penn Place, 15219 | 942,665 | 1951 |
| One PPG Place | 1 PPG Place, 15222 | 900,000 | 1984 |
| Civic Arena Offices - Redevelopment | NWC Washington Place & Center Avenue, 15219 | 810,000 | n/a |
| The Tower at PNC Plaza | 300 5th Avenue, 15222 | 802,000 | 2015 |
| Heinz 57 Center | 339 6th Avenue, 15222 | 800,000 | 1914 |
| Fifth Avenue Place | 120 5th Avenue, 15222 | 778,000 | 1988 |
Most Recently-Built Office Buildings
in Pittsburgh
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| The Offices at 3 Crossings | 2545 Railroad Street, 15222 | 127,527 | 2018 |
| Burns White Center | 2525 Railroad Street, 15222 | 110,000 | 2017 |
| Tech Forge on 47th | 105 47th Street, 15201 | 67,910 | 2017 |
| Tower Two-Sixty | 260 Forbes Avenue, 15222 | 400,000 | 2016 |
| Bakery Office Two | 6425 Living Place, 15206 | 209,244 | 2016 |
| 3 Crossings - 2501 & 2555 Smallman Street | 2501 Smallman Street, 15222 | 128,011 | 2016 |
| Schenley Place | 4420 Bayard Street, 15213 | 105,000 | 2016 |
| The Bentley | 965 Greentree Road, 15220 | 44,000 | 2016 |
| The Tower at PNC Plaza | 300 5th Avenue, 15222 | 802,000 | 2015 |
| North Shore Place I & II | 358 North Shore Drive, 15212 | 120,000 | 2015 |
Pittsburgh, PA - Green Office Space
The 2017 National Green Building Adoption Index ranks Pittsburgh 26th among the 30 top markets, for percentage of green office space. Over the past 12 years, the market share of energy-efficient office buildings has increased from under 5% to 38%.
While less than 1% of the office buildings larger than 50,000 square feet in Pittsburgh are LEED-certified, nearly 3% are Energy Star-rated.
Awarded its first Energy Star rating in 2008, the BNY Mellon Center in the Pittsburgh Central Business District has recently achieved a score of 92 out of 100 possible certification points. This 1.5 million square foot Class A office building was originally built in 1984 and has 55 stories, lower floor retail, and underground parking.
Pittsburgh, PA's Top Office-Using Sectors
A recent report by the National Bureau of Economic Research named Pittsburgh the second-best U.S. city for intergenerational economic mobility, reflecting the shift from industrial to the high-technology, Fortune 500, and corporate offices that create demand for Pittsburgh commercial real estate.
- High-Technology – Demand for white-collar employment in Pittsburgh is created by high-technology companies such as Google, Apple, Facebook, Uber, Autodesk, and IBM.
- Education – The skilled workforce that high-tech employers demand comes from institutions such as Carnegie Mellon, the University of Pittsburgh, Duquesne University and the 65 other colleges and universities in the metro area.
- Corporate Office – Businesses with national and regional offices in Pittsburgh include Allegheny Technologies, Alcoa, Kennametal, Mylan Bayer USA, and Deloitte Touch Tohmatsu and are part of one of the top office-using sectors in the city.
- Fortune 500 Headquarters – PNC Financial Services, PPG Industries, U.S. Steel, The Kraft Heinz Company, and WESCO International all contribute to the demand for Class A office space in Pittsburgh.
Pittsburgh Demographics
Population
- Total Population305,012
- Male Population(48.9 %) 149,303
- Female Population(51.1 %) 155,709
- Median Age32.90
Income/Financial
- Average Household Income$66,639
- Median Household Income$44,092
- Median Income Under 25$19,769
- Median Income 25-44$55,158
- Median Income 45-64$53,128
- Median Income Over 65$30,507
News
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