Pittsburgh office market forecast
Pittsburgh topped VentureBeat.com’s list of “Four U.S. Tech Hubs to Watch in 2018” and for good reason. Pittsburgh’s technology sector grew 12% over the past two years, ranking the region fourth largest among North America’s small tech markets with over 42,000 employees. This growth has increased demand for co-working spaces and pushed the renovation of more than 4.0 million s/f (msf) of office space by landlords looking to lure new tech tenants. The number of new construction projects breaking ground year-to-date (YTD) 2018 is up 103.8% over the same period 2017, posting just over 1,113,000 s/f (sf) of new inventory. Among the most substantial projects announced is the final phase of Bakery Square, a 234,000 s/f office building to be built for Philips’ Sleep and Respiratory Care regional headquarters. The company plans to move approximately 1,250 employees to the new location from its current facility in Murrysville, Westmoreland County. Occupancy is expected in Q3 2020. Though Philips’ move may be the largest relocation announcement in recent months, the company is following a trend among significant occupiers in the Pittsburgh region.