PITTSBURGH — Confusion over changing restrictions, coupled with uncertainty around COVID-19, have created a noticeable gap and left quite a few office spaces and buildings in downtown Pittsburgh vacant.
“Right now, it’s certainly softer than it was before the pandemic,” said Gerard McLaughlin, executive managing director of Newmark.
Newmark real estate firm in downtown released new data showing that fewer companies are occupying office space.
The vacancy rate jumped to 20.2 percent, which is more sublease space than ever before at 2.2 million square feet.
In pre-pandemic times, the vacancy rate was just over 17 percent.
Officials at Newmark say companies have shied away from office buildings due to work-from-home models and general safety concerns.
“Nobody wants to put their employees in a position that would be hurtful to them,” said McLaughlin.
The Pittsburgh Downtown Partnership has taken notice of the sheer volume of fewer people and workers frequenting the city.
It’s now looking at creative ways to fill vacancies and is talking with elected officials about the next step.
“Maybe take some of those historic office properties and talk about converting into residential,” said Jeremy Waldrup, president and CEO of the Pittsburgh Downtown Partnership.
Waldrup says workers and people are starting to slowly come back to the area.
He says it shows the downtown’s future is bright.
In an effort to entice companies and potential renters, some landlords are offering free rent of several months, signing bonuses and deep discounts to lease office space.
“I think it’s certainly helping. If you are a commercial office tenant, and you’ve kinda been looking at downtown and have said in the past it’s a bit too expensive — I think there’s some real opportunity now.”
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