Vacancy remains well below the U.S. average; limited supply and a stable tenant base sustain long-term market balance.
PITTSBURGH, PA – October 2025 — The Western Pennsylvania industrial market continues to demonstrate remarkable consistency, holding vacancy at 5.20% in the third quarter, far below the national rate of 7.2%. According to the latest Industrial Intel report from Lee & Associates of Western Pennsylvania, leasing volume reached 897,000 square feet, the strongest quarter of 2025, while asking rents inched up 1.4% to $7.82 per square foot.
“We don’t see wild swings here, just steady, consistent performance because of the makeup of the market and the types of tenants attracted to Western Pennsylvania,” said Heather Kreiger, CCIM. Kreiger is a Principal and Regional Research Director for the Lee & Associates Pennsylvania offices. “That stability has been a defining characteristic of this region for several years.”
The report notes that Class A vacancy fell to 4.54%, marking the lowest level in five years, while Class B and C buildings experienced modest upticks in availability. Much of the new vacancy stemmed from smaller, sub-50,000 SF Class C spaces typical of the local flex-industrial market serving smaller manufacturing and warehousing users.
With just 541,000 SF under construction region-wide, most of it build-to-suit, the region’s supply pipeline remains limited. This restrained development environment continues to support tight conditions even as leasing moderates compared with the high-volume years of 2021–2023.
Western Pennsylvania’s industrial footprint totals about 170 million square feet across buildings 20,000 SF and larger, compared with 670 million square feet of warehouse product 100,000 SF and greater in Eastern Pennsylvania. That smaller scale and its strong base of local and regional users helps keep Western PA’s market balanced and less susceptible to national volatility.
“It’s been slow and steady progress for several years now,” Kreiger added. “I don’t expect large swings in vacancy or rents because new construction is largely build-to-suit, and the supply of speculative space remains limited.”
The Q3 2025 Industrial Intel report concludes that steady fundamentals are expected to persist through early 2026, with incremental rent growth, minimal vacancy movement, and ongoing stability as the market continues its slow-burn trajectory.
About Lee & Associates
Lee & Associates is a full-service commercial real estate firm with offices throughout North America. The Western Pennsylvania office, located in downtown Pittsburgh, provides brokerage, investment, and advisory services across the industrial, office, retail, and land sectors.
MEDIA CONTACT:
Heather Kreiger, CCIM
Principal, Regional Research Director
Lee & Associates of Western PA
hkreiger@lee-associates.com