INDUSTRIAL MARKET UPDATE
Headwinds and Uncertainty
percent in March and June was at 9.1 percent. Economists are unable to reach consensus on if/when inflation will peak. The Federal Reserve is committed to raising interest rates until inflation is tamed with the hope of avoiding an economic recession in the process. GDP has slowed in 2022 but has not yet been defined as a recession. With that as a backdrop, it appears the industrial market has not been materially impacted, although there are signs that there may be a pause in decision-making (if not demand) to allow
macroeconomic factors to work through the system. With respect to the Pittsburgh industrial market, the results of the second quarter of 2022 remained favorable, and the outlook for the balance of 2022 remains cautiously optimistic. The overall market tightened slightly in the second quarter of 2022, with occupancy at 94.0 percent and Class A occupancy nearing 98 percent. Overall absorption was positive at 440,000 square feet, with Class A
The first seven months of 2022 started off in a very challenging way, as concerns about rising interest rates, inflationary pressures and oil prices have disrupted the markets. The 10-Year Treasury finished 2021 at 1.52 percent; reached 2.32 percent at the end of the first quarter of 2022; peaked at 2.98 percent at the end of the second quarter and ended July at 2.69 percent. The CPI Index finished 2021 at 7.0 percent, reached 8.5
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