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Raleigh/Durham 2018 Q2 Office Market Report

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LEASING BELOW LONG-TERM TRENDS

Tenants have leased 2.3 million square feet (msf) in the four most recent quarters, well below the long-term average of 4.2 MSF leased each year.

AVAILABILITY RATE DECLINES SLIGHTLY

The overall availability rate for the Raleigh/ Durham region decreased by 10 basis points to 12.8% in second quarter. The Class A availability rate decreased by 50 basis points to 13.5%.

RENT SPIKES

The overall gross asking rent for the region rose by 3.1% to $24.62 quarter-over-quarter. Class A rent increased by 2.2% to $26.85.

SALES SURGE

Office property sales during the last six months (through May 2018) totaled $914 million, a 72% increase compared to the previous six–month total of $528 million.

“The Raleigh-Durham Office market continues to experience historically low vacancy rates coupled with increased rental rate appreciation. New construction is delivering at higher price points with substantial lease-up.”

Tucker Shade, Executive Vice President

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