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LEASING BELOW LONG-TERM TRENDS
Tenants have leased 2.1 million square feet (msf) in the four most recent quarters, falling short of the long-term market average.
AVAILABILITY RATE PUSHES HIGHER
The overall availability rate for the Raleigh/ Durham region rose for the third consecutive quarter, rising by 70 basis points to 13.6%. The Class A availability rate increased by just 10 basis points to 12.6%.
STABLE RENT
The overall gross asking rent for the region was essentially flat, inching down from $24.72 to $24.71. Class A rent dipped from $26.26 to $26.22.
SALES SURGE
Office property sales during the first eleven months of 2018 totaled $1.9 billion, a 105% increase compared to the same period of 2017.
“Recent acceleration in development activity is starting to push availability rates a bit higher. This new supply continues to raise the bar in terms of tenant expectations, while also boosting asking rent.”
Tucker Shade, Executive Vice President