Publication

Raleigh/Durham 2018 Q3 Office Market Report

Article

Contacts & Related Research

Image treatment

LEASING BELOW LONG-TERM TRENDS

Tenants have leased 2.1 million square feet (msf) in the four most recent quarters, well below the long-term average of 4.0 msf leased each year.

AVAILABILITY RATE INCREASES

The overall availability rate for the Raleigh/ Durham region rose by 70 basis points to 13.5% in the third quarter. The Class A availability rate posted a more moderate 20 basis point increase to 13.6%.

RENT PUSHES HIGHER

The overall gross asking rent for the region inched up by 1.0% to $24.80 quarter-overquarter. Class A inched lower, falling by 0.4% to $26.66. The leasing of new product is removing some of the highest-price space from the market.

SALES SURGE

Office property sales during the first seven months of the year totaled $1.2 billion, a 168% increase compared to the first seven months of 2017.

“Availability and vacancy rates throughout the Triangle remain low and rental rates are pushing higher due to the lack of available space for medium to larger users.”

Tucker Shade, Executive Vice President

Read the full report