What’s fueling the shift in Raleigh-Durham’s office sublease market post-COVID?

– Both Class A and B sublease availability surged between Q1 2021 and Q1 2023, with Class A peaking at 2,921,772 square feet and Class B reaching 778,988 square feet—a trend likely driven by delayed pandemic effects. However, since 2023, the market has shown signs of stabilization as businesses reassess their space needs.

– Approximately half of all sublease space available is concentrated in the RTP/I-40 Corridor, driven by the area’s high concentration of tech-oriented companies. With these firms operating at just 45.9% of pre-COVID activity levels, sublease availability has remained persistently stagnant.

– At the current pace of decline, Class A sublease availability would take approximately 3 more years to return to its Q1 2020 level of 740,192 sq ft.