Raleigh-Durham industrial real estate market reports

An active pipeline is expected to provide some relief in lack of availability in the long term. There is currently 8.5 msf of industrial space currently under way in Raleigh-Durham, with 32% of active development pre-leased.

Raleigh-Durham continues to experience robust demand that is currently outpacing new deliveries. In the last twelve months, net absorption reached 3.4 msf and total leasing activity reached 1.0 msf in the second quarter of 2022.

Asking rents increased by 19.5% year-over-year, bringing the overall average asking rate to a record high of $9.03 psf. Average asking rents in flex product increased by 11% year-over-year.

High tenant demand and lack of available existing space brought total vacancy to 3.1% in the second quarter, as occupiers act swiftly to expand their footprint in the market and construction levels remain elevated.

Strong investor sentiment continued in industrial assets in Raleigh-Durham, translating to an average valuation of $156 psf in the second quarter, up 15% year-over-year. Despite rising interest rates, institutional and private investors will continue to pursue opportunities in industrial product in the Triangle.