Raleigh-Durham industrial real estate market reports

Q4 2022

Industrial product in Raleigh-Durham remains in high demand as total vacancy is at a very low 2.6%. This high demand along with large increases in total investment activity over the past two years have resulted in 2.5 msf of industrial space delivered to the market in 2022. Total average asking rents reached a record high in 2022, while leasing activity and construction costs have remained high as well.

2.5 msf

Construction delivered

High demand for Triangle industrial property has resulted in a large amount of new space added to the market in 2022.

2.7 msf

Net absorption

Year-to-date the industrial market has recorded 2.7 msf of positive net absorption due to strong leasing activity throughout 2022.

 

13.7%

Direct asking rent

Asking rents increased by 13.7% year-over-year, bringing the overall direct average asking rate to a record high of $9.52 psf.

 

2.6%

Vacancy

High tenant demand and lack of available existing space brought total vacancy to 2.6% in the fourth quarter. New space brought to the market was quickly leased up, and few industrial spaces remained vacant.

$166 psf

Investment sales

Strong investor sentiment continued in industrial assets in Raleigh-Durham, translating to an average valuation of $166 psf in the Fourth quarter, up 84% since 2020. Despite rising interest rates, institutional and private investors will continue to pursue opportunities in Triangle industrial product.

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