Raleigh-Durham industrial real estate market reports
The momentum in Raleigh-Durham’s industrial market is not slowing, as leasing activity reached 1.0 msf in the first quarter. Elevated levels of construction and the demand for industrial space have driven the overall vacancy rate to 2.7%. Total average asking rents, lease term escalations and construction costs continue to rise, particularly for tenants actively looking for smaller space requirements.
An active pipeline is expected to provide some relief in lack of availability in the long term. There is currently 7.8 msf of industrial space currently under way in Raleigh-Durham, with 31% already spoken for.
Raleigh-Durham continues to experience robust demand that is currently outpacing new deliveries. In the last twelve months, net absorption reached 3.5 msf and total leasing activity reached 1.0 msf in the first quarter of 2022.
Average asking rent
Asking rents increased by 10.5% year-over-year, bringing the overall average asking rate to a record high of $8.56 psf. Average asking rents in flex product increased by 6.1% year-over-year.
High tenant demand and lack of available existing space brought total vacancy to 2.7% in the first quarter, as occupiers act swiftly to expand their footprint in the market and construction levels remain elevated.
Investors continue capital deployment in industrial assets in Raleigh-Durham, translating to an average valuation of $148 psf in the first quarter, up 10% year-over-year.
Your source for the latest Raleigh-Durham industrial real estate reports
Stay on top of current trends affecting the industrial real estate sector in the Triangle. Gain an overall better understanding of Raleigh-Durham's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in the Triangle.
Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of the Raleigh-Durham industrial real estate market.