Raleigh-Durham office market reports
3Q21 highlights and trends
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The Triangle’s access to talent, employment and education continue to provide key fundamentals for market recovery. Raleigh-Durham ranks #1 in the U.S. for real estate prospects in 2021 by the Urban Land Institute.
Economic conditions
After Covid-19’s impact took its toll in May of 2020, the unemployment rate has dropped to 4.0 percent as of July 2021. Office-using job totals have declined 2.4 percent, yet Raleigh-Durham’s professional and business services sector gains have surpassed pre-pandemic levels, rebounding by 14.6%.
Recovery rate
The overall post-COVID rate of recovery based on extrapolated mobility data is 64.8 percent suggesting that many consumers are ready to return to their pre-Covid routines, yet offices are seeing only 36.0 percent of pre-Covid mobility.
Office demand
Leasing activity is gaining ground after declining in the first half of 2021. Year-to-date activity reached 2.2 msf in the Triangle.
Office supply
Direct and sublease vacancy has achieved all-time highs, totaling 15.1 percent. Avison Young projects continued increases in vacancy for the foreseeable future.
Pricing trends
Tenants can expect to hold leverage in most lease negotiations, excluding top-of-market properties. Concessions in NC remain highest on record, without increasing base rents. New construction and recent delivery of Class A product continues to support rents in the segment.
Capital markets
Cap rates and asset pricing are expected to remain steady based on increased economic momentum and renewed investor interest. Private investors continue to dominate, representing 63.5% of total buyer composition. Trailing-12-month sales volume totaled $1.0B.
Your source for the latest Raleigh-Durham office market reports
Get in-depth office market reports and insights from commercial real estate experts in the greater Triangle area. Avison Young advisors look at Raleigh-Durham commercial real estate activities and the latest Raleigh-Durham statistics to provide you expert market research on Raleigh-Durham's office properties.
Explore different topics like the latest office market pricing trends and analysis of Raleigh-Durham's current office real estate market conditions. Gain a better understanding of Raleigh-Durham’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Raleigh-Durham's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Raleigh-Durham.
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