Raleigh-Durham office market reports
2022 Q2 highlights and trends
The Raleigh-Durham office market continues to gain momentum at a steady pace, as overall leasing activity and investor demand continued to move in an upward trajectory in the second quarter. The Triangle’s labor market remains extremely tight as the unemployment rate hit 2.9% as of April 2022.
Construction
At the end of the second quarter, Raleigh-Durham had 1.9 msf of office product under construction, of which 27% is preleased. Second quarter deliveries added only 230k sf to inventory, with an additional 755k sf expected to complete by year-end.
Office demand
In the last 12 months, office leasing activity totaled 3.6 msf, up 34% year-over-year. Raleigh-Durham’s suburban submarkets accounted for 64% of total positive absorption in the second quarter.
Direct asking rent
New construction rates, rising development costs and a steady influx of investment capital continue to increase asking rents in Raleigh-Durham. Class A rates in CBD submarkets remain elevated, reaching $36.88 psf in the second quarter.
Sublease availabilities
Raleigh-Durham’s total volume of sublease space on the market at the end of the second quarter, up 13% year-over-year.
Vacancy
Market-wide office vacancy increased by 60 bps year-over-year, which was attributed to new supply and tenant retraction.
Investment Sales
Strong economic momentum and heightened demand among investors continues to increase asset pricing in Raleigh-Durham. Second quarter office investment sales volume totaled $212M after a record-setting 2021 total of $2.1B.
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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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