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.
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.
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.
Raleigh-Durham’s total volume of sublease space on the market at the end of the second quarter, up 13% year-over-year.
Market-wide office vacancy increased by 60 bps year-over-year, which was attributed to new supply and tenant retraction.
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.
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