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.

1.9 msf

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.

3.6 msf

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.

$30.66

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.

2.1 msf

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.

15.2%

Vacancy

Market-wide office vacancy increased by 60 bps year-over-year, which was attributed to new supply and tenant retraction.

$212M

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.

Click here to download the 2022 Q2 Raleigh-Durham Office Report

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.

The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.

Get the latest Raleigh-Durham office market reports right in your inbox