In 2018, the Triangle market proved to be one of the top performing markets according to Cushman & Wakefield’s national research. The Raleigh-Durham market ranked No. 1 in the Southeast for total absorption and new deliveries. Riding off the highs from 2018, the Triangle market kicked off Q1 2019 with the delivery of One Glenwood (downtown Raleigh) and Perimeter Six (RTP/I-40), totaling 423,187 square feet (sf).
Q1 posted solid Class A absorption gains while vacancy ticked up slightly due to the new supply. First quarter absorption totaled 438,436 sf and posted nearly 2.3 msf. Overall and Class A vacancy ticked up to 12.7% and 8.9%, respectively. Rental rates continued to surge in the Triangle as tenants adjust to the growing market fueled by new Class A supply, higher construction costs and a healthy investment market. Overall and Class A asking rates edged up 5.0% and 6.3% year-over-year, respectively, marking the 17th consecutive quarter of rental rate growth.
Below are Five Fast Facts about Raleigh-Durham’s office market.