For the third consecutive quarter, the Triangle’s warehouse market posted strong absorption levels of 378,988 square feet (sf), while vacancy declined to new historical lows of 5.8%. Robust demand has showed no signs of slowing down and is expected to continue its current pace through 2019. Construction levels for speculative warehouse space have been stagnant over the last year, but if these market conditions persist, experts point to construction activity ramping up.
In Q2, the Triangle’s flex market recorded solid absorption levels of 147,009 sf, resulting in vacancy levels declining for the sixth consecutive quarter to 6.2%. Market-wide rental rates for flex space increased to $12.13 psf and reflected solid year-over-year growth of 4.1%. Desirability for the RTP/I-40 submarket remains high and is the priciest area with average asking rates of $14.37 psf.
Below are Five Fast Facts about Raleigh-Durham’s industrial market.