Raleigh Office Market Report
Annual full-service rental rates declined from their historic high to $30.63/SF. However, they remain 1.3% higher than rates reported during the fourth quarter of 2023. Occupancy declined quarter over quarter, as the market continues to work through the new deliveries that occurred throughout the year, pushing overall vacancy rates up by 40 basis points to a historic high of 20.9%. The under-construction pipeline expanded to 203,381 SF under construction but remains well below historic averages as the impacts of higher financing and construction costs have slowed construction starts. Total leasing activity closed the quarter 44.8% below the 16-year fourth-quarter average of 1.1 MSF at 661,374 SF.
Download Raleigh Office Market Report 4Q24