Raleigh Office Market Report
Annual full-service rental rates recorded a historic high of $30.84/SF, reflecting a 3.1% increase year over year. However, rental growth has begun to level off as vacancies continue to rise and leasing activity remains muted. Occupancy declined quarter over quarter, with both sublease and direct availabilities increasing, pushing overall vacancy rates up by 70 basis points to a historic high of 20.4%. The under-construction pipeline ticked up to 154,666 SF under construction, marking the first increase since the third quarter of 2023, as higher building costs and steeper capital costs slowed new starts. Total leasing activity closed the quarter 11.0% below the 16-year third-quarter average of 1.1 MSF at 959,724 SF.
Download Raleigh Office Market Report 3Q24