CBRE|Raleigh has released its fourth quarter 2019 office MarketView report for the Triangle market. The report highlights the continued strength of the market as the Triangle experienced its ninth consecutive quarter of positive net absorption at 350,000 square feet. Class A rental rates continued to rise, ending the year at an average full service rate of $29.07 per square foot, comparative to $28.76 at the end of the third quarter.
Leasing activity continued to drive the market in the fourth quarter. IT management software company, SolarWinds preleased 80,000 square feet at Forty540 Phase II in the RTP/I-40 corridor and PolicyGenius preleased 48,000 square feet at upcoming 555 Mangum in Central Durham. Other major leases included Duke Health’s 28,000 square foot lease at Parmer RTP and TRC Environmental’s 18,000 square foot lease on Rock Quarry Road in Eastern Wake County.
The Triangle market has over 3.5 million square feet of office product currently under construction. These projects are seeing rental rates rise, with some asking rates as high as $41.50 per square foot for urban product and $37.50 per square foot for suburban product.
The CBRE|Raleigh Office MarketView highlights vacancy rates, lease rates and net absorption for the overall Triangle office market, as well as each submarket throughout the Triangle. The report provides information on net absorption compared to vacancy, average Class A office asking rates, employment statistics, top transactions and more. CBRE|Raleigh releases the Office MarketView at the completion of each quarter throughout the year.
CBRE|Raleigh is a CBRE office serving the Triangle region and is a joint venture between local principals and CBRE Group, Inc. The firm assists real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. In 2019, the Raleigh office completed $2.7 billion of sales and leasing transactions. Please visit our website at www.cbre.us/raleigh.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.us.