CBRE|Raleigh has released its third quarter 2019 office MarketView report for the Triangle market. The report highlights the continued strength of the market as the Triangle experienced its eighth consecutive quarter of positive net absorption at 442,000 square feet. Demand is continuing to tighten up the market and drive up rents as overall vacancy decreased to 10.7 percent and average Class A rental rates continued to increase, ending the quarter at $28.76 per square foot, up from $28.41 per square foot in the second quarter.
The third quarter of 2019 saw some major tenant movements in the market. Advance Auto Parts announced it will move its headquarters operation to North Hills’ newest tower that is currently under construction. The company will anchor the building with 218,000 square feet. Parmer RTP’s activity has not slowed down. Duke Health leased 120,000 square feet in the park, while Labcorp expanded its footprint and leased an additional 111,000 square feet there as well.
In addition to the major lease transactions, the third quarter also experienced several large investment sale transactions. Well-known CAPTRUST Tower in North Hills was sold to Preferred Office Properties setting the highest price per square foot for an office tower in the Triangle market at $459. Northchase Executive Center also traded hands in the Six Forks Road submarket with a $232 per square foot sales price to JPB Holdings.
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 2018, the Raleigh office completed $1.9 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.