CBRE|Raleigh has released its second quarter 2018 office MarketView report for the Triangle market. The report highlights record-setting construction and rental rates as average class a lease rates rose 2.5% year-over-year to $26.63 per square foot. Overall, the market has continued to tighten as the vacancy rate decreased 99 basis points year-over-year to 9.8%.
The Triangle’s growth looks healthy as construction continues to boom and rental rates continue to rise. There is currently a record-setting amount of space under construction. With 2.66 million square feet active, the majority is happening in Downtown Durham. The submarket has nearly 1 million square feet of upcoming class A space. This space is pre-leasing quick as vacancy rates are declining and space is at a premium. Other submarkets in the market are experiencing the same thing. The two largest submarkets, RTP/I-40 and Cary, have seen the two highest increases in year-over-year same building rent change.
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 2017, the Raleigh office completed $2.2 billion of sales and leasing transactions. Please visit our website at www.cbre.us/raleigh.
About CBRE in the Mid-South Region
CBRE is the only global real estate services firm with offices in Norfolk, Newport News, Richmond, Charlottesville, and Fredericksburg, VA, and Raleigh and Greensboro, NC. These offices are collectively referred to as the Mid-South region. The CBRE Mid-South offices (excluding Northern Virginia and Charlotte, NC offices) completed $4.3 billion of sales and leasing transactions in 2017.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 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.