CBRE|Raleigh has released its second quarter 2019 Industrial MarketView for the Triangle market. The reports highlights include a decrease in overall flex and warehouse market vacancy rates, reporting 6.3% and 6.5% respectively. As vacancy tightens throughout the market, the quarter experienced an increase in rental rates with an average asking rate for flex product at $12.16 per square foot NNN and warehouse product at $5.64 per square foot NNN.
There is a large opportunity in the market for industrial development, as there is not enough current construction to keep up with demand. Although the Triangle currently has 2.6M square feet of warehouse space that is set to deliver in the third quarter of this year, this construction belongs to the highly anticipated Amazon Distribution Center in Garner. As a result, new development activity is expected to rise in the upcoming quarters as demand fills up the limited vacancy.
The CBRE|Raleigh Industrial MarketView highlights flex and warehouse vacancy rates, lease rates and net absorption for the overall Triangle market, as well as individual submarkets in the Triangle. The report provides information on vacancy compared to lease rates, as well as unemployment statistics. The MarketView also highlights top sale and lease transactions from the quarter.
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.