CBRE|Raleigh has released its second quarter 2019 office MarketView report for the Triangle market. The report highlights the continued strength of the market as the Triangle experienced its seventh consecutive quarter of positive net absorption at 518,000 square feet. Demand is continuing to tighten up the market and drive up rents as overall vacancy decreased to 12.1 percent and average Class A rental rates continued to increase, ending the quarter at $28.41 per square foot.
The second quarter of 2019 saw several major transactions. Pendo announced it will move its corporate headquarters to The Fallon Company’s upcoming development, 301 Hillsborough Street in downtown Raleigh. The 125,000 square foot lease will occupy five floors of
the building. On the sale side, Align Technology purchased the Forty540 building in RTP. The company currently occupies 78 percent of the building, with the remaining space leased to SolarWinds. CBRE|Raleigh’s Investor Leasing group managed both transactions.
In addition to large transactions, big announcements were made regarding future developments. Kane Realty and North Carolina FC revealed a $2 billion stadium plan named “Downtown South.” The large complex would include hotel, residential, office and retail space, redefining the south end of Downtown Raleigh. Crabtree Valley Mall is also expected to make upgrades, as Plaza Associates announced a $290 million redevelopment plan that is requesting zoning for a 30-story mixed-use tower on the site of the former Sears building.
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.