CBRE|Raleigh has released its third quarter 2018 office MarketView report for the Triangle market. The report highlights robust leasing activity and tight vacancy as market continues to see positive net absorption and vacancy remains steady at a low 9.8 percent for the overall market.
The third quarter of 2018 was marked by large major leases as the Class A office market continues to tighten. Class A vacancy dropped to 7.91 percent with downtown Raleigh seeing the most activity. Insurance firm Arch Capital signed a lease for 104,000 square feet at The Dillon and international law firm McGuire Woods signed a lease for 42,000 square feet at FNB Tower. Downtown Raleigh commands the highest average Class A asking rates at $30.87 per square foot with new construction asking an average of $35.33 per square foot.
As the Triangle continues to grow, office construction continues to be on the rise. There is currently over 2,651,000 square feet under construction, with the majority in Central Durham. The submarket currently has 950,000 square feet underway, as overall vacancy remained under 4 percent and class A vacancy under 2 percent.
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.