CBRE|Raleigh has released its fourth quarter 2017 office MarketView report for the Triangle market. The report highlights a strong finish to the year with several large transactions. The market is continuing to see an increase in average class A lease rates which rose from $25.02 to $25.29 per square foot. Overall market vacancy increased from 14.1% to 14.3%. However, class A vacancy continued to tighten, dropping 45 basis points to 8.74%. Downtown Raleigh’s overall vacancy dropped to an eight-year low of 6.86%.
The fourth quarter was one filled with activity as the Triangle market hit its highest year-end absorption total since 2008. The bulk of this absorption occurred in class A office product. Some of the notable transactions include SolarWinds leasing 41,175 square feet at Forty540 in the RTP/I-40 submarket, as well as Conduit signing a 36,887 square foot lease at 1800 Perimeter Park. The US 70/Glenwood submarket had a big announcement with India-based IT Firm, Infosys, signing a 60,477 square foot lease at the upcoming Legacy at Brier Creek. The company committed to creating a 2,000 job tech hub in the upcoming years.
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.