CBRE|Raleigh has released its first quarter 2020 Office MarketView report for the Triangle market. Despite the COVID-19 outbreak at the end of the first quarter, the office market ended on a healthy note. The market experienced declining vacancy ending at 10.0 percent and positive net absorption at 421,020 square feet. With tightening vacancy, Class A rental rates continued to rise, ending the quarter at an average full service rate of $29.25 per square foot, comparative to $29.07 at the end of 2019.
The Triangle is well positioned to attract future tenants with over 4.1 million square feet still under construction. Development projects are distributed across the market with the RTP/I-40 Corridor submarket leading with 1.4 million square feet. The submarket is anticipating new developments such as Forty540 Phase II, 4000 Paramount and Innovation I, as well as redevelopment projects such as The Stitch, Park Point and INQ 1101. This construction provides opportunities to major companies outside the market looking to diversify their portfolios in secondary markets.
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 2019, the Raleigh office completed $2.7 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.