The office market continues to push forward from the beginning of 2014. Construction is up, job gains have already beaten 2013 levels and development plans are being requested and approved at levels unseen since 2008.
Raleigh business owners and tenants will find interesting:
Vacancy levels hit their LOWEST LEVEL SINCE 2008, coming in at 13.8% in 2Q14 compared to 14.1% in 1Q14
Class A office rental rates were similar to 1Q14 rates at $21.89 per square foot.
Office space absorption outpaced 1Q14 by over 400,000 SF, from 94,000 SF in 1Q14 to 500,000 SF in 2Q14!
How does this apply to business owners and tenants? If you are late in the game and looking for space, everyone from existing Raleigh businesses to out of town companies are beating you out. Expansions by existing tenants and rights of first refusal are being exercised by current Raleigh businesses to secure their space and room for future growth.
Class A options for office are as limited as ever. Construction WILL come back, Downtown Raleigh released this quarter their new plan for street revival and development in Raleigh, but immediate office needs are still tough to accommodate. Look for areas like Downtown Raleigh and even Cary for the best options on space and future construction.