With the year over halfway done, the Raleigh office market continues to improve its numbers! Vacancy continues to drop from the 2nd Quarter and rental rates are still inching upward, all good signs for investors and landlords.
Raleigh business owners and tenants will find interesting:
Vacancy levels drop even lower than 2008 to 13.7% in 3Q14.
Class A office rental rates were the following:
Downtown Raleigh - $22.37
Blue Ridge/Glenwood - $21.40
Six Forks/North Hills - $20.91
Cameron Village - $19.16
Office space absorption was up to 890,661 SF in the 3rd Quarter, 23% higher than 2013 levels!
How does this apply to business owners and tenants?
Raleigh is becoming more and more a Landlord market. If you are looking to lease, don't expect to get lower rental rates, free months of rent AND help upfitting your space. Your wish list is no longer appealing to Landlord's who have multiple companies interested in the same space. This is true ESPECIALLY if you are looking at Class A space.
Development is on the way, as Gordon Grubb of Grubb Ventures just announced a complete revitalization and new construction of a Glenwood office park near the Women's Club of Raleigh that will add hundreds of thousands of SF for rent.