Rapid rent growths help push RECORD BREAKING numbers in office investments for the Triangle. The second quarter put over $613 Million in investments on the books. Uptick in investment activity also helped leasing activity with demand reaching 835,000 SF.
Raleigh business owners and tenants will find interesting:
Over 30 companies have either relocated or expanded in the Triangle and Wake Co., adding $99.5 Million in investment to the economy
Vacancy levels continue to plunge with more company relocations, dropping 3 basis points to 11.2% vacant space for 2Q15.
Average office rents were highest in Downtown Raleigh at $28.21 per SF, compared to the Triangle’s$21.03 per SF.
Office demand continues grow with rental rates expecting to rise an additional 7% by end of 2015.
How does this apply to business owners and tenants?
Economy numbers still indicate that job growth and the business climate in the Triangle remain on the rise and attractive. Investors are taking note and scooping up any office property whether Class A or Class B grade. This is leading to renovated buildings with new amenities, especially in the suburban markets.
For tenants, these new suburban options are becoming attractive, as the majority of big leasing activity occurred in Cary for 2Q15. This also means that tenants and business owners can expect increasing rental rates to continue, whether in downtown Raleigh, Durham or RTP and North Raleigh.
For startup clients, the cheaper deals of the past by being a little further outside of downtown are disappearing. If finances are still tight, co-working spaces and hubs may be a good temporary option. The latest on co-working spaces with Industrious (past client) and HQ Raleigh downtown can be provided, just give me a call!