Construction cranes continue to dot the Raleigh and RTP skylines, but office deliveries of 2.46 Million SF are still outstanding.
What this means for immediate leasing concerns? Higher rents across all office product, with particular historic highs in the Class A and new build product.
Raleigh business owners and tenants will find interesting:
Class A Space was responsible for 96% of leased and absorbed space, or 207,375 SF in 3Q18!
Triangle vacancies continued to drop for 2Q18 with reported overall vacancy rate of 7.49% in 3Q18.
Downtown Durham continues to have the lowest vacant space rate in Triangle, with 1.53%in 3Q18.
Downtown/CBDs continue to be the flavor for investors, as Wells Fargo tower in Downtown Raleigh sold for $173 Million.
How does this apply to business owners and tenants?
For tenants, the market still favors landlords. Concessions are stripping away and very few landlords and projects are willing to come off face rental rates with such increased activity. Look for speed of delivery and flexibility in lease terms as carrots now.
For growth stage and startup companies, WeWorks had a grand opening in Durham. The increase space options for coworking and short term office leases is infiltrating the Triangle like never before. Use a tenant rep to help negotiate between competing communities and you will end up with the best deal for your short term space!