Raleigh Office Market Report
| Average Asking Rent (Price/SF) | $28.72 |
| Vacancy Rate (%) | 13.6% |
| Net Absorption (SF) | 258,498 |
Raleigh/Durham continued to show resilience and strength at the start of this year with its fourth consecutive quarter where demand growth outpaced supply, combining for over 258,000 square feet of positive net absorption during the first quarter of 2022. This was another improvement from the negative absorption that the market saw during the same time one year ago. This time the first-tier Class A segment dominated space needs, with over 202,000 square feet of absorbed space. Class B space trailed, with over 62,000 square feet of positive net absorption. The Class C sector saw an increase in supply, with about 6,400 square feet of negative net absorption. Overall vacancy dipped 10 basis points from the previous quarter but was still 130 basis points from the 12.3% recorded one year ago. This can be attributed to the new development being completed since that time. Asking rents ticked upward from the previous quarter but appeared to be slowing with a year-over-year increase of only 2.8%. Class A spaces average almost remained unchanged from the previous quarter and only increasing by 2.6% from the same period in 2021 and $0.78/SF from one year ago. Lower-tier Class B and Class C segments saw similar moderate increase.
Download Raleigh Office Market Report 1Q22