APG Advisors gathers information regarding the Raleigh-Durham Office Real Estate Market regularly to give an idea of the commercial real estate properties arising in the region.
The Q2 office market report includes a submarket breakdown, a look at quarterly deliveries and the properties that are currently under construction, and an update on the current leasing velocity in the Raleigh-Durham area.
Leasing velocity remains flat, although major commitments from life science tenants help drive the market’s positive net absorption in Q2 of 220,917 square feet.
The 1.3 million square feet added to the market year-to-date are collectively 50% leased. Another 1.35 million square feet is under construction with delivery estimated by year-end.
New 2020/2021 deliveries have driven Class A direct vacancy to 13.4%. While the average Class A direct asking rent of $29.66 is flat quarter on quarter and year on year.
Considering the headwinds the market faced in the last year, we consider flat a victory. The rate, which is calculated from current availabilities only, represents a 17.7% increase over five years.
There were six individual non-medical office properties sold year to date; a total of 490,912 square feet for a combined $90,083,000. The 2021 average price per square foot of $184 is a 7% increase YOY.
You can see a few of our past quarterly reports here, including:
And download a pdf of the full 2021 Q2 Raleigh Durham Office Market Report below.DOWNLOAD PDF