Q1 2023 Raleigh-Durham Industrial MarketView

Market Report Highlights: 

- Net absorption of warehouse and flex space combined totaled 862,302 sq. ft. in Q1 2023. Overall vacancy rose 240 basis points year-over-year to 4.5%

- Warehouse vacancy rose to 4.1% in Q1, up 170 basis points for the quarter and 270 bps year-over-year

- Flex vacancy ended Q1 at 6.7%, down 20 bps for the quarter and up 120 bps year-over-year. 

- The average warehouse asking rental rate rose 12.8% year-over-year to $8.54 per sq. ft. 

- Projects totaling 2.2 million sq. ft. were delivered in Q1, with another 4.6 million sq. ft. under construction and slated for completion in the next 18 months.