Q1 2024 Raleigh-Durham Office MarketView

‒The office market experienced negative net absorption of 255,777 sq. ft. in Q1 2024 as lease expirations far exceeded tenant move-ins.
‒Direct vacancy ended Q1 at 15.7%, up 80 basis points for the quarter and 170 bps year-over-year. Overall vacancy rose to 19.3%, up 40 bps for the quarter and 90 bps year-over-year.
‒Rent growth was flat in Q1, with the average Class A asking rate ending the quarter at$33.28 per sq. ft.
‒Sublease availability increased from 3.5 million sq. ft. in Q4 2023 to 3.6 million sq. ft. in Q1.
‒One building totaling 150,000 sq. ft. of office space was delivered in Q1, with all of the space still available for lease.
‒Office space under construction declined to 855,616 sq. ft., representing 1.5% of inventory. Just 18% of the space has been leased.