Q1 2025 Raleigh-Durham Industrial Figures

‒Net absorption of warehouse and flex space combined totaled -406,246 sq. ft. in Q1 2025.
‒Overall vacancy rose to 6.4%, up 40 basis points for the quarter and 40 bps year-over-year.
‒Rent rates remained stable starting off 2025. The average warehouse asking rate edged down to $8.98 per sq. ft. in Q1, down 1.1% for the quarter and 3.2% year-over-year. The average flex asking rate rose to $17.55, up 0.5% for the quarter and 1.2% year-over-year.
‒Construction picked up in Q1, with 4.4M sq. ft. underway. That is up from 2.1M in Q4. Twenty-four percent of the space has already been leased.
‒Although overall Raleigh-Durham investment sales remain light, industrial continues to be a favored asset class, with several buildings purchased by investors and owner occupants in Q1.