Q3 2023 Raleigh-Durham Office MarketView

October 23, 2023 15 Minute Read


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Market Report Highlights

  • The office market experienced 284,966 sq. ft. of positive net absorption in Q3 2023, 
    resulting in large part from the delivery of a new headquarters campus for Bandwidth in West Raleigh.
  • Direct vacancy ended Q3 at 14.0%, up 40 basis points for the quarter and 200 bps year-over-year. Overall vacancy rose to 18.6%, up 30 bps for the quarter and 280 bps year-over-year.
  • The average Class A asking rate ended Q3 at $33.45, up 0.5% for the quarter and 0.9% year-over-year.
  • Sublease availability declined to 4.0 million sq. ft., representing 7.4% of inventory, as 
    spaces were leased or rolled to direct vacancy.
  • Office space under construction declined to 1.5 million sq. ft., representing 2.7% of inventory