Q3 2023 Raleigh-Durham Office MarketView
October 23, 2023 15 Minute Read
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