Q4 2024 Raleigh-Durham Industrial Figures

‒ Net absorption of warehouse and flex space combined totaled 1.2 million sq. ft. in Q4 2024, bringing the year-to-date total to 3.4 million sq. ft.

‒ Overall vacancy rose to 6%, up 10 basis points for the quarter and 50 bps year-over-year.

‒ Rent growth moderated but remained positive in 2024. The average warehouse asking rate rose to $9.08 per sq. ft. in Q4, up 0.7% for the quarter and 4.6% year-over-year. The average flex asking rate rose to $17.46, up 0.2% for the quarter and 3.3% year-over-year.

‒ Construction deliveries totaled 1.4 million sq. ft. in Q4, with 65% of the space leased upon completion. The amount of industrial space underway declined to 2.1 million sq. ft., the lowest level registered since Q4 2020. Forty-seven 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 occupantsin Q4.