Q4 2024 Raleigh-Durham Office Figures

‒Net absorption totaled 52,211 sq. ft. in Q4 2024, marking the first period of positive demand for the year.
‒Direct vacancy ended Q4 at 17.5%, up 10 basis points for the quarter and 250 bps year-over-year. Overall vacancy rose to 21%, up 40 bps for the quarter and 210 bps year-over-year.
‒After declining in Q3, average asking rental rates rose slightly in Q4 as several owners pushed rates higher at properties in both urban and suburban locations.
‒With the delivery of 354,466 sq. ft. at Tower 5 at the North Hills Innovation District in Midtown Raleigh, the construction pipeline is empty for the first time since 2011.
‒After a dearth of sales through most of the year, several office buildings traded in Q4, driven by demand from both investors and from tenants buying buildings for occupancy.
‒With no new supply slated to be added to the market in the near term and demand expected to increase, fundamentals should begin to improve in 2025.