CBRE|Raleigh Releases Q3 2021 Office Market Report
November 4, 2021
CBRE|Raleigh has released its third quarter 2021 Office MarketView report for the Triangle market. The office market continues to shows its resiliency despite the Delta Variant. Class A average rental rates increased to a full service rate of $30.45 per square foot, comparative to $29.99 at the end of the second quarter. Vacancy in the market decreased to 12.98 percent, a sign of activity coming back to life.
The Life Science industry continues to be the most active sector of the market as developers continue to convert office or flex space into lab developments. Recently completed developments or those underway include Park Point, TBC Place, Eastridge, SouthPort, Perimeter’s Edge, Keystone Technology Park, Newcastle and BioPoint, all of which are located in the RTP/I-40 submarket. As major life science companies continue to expand or enter the Raleigh-Durham market, we expect more than 1.2M square feet of life science inventory to be absorbed by the end of 2021.
“The state of Raleigh-Durham’s office market is promising as activity picked up at the end of the third quarter. We are seeing positive signs inside our industry with vacancy rates starting to decrease again and Class A rental rates continuing to climb. We remain optimistic for the future as major companies continue to make announcements about moving into our market or expanding their current operations here,” said Executive Vice President Brad Corsmeier.
The CBRE|Raleigh Office MarketView highlights vacancy rates, lease rates and net absorption for the overall Triangle office market, as well as each submarket throughout the Triangle. The report provides information on net absorption compared to vacancy, average Class A office asking rates, employment statistics, top transactions and more. CBRE|Raleigh releases the Office MarketView at the completion of each quarter throughout the year.
CBRE|Raleigh is a CBRE office serving the Triangle region and is a joint venture between local principals and CBRE Group, Inc. The firm assists real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. In 2020, the Raleigh office completed $2.4 billion of sales and leasing transactions. Please visit our website at www.cbre.us/raleigh.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.