2023 Q1 Raleigh-Durham Office Market Report
Net absorption in RDU has turned negative in the past two quarters with an annual net absorption of -700,000 square feet. The combination of negative net absorption and the delivery of new products has increased vacancy rates to 11.0%. While the vacancy rate is high for the market is historic terms, it is still below the national average of 12.9%. While tenants continue to right-size their footprint, the flight to-quality has led to most of the leasing activity occurring in newly constructed office buildings with walkable amenities. Tenants in the market can leverage direct deals with Landlords by taking advantage of the 2.4 million square of available sublease space. There is optimism as the region continues to see an increase in population and jobs. This is evident by the fact there are more residential units in downtown Raleigh under construction or recently completed than at any time in history.