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Market Report

Raleigh Office Market Report

2024 Investment Forecast

Mixed-Use Buildings Draw the Bulk of Space Demand,
Reflecting Growing Importance of Shorter Commutes

Tenants prioritize proximity to residential growth hubs. North Hills’ reinvention into a walkable mixed-use district is leading it to become a standout area for local office leasing. Tenants are already slated to occupy over 150,000 square feet at The Exchange — one of two local developments that will collectively include over 3,000 rentals and 1.5 million square feet of retail by 2026. Office demand at these projects may help push North Raleigh’s net absorption into positive territory for the first time since 2020, ushering in greater stability after its vacancy reached a record 16.2 percent last year. Additionally, the local average asking rate is primed to rise, as these and other deliveries command asking rents that exceed the local average. Elsewhere, the recent scarcity of retail and apartment additions in the Research Triangle has likely contributed to its near-20 percent office vacancy entering this year. Thankfully, over 1,600 rentals are scheduled here through mid-2025. These apartments will provide more options for tenants to shorten their current and prospective employees’ commutes, a demand tailwind.

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