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Market Report

Raleigh Office Investment Forecast

2020 Outlook

Corporate Expansion Delivers Robust Demand Drivers; Investors Prioritize Assets in North Raleigh

 

Office construction and strong tenant mix reinforce Raleigh-Durham. A lower cost of living and corporate synergy potential make the area a destination for a variety of global firms. Last year, companies such as MetLife, Credit Suisse, and Rho renewed their commitment to the metro by building new headquarters or office buildings. In 2020, Advanced Auto Parts, Xerox, and LabCorp will occupy a combined 400,000 square feet in the metro, bolstering prospects for both developers and future tenants. The healthy position of Raleigh’s office market has led developers to create speculative office concepts such as the Stitch, a 250,000-square-foot creative space, and 1101 Shiloh Glenn, a shopping center conversion into 140,000 square feet of trophy office space. Nevertheless, pre-leased properties make up the majority of new construction in the metro, specifically in areas along Interstate 440 and in West Wake County. This year’s construction total will surpass last year’s 1.8 million square feet of new office space, bumping up vacancy.

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