Raleigh Retail Market Report

Johnston County supports Raleigh’s historically tight retail conditions. Elevated competition or limited storefronts persists in the metro, where vacancy remains the nation’s lowest entering 2025. This constraint stems from subdued construction. New supply is less than half the longterm average, with over 40 percent of deliveries already leased. Meanwhile, Johnston County — set to receive a quarter of 2025 completions — entered the year near a record-low 1.7 percent vacancy. Helping drive consumer demand, are dual demographic factors. More than 90,000 total jobs have been added since 2021, outpacing pre-2020 growth. Raleigh’s population also grew by over 3 percent annually last year — second only to Austin among major U.S. markets — reflecting the influx of professionals seeking high-wage opportunities. These conditions underscore strong tenant demand, fueling a favorable retail sales forecast. With new stock largely pre-leased and rising household incomes bolstering spending, Raleigh’s availability will stay exceptionally tight, sustaining above-average rent gains.