Leasing activity proves strong in Raleigh-Durham depsite rising availability levels

The Triangle office market reported more than 800,000 square feet (sf) transacted in the second quarter of 2022. This was a 45% increase since last quarter despite 22 fewer lease deals. Though fewer leases were signed in Q2, many large transactions were predominantly in the RTP/RDU submarket, including Analog Devices leasing over 156,000 sf at 4001 E Highway 54 in Durham. Despite higher leasing activity, the total availability rate remains the second highest ever reported, ending the quarter at 17.8%. This 140-basis point increase from 16.4% a year ago is mostly due to larger blocks of available space and new office construction. According to the U.S. Bureau of Labor Statistics, the Triangle’s unemployment rate of 3.1% remains below the national average with year over year office-using employment growth increasing almost an entire percentage point since January 2022. This shows robust hiring as companies continue to relocate to the Triangle area as they are highly attracted to the area’s highly educated workforce, specifically in the technology and life-sciences sectors.

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