Sublease space in Raleigh-Durham declines for the first time in two years

In Q2 2023, the Raleigh-Durham market reported 4.4 million square feet (msf) of sublease space on the market. Despite a 36% increase from 2.8 msf in Q2 2022, this is the first time in a record nine quarters that sublease space has decreased month over month. In June, the Triangle experienced a net decrease of 165,000 square feet (sf) of sublease space from the previous month, where 47% of the subleases taken off the market in June were subleased by another tenant. This resiliency of subleasing activity is apparent in Q2 2023 as 40% of the top leases signed in the market were sublease deals. This includes the top two leases by Globant and Envestnet, respectively, which were both 27,000 sf. Looking forward, sublease leasing velocity will remain attractive as lower rental rates and shorter lease terms offer tenants discounted space in highly sought-after submarkets.

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