Leasing momentum builds amid growing pressure on limited high-quality inventory
Leasing activity gained momentum in Q2 2025, with 0.8 million square feet (msf) transacted. This was up from 0.5 msf a year ago. Year-to-date leasing reached 1.2 msf, a modest increase from 1.0 msf in 2024. Notable deals included Hitachi Energy’s 157,715-square-foot (sf) renewal and LexisNexis’s relocation, both on NC State University’s Centennial Campus. These moves highlight the demand for space near university talent, research programs, and innovation assets. Several large tenants are also active in Downtown Raleigh and North Hills. While some have not yet executed leases, their space needs are significant. With no new Class A construction this quarter and demand building, Raleigh’s top-tier office buildings are likely to tighten further. This will pose challenges for tenants seeking quality space.