- Rental rates Increased:
Direct rental rates increased 6.4% QOQ, posting at $36.93 NNN psf, a new all-time high for the Life Sciences market.
- Vacancy Recorded Slight Increase:
Direct vacancy increased 20 basis points to 18.5%. Some of the largest direct vacancies include the newly delivered Press building and INQ 4300 which together offer more than 367,000 sf of vacant space options.
- Tenants Occupied Space:
Direct absorption hit a historic high with over 432,000 sf of direct quarterly occupancy gains with Analog Devices, Wolfspeed/Cree, and Targan moving into their spaces at Park Point – Edge East, 40 Moore Drive, and Midtown Biocenter respectively.
- Construction Deliveries Expected:
Over 1 msf of new construction is expected to deliver in the second half of 2023. Notable projects include Spark Buildings BMF 1 and 2 and Pathways BMF 1.
- Renewals were on the rise:
More than 177,500 sf of renewals were signed in Q2, bringing the YTD total to over 229,000 sf. Catalent signed the largest renewal of Q2 at Southport (130,000 sf), demonstrating tenant commitment to the Raleigh-Durham market.