Raleigh-Durham’s industrial market continued to see low vacancy rates and rising rental rates in Q3 2022. Read our Five Fast Facts to learn more about the trends that impacted the industrial market in the third quarter.
FACT 1:
Leasing Activity Increases
Leasing activity surpassed 1 MSF in Q3 bringing the YTD total to just over 3 MSF. One notable transaction was Empire Distributors taking 300 KSF in Southern Wake County.
FACT 2:
New Construction Deliveries
Seven buildings totaling more than 826 KSF of space delivered across the Triangle YTD. The largest was Beacon Commerce Park with Building 1 delivering fully vacant, bringing 280 KSF of space options into Eastern Wake County.
FACT 3:
Absorption Remains High
With more than 400 KSF of positive absorption recorded in Q3, the annual industrial absorption total reached more than 650 KSF.
FACT 4:
Vacancy Remains Low
Vacancy rates remained low especially in the warehouse/distribution category where rates were reported at 2.1%--tighter than the national average of 3.2%.
FACT 5:
Rent Growth ContinuesRental rates rose 66 BPS from Q2 2022 to $18.24 PSF. Warehouse rates climbed to $8.43 PSF and flex rates reached $22.31 PSF.
