Supply increased with the addition of more than 302 KSF of sublease space added across multiple submarkets as tenants reevaluated their space needs.
Renewal Activity Persists
Renewals made up a large portion of leasing activity with nearly 148 KSF signed this quarter. One large Q3 transaction was at 2121 RDU Center Drive with Extreme Networks renewing its 54,530-SF lease.
FACT 3:Leasing Remains Strong
Leasing remained strong with 2.8 MSF of new leasing activity YTD. 48% of the leasing activity occurred in the RTP/I-40 Corridor submarket—more than 1 MSF of activity YTD.
Unemployment Rate Remains Below 3.0%
The Triangle’s unemployment rate remained at 2.8% in Q3 which is consistent QOQ, well below the national average of 3.5%.
Raleigh CBD New Construction
In Downtown Raleigh, two new buildings, 2201 Iron Works Drive and 1101 E Whitaker Mill Road, delivered bringing 225,227 SF to the market, causing the direct vacancy rate in the Raleigh CBD to increase 130 BPS QOQ from 15.4% to 16.7%. So far, 144,223 SF has been preleased at 2201 Iron Works. There were minimal changes to direct vacancies in other Triangle submarkets.