Supply
Raleigh-Durham’s life sciences overall vacancy rate increased a modest 10 basis points (bps) quarter-over-quarter (QOQ) to 26.4% in Q3, despite quarterly occupancy gains. The increase reflected the removal of the RTP/I-40 Corridor’s 201,056-square-foot (sf) Charles Sanders Center, previously subleased to the North Carolina Department of Health and Human Services, from the life sciences inventory following its lease to BASIS Independent Schools, removing it from the life sciences inventory. Vacancy remained 160 bps below its Q3 2025 peak of 28.0%, supported by occupancy gains in recently delivered buildings and declining sublease vacancy. Notably, sublease vacancy also improved by 70 bps year-over-year, falling from its record high of 3.6% in Q3 2025.
Overall net absorption remained positive for the fourth consecutive quarter, bringing year-to-date (YTD) occupancy gains to more than 233,000 sf as tenant move-outs remained limited. Prior quarter leasing translated into Q3 move-ins, including Google Fiber occupying nearly 25,000 sf at Eastridge – Building 300 and Jazz Pharmaceuticals occupying more than 18,800 sf at TBC – Building 4020. Strong new leasing will continue to support occupancy gains, especially as large manufacturing users complete build outs of their spaces.
Demand
Nearly 130,000 sf of new leases were signed during Q3, bringing YTD activity to just under 397,000 sf. DG Matrix signed the quarter’s largest lease, taking nearly 55,000 sf at Southport 3 while diagnostics company Labcorp renewed for 33,500 sf at Eastridge – Building 100, contributing to nearly 64,000 sf of quarterly renewal activity. The RTP/I-40 Corridor submarket remained the primary driver of demand, representing 84.7% of new leasing YTD.
Pricing
Overall asking rates rose minimally QOQ, increasing by 0.3% to $38.63 per square foot (psf). Overall rates peaked at $40.31 psf in Q3 2023 when a wave of new, higher-priced space was introduced to the market. As premium space has leased, the market average has declined 4.2% from the peak. With construction paused and vacancy remaining elevated, asking rents are expected to remain relatively stable in the near term.
