Q2 2023
MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: There are 17 developments under construction and when completed they will deliver 2,032 residential units, 408 hotel rooms, 144,410 square feet of office space, and 99,650 square feet of retail space.1 There are an additional 42 projects planned or proposed including six in site preparation.1 Previously announced projects are adapting to the new market climate; 603 Glenwood Avenue will now be a solely residential development after replacing the office component with additional units. The development, expected to begin construction next year, will add 313 apartments to the Glenwood South District. Residential development continues to move forward with eight multifamily and three for-sale projects under construction, including the eight townhomes set to deliver in The Dukes at City View development. An additional 6,445 residential units in 21 developments have been proposed or are in planning. Since 2015, 3,749 units have been delivered including 3,545 apartment, 45 condos, and 159 townhomes. Downtown’s multifamily stabilized occupancy rate, which does not include recently completed developments in lease-up phase, is 94.2% and the average asking rent is $2.29 per square foot per month.3 The downtown office market has absorbed 68,936 square feet of Class A space so far in 2023.2 For Q2 2023, the Class A rent per square foot is $39.36 with an occupancy rate of 84.4%.4,2 DOWNTOWN RALEIGH Q2 2023 MARKET REPORT
Photo: Brian Mullins
17
DEVELOPMENTS UNDER CONSTRUCTION1
Q2 2023
2,032
RESIDENTIAL UNITS UNDER CONSTRUCTION1
Q2 2023
+68,936 SF YTD CLASS A OFFICE NET ABSORPTION2
2023
DRA
1
CBRE 3CoStar 4 JLL 2
1