Q2 2024 MARKET REPORT
Photo: Downtown Raleigh skyline facing south Credit: AK Photography
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: Downtown Raleigh is growing with 17 developments under construction.1 When completed projects will deliver 1,811 residential units, 410 hotel rooms, and 137,266 square feet of retail space. An additional 45 planned and proposed developments would bring 7,381 residential units, 1,954 hotel rooms, 368,000 square feet of office space, and 252,008 square feet of retail space. The stabilized apartment occupancy rate is 93.6% and average asking rents are $2.17 per square foot.2* Already in 2024, a total of 419 residential units have been completed downtown with recent deliveries in Q2 of the Acorn Apartments and Mira Raleigh Apartments. The Class A office direct vacancy rate in downtown, which does not include sublease space available for immediate occupancy, ended the quarter at 14.0%, a slight decrease from 15.6% in Q2 2023.3 Total Class A net absorption for Q2 was -21,976 square feet, bringing the year to date total to +53,643 square feet.3 Class A average asking rents in Downtown Raleigh ended the quarter at $34.47 per square foot.4
DOWNTOWN RALEIGH Q2 2024 MARKET REPORT
17
DEVELOPMENTS UNDERWAY1
Q2 2024
1,811
RESIDENTIAL UNITS UNDER CONSTRUCTION1
Q2 2024
15
NEW STOREFRONT BUSINESS OPENINGS1
Q2 2024
1 DRA CoStar 3JLL 4 CBRE *Stabilized occupancy does not include recently completed projects 2
1