Q3 2022 MARKET REPORT DOWNTOWN RALEIGH SUMMARY AND HIGHLIGHTS: Downtown Raleigh continued to expand across all product types in the third quarter with multifamily housing leading the way. There are currently 19 projects under construction or in site preparation with another 36 projects currently planned or proposed. Projects containing residential units anchor the development pipeline with 36 out of 55 projects bringing an additional 9,362 residential units to downtown. Strong demand continues for downtown living. Average asking rent in downtown rose to $2.35 per square foot, up 3% year over year, while occupancy remained high and steady at 95.4%.1 New development continues to push forward as 3,513 units across 15 projects are currently either under construction or in site preparation while at least another 5,849 units across an additional 21 projects are planned or proposed. Downtown Raleigh’s amenity rich office market serves as a key talent attractor for companies seeking to harness the rapidly growing pool of talent available in the Triangle. One of downtown’s newest office developments, 301 Hillsborough, further leased up in Q3 with international law firm K&L Gates leasing 26,298 square feet, the largest deal of the quarter for the market as a whole. 144,410 square feet of new Class A office space is under construction as part of the mixed-use project 400H. The project will also deliver 242 residential units and 16,000 square feet of retail space.
DOWNTOWN RALEIGH Q3 2022 MARKET REPORT
Photo by AK Photography
19
DEVELOPMENTS UNDER CONSTRUCTION OR IN SITE PREP3
Q3 2022
3,513
RESIDENTIAL UNITS UNDER CONSTRUCTION OR IN SITE PREP3
Q3 2022
+83,551 SF CLASS A OFFICE NET ABSORPTION2
Q3 2022 CoStar
1
CBRE 3 DRA
2
1