Q1 2025
MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: There are 13 developments under construction which when completed will deliver 1,139 residential units and 30,365 square feet of retail.1 There are an additional 37 projects planned or proposed that if completed would add 7,767 residential units, 1,590 hotel rooms, 348,392 square feet of office and 245,845 square feet of retail.1 There are currently no hotel or office developments underway. Two apartment developments, The Row and Maeve, delivered 633 apartments in total to the southwest corner of Downtown Raleigh. In total, 2,334 residential units have been delivered downtown since Q2 2023, a 29.5% increase in Downtown’s total inventory.1 Downtown Raleigh now has over 10,000 residential units in total.1 Downtown’s stabilized apartment occupancy rate is 92.3% and the average asking rent per unit in Downtown Raleigh is $1,829.2 Class A office net absorption in Q1 totalled +44,581 square feet and Downtown Raleigh’s direct vacancy rate, 14.6%, is the lowest of major submarkets in the larger Raleigh-Durham Market.3 Class A asking rent per square foot is $39.38, $6.41 higher than the market average.3 Notable leasing activity includes architecture firm HKS signing a 4,763 square foot lease in 400H and software firm Atmoic Object expanded into a 6,000 square foot space at 150 Fayetteville.3 DOWNTOWN RALEIGH Q1 2025 MARKET REPORT
Photo: The playground at Chavis Park Credit: Bryan Regan
13
PROJECTS UNDER CONSTRUCTION1
Q1 2025
2,334
RESIDENTIAL UNITS DELIVERED SINCE
Q2 2023
23
NEW STOREFRONT BUSINESS OPENINGS1
Q1 2025
1 DRA CoStar 3 JLL *Stabilized occupancy does not include recently completed projects 2
1