Q1 2026
MARKET REPORT
Photo: Downtown Raleigh skyline looking South Credit: Matt Robinson RaleighSkyline
14
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: There are 14 developments under construction that will deliver 601 residential units, 392,000 square feet of office space, 67,356 square feet of retail space, and 943 hotel rooms.1 An additional 38 projects are planned or proposed, which would add 6,182 residential units, 322,892 square feet of office space, 224,668 square feet of retail space, and 704 hotel rooms.1 Two projects delivered in Q1: the IDYLE townhomes, which added 10 units, and Lichtin Plaza at the Martin Marietta Center for the Performing Arts.1 Downtown Raleigh continues to absorb a recent wave of apartment deliveries, with 1,653 units absorbed since Q2 2024, including 114 in Q1.2 There are 601 units under construction across four projects, with another 6,182 planned or proposed.1 Stabilized occupancy is 89.7%, excluding recent deliveries, and average asking rent is $1,852 per unit.2 Downtown Raleigh recorded modest negative Class A net absorption of -14,088 square feet in Q1 2026, though net absorption over the past 12 months remains positive at +91,326 square feet.3 Average asking rent rose to $41.49 per square foot, up from $39.38 one year earlier.3 The overall direct occupancy rate is 86.9%, the highest among Triangle submarkets.3 DOWNTOWN RALEIGH Q1 2026 MARKET REPORT
PROJECTS UNDER CONSTRUCTION1
Q1 2026
601
RESIDENTIAL UNITS IN CONSTRUCTION1
Q1 2026
+1,653
APARTMENT UNITS ABSORBED2
Q2 2024-Q1 2026
1 DRA CoStar 3 JLL *Stabilized occupancy does not include recently completed projects 2
1