Q2 2026 MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS:
12 Q2 2026 DEVELOPMENTS UNDER CONSTRUCTION1
There are 12 developments under construction that will deliver 333 residential units, 392,800 square feet of office space, 67,356 square feet of retail space, and 943 hotel rooms when completed.1 An additional 40 projects are planned or proposed, which when completed would add 6,402 residential units, 322,892 square feet of office space, 245,652 square feet of retail space, and 704 hotel rooms.1
Oldham & Worth, the second phase of the West End development in the Warehouse District, delivered 252 apartment units and 4,000 square feet of retail space.1 There are 333 residential units under construction in two projects with an additional 6,402 units in site preparation, planned, or proposed.1 Downtown Raleigh has absorbed 482 apartment units year to date through June.2 Stabilized apartment occupancy is 92.5% and the average asking rent is $1,876 per unit.2
Over the past 12 months, Downtown Raleigh recorded +45,119 square feet of positive Class A net absorption despite -2,932 square feet of negative net absorption during Q2 2026.3 Notable office leasing activity includes Progress Software leasing 29,171 square feet at 421 N Harrington Street and MaintainX leasing 18,190 square feet at 150 Fayetteville Street.2
268 RESIDENTIAL UNITS DELIVERED1 Q2 2026
482 APARTMENT NET ABSORPTION2 2026 YTD
*Stabilized occupancy does not include recently completed projects
Photo: Glenwood South District facing South Credit: Matt Robinson
Class A average asking rent increased to $41.24 per square foot, up +3.8% year over year.3 The overall direct occupancy rate is 87.0%, the lowest among major Triangle submarkets 3
Q2 saw 14 storefront business openings and 11 closures, for a net gain of +3 businesses.5 Another 26 storefront businesses have announced plans to open in the near future.5 Year to date food and beverage sales through May were $144 million.2
Visitor visits to Downtown Raleigh increased +5.4% in Q2 compared with the same period last year, supported in part by a surge in activity during the Carolina Hurricanes’ successful Stanley Cup playoff run.3 Glenwood South recorded the largest Q2 year over year increase of any district at +12.9%, including a +20.1% increase in June.3
More than 2.3 million unique visitors came to Downtown Raleigh during Q2, a +1.2% increase from one year earlier.3 Hotel room revenue in April and May also increased +6.6% year over year.2 Downtown has 943 hotel rooms under construction across three projects, including the renovation of 204 rooms into a Hotel Indigo, 138 rooms at a Marriott Townplace Suites, and 601 rooms as part of the Omni Raleigh Convention Hotel.5
Notable property transactions in Q2 included the sale of the retail condominium at 417 W Peace Street which houses the the 45,000 square foot Publix for $18.7 million, the sale of 301 W Cabarrus, a 24,530 square foot commercial building, for $6 million, and the sale of the 2,800 square foot office building at 705 W North Street for $1.5 million 4
*This Q2 2026 Market Report is abridged in advance of the 2026 State of Downtown Raleigh report which will be released in August 2026.
DEVELOPMENT UPDATES:
+45,119 SF
NET ABSORPTION
Class A office space Q3 2025 - Q2 20261
+6,402
RESIDENTIAL UNITS
Site preparation, planned, or proposed Q2 20263
$144M
Food & beverage sales year to date through May 20263 TOTAL SALES
+5.4%
Q2 2026 visitor visits to Downtown year over year3 INCREASE
+12.9%
Q2 2026 visitor visits Glenwood South year over year3 INCREASE
+6.6% INCREASE
Hotel room sales revenue year over year April & May2
1JLL
2Wake County
3Placer.ai
4CoStar
5DRA
Overall, there is $8.4 billion of investment in the current Downtown Raleigh development pipeline.1 This includes an estimated $3.7 billion in projects completed since 2015, $1.5 billion in projects under construction, and $3.3 billion in proposed or planned developments.1
$3.7 Completed (since 2015) BILLION $1.5 Under Construction as of Q2 BILLION $3.3 in Site Preparation/ Proposed/Planned Developments BILLION $8.4 Completed since 2015, Under Construction, in Site Preparation, and Planned Developments BILLION
Oldham & Worth Delivers
Oldham & Worth, the second phase of the West End development, was completed in June, expanded the mixeduse project with 252 apartment units, 4,000 square feet of ground floor retail space, and amenities including a resortstyle pool deck, fitness studio, clubroom, coworking lounge, private outdoor lounge, pet spa, and woodshop.
20-Story Tower Planned Behind 307 W Martin Street
Site plans have been filed with the City of Raleigh for a 220-unit 20-story apartment tower behind 307 W Martin Street in the Warehouse District. The development will have a total of 20,984 square feet of retail space, including 3,745 square feet along Commerce Place.
Rosewood Begins Site Preparation
Site preparation has begun for Rosewood, with construction expected to begin later this year. The two building development will include 269 apartments and 5,500 square feet of retail space. Resident amenities will include a swimming pool, sauna, cold plunge, rooftop lounge and terrace, and speakeasy lounge.
Image: Oldham & Worth Credit: Kane Realty
Image: rendering of Rosewood at 601 W South St Credit: Cline Design
Image: proposed building as depicted in submitted site plan Credit: SK+I Architecture
CONTACT FOR QUESTIONS:
Gabriel Schumacher Director of Research
Downtown Raleigh Alliance gabrielschumacher@downtownraleigh.org
*This Q2 2026 Market Report is abridged in advance of the 2026 State of Downtown Raleigh report which will be released in August 2026.
Photo by Patrick Maxwell