Direct office availability rises, as sublease space continues to fall

In the second quarter of 2024, Raleigh-Durham’s availability rate increased to 22.8%. This is an increase of 100 basis points (bps) year over year. The availability rate has been steadily rising due to occupiers resizing to match hybrid work models, and new projects delivering over the past 24 months. Two Class A office buildings in the Six Forks / Falls of Neuse submarket delivered 360,000 square feet (sf) in the second quarter, both averaging only 19% preleased at delivery. Despite direct availability rising, sublease space has been steadily decreasing. Sublease space decreased 20% year over year, totaling 3.5 million square feet (msf) in Q2 2024. As occupiers finalize their long-term office plans, expect sublease space to drop further.

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