Leasing activity remains at a record low, but the size of deals has picked up in the Raleigh/Durham market

As occupiers plan to reengage with their office space, they will be able to leverage softening market conditions and take advantage of the landlords that have large availabilities in their portfolio. In the first quarter of 2021, we saw a new record low in leasing activity, 590,554 square feet (sf), down 28% over the quarter and 46% from Q1 2020. Almost half of leasing activity (44%) came from a single transaction closed by California-based company, Adverum Biotechnologies, which leased 262,667 sf in a new facility at 14 Tw Alexander Drive in the Research Triangle submarket. The life sciences sector has been an important demand driver throughout the pandemic. As the vaccinated population increases, leasing activity will likely follow suit with a pick-up in demand as tenants feel safer in their office environments and more comfortable signing new lease agreements.

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