Raleigh/Durham’s leasing volume increases again, despite ongoing rise in availability

The Research Triangle’s office market continues to show signs of life as more companies return to work in person, move forward with restructuring and/or relocation plans, and companies from outside the region flock to the Triangle. In Q1 2022, 103 total office leases were signed, marking the highest lease count for a single quarter in five years. 50 of the leases signed in Q1 were for Class A office spaces. This demonstrates the overall flight to quality on the part of tenants who are highly focused on recruitment and retention when navigating return-to-office plans. Still despite the increase in lease count, volume remains tepid. In Q1 2022, leasing volume totaled 534,651 square feet (sf) which dropped slightly from 559,483 sf reported in Q4 2021. This decrease in the total square feet leased compared to how many leases were signed shows a movement towards downsizing of space, reflecting the increased impact of the remote work business model.

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