MARKET TRENDS

• Q2 2024 represents the highest vacancy in the Raleigh market in recent history at 5.5%, fueled largely by recent deliveries coming to market unleased. Vacancy is expected to rise as 58% of the pipeline consists of additional speculative properties.
• Net absorption this quarter was just 100,000 square feet and is representative of the absorption slowdown experienced in the Raleigh market since Q4 2022. Although positive, this may indicate that industrial demand in Raleigh is slowing.
• The asking rental rate for the Raleigh industrial market has been steadily rising since Q2 2022 but will likely remain flat until new speculative properties get leased and vacancy stabilizes.

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