MARKET TRENDS

• The Raleigh vacancy rate rose 20 basis points (bps) quarter over quarter to 5.6%, the highest in seven years, driven by weak year-to-date net absorption of 850,000 square feet (sf), just 40% of the 2.1 million square foot (msf) year- to-date average over the last five years.
• Asking rental rates in Raleigh increased for the fourth consecutive quarter, reaching $9.48 per square foot (psf), the highest level ever. However, rent growth has slowed significantly over the past two quarters and is expected to remain flat until vacancy rates stabilize
• Construction starts increased this quarter, with the pipeline rising 21.6% to 3.8 msf, highlighting developer confidence and growing appeal to biomanufacturing occupiers like Novo Nordisk, following their recent investment in Johnston County.

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