Market Report - Lincoln Harris · Market Report RALEIGH, NC OFFICE MARKET Q1 2019 Office Market...
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Market Report RALEIGH, NC OFFICE MARKET Q1 2019 Office Market Snapshot Market Supply (SF) Under Construction (SF) Direct Vacancy (%) Total Vacancy (%) Total Net Absorption (SF) YTD Net Absorption (SF) Direct Asking Rent Class A Direct Asking Rent Class B Direct Asking Rent 69,613,020 1,877,541 8.1% 8.4% 748,318 748,318 $25.94 $28.56 $22.26 1Q 2019 CHANGE 69,004,808 2,637,404 8.0% 8.4% 941,380 2,367,413 $25.47 $28.10 $22.16 4Q 2018 San Jose Charlotte Las Vegas Raleigh Fort Lauderdale Seattle Sacramento Minneapolis Atlanta Portland, OR 8.0% 6.7% 6.3% 6.2% 6.0% 5.6% 4.8% 4.7% 4.4% 4.3% Top 10 Rent Growth Markets HIGHLIGHTS Office Submarkets Raleigh-Durham is the 10th fastest growing metro area in the United States by total population percentage, growing nearly +21% between the years 2010-2018. Recent first generation sales, including The Station at East 54 and Legacy at Brier Creek, are quickly moving Raleigh-Durham office investment pricing in-line with other highly sought after U.S. markets like Charlotte, Austin, TX , and Nashville, TN. Raleigh ranked as the #3 “Surge City” in America in a 2019 report from Inc. Magazine that identified the top 50 places to start a business. Nearly 900k square feet of new office space was delivered in the Triangle during the first quarter of 2019, led by One Glenwood at the intersection of Hillsborough Street and Glenwood Avenue and two new additions to Perimeter Park along the I-40 corridor. 440 540 40 85 Office Market Statistics Inventory Completions Construction 1Q 2019 Absorption 1Q 2018 Absorption Direct Asking Rate Vacancy Rate Vacant Space Submarket 395,776 168,571 564,347 521,514 750,089 131,169 180,971 307,593 116,511 622,162 297,590 1,839,982 545,010 0 5,312,591 5,876,938 7.8% 2.6% 4.9% 7.4% 8.1% 4.9% 16.3% 14.0% 5.3% 6.9% 7.1% 17.6% 6.4% 0.0% 9.2% 8.4% -100,370 172,123 71,753 61,718 252,549 -21,730 17,984 -15,930 15,218 96,147 -8,041 176,473 102,177 0 676,565 748,318 -5,319 44,903 39,584 146,319 30,910 64,150 0 -60,540 1,066 -28,431 65,837 57,232 59,304 200 336,047 375,631 - - - - 309,000 - - - 31,932 306,431 - - 227,500 - 874,863 874,863 252,905 149,842 402,747 390,000 - 174,000 100,000 - 31,854 301,700 0 152,456 324,784 - 1,474,794 1,877,541 $32.15 $31.60 $31.96 $28.17 $27.08 $25.35 $15.10 $27.64 $19.87 $25.18 $24.74 $22.14 $29.37 $28.83 $25.23 $25.94 5,089,640 6,519,674 11,609,314 7,069,888 9,249,028 2,684,593 1,107,973 2,196,326 2,184,328 9,055,106 4,211,369 10,451,818 8,519,419 1,273,858 58,003,706 69,613,020 Downtown Durham Downtown Raleigh URBAN TOTALS 6 Fork Falls Of Neuse Cary Glenwood/Creedmoor North Durham Orange County Route 1 RDU/I-40 South Durham Research Triangle West Raleigh East Raleigh SUBURBAN TOTALS RALEIGH TOTALS
Transcript of Market Report - Lincoln Harris · Market Report RALEIGH, NC OFFICE MARKET Q1 2019 Office Market...
Market Report R A L E I G H , N C O F F I C E M A R K E T
Q1 2019
Office Market SnapshotMarket Supply (SF)Under Construction (SF)
Direct Vacancy (%)Total Vacancy (%)Total Net Absorption (SF)YTD Net Absorption (SF)
Direct Asking RentClass A Direct Asking RentClass B Direct Asking Rent
69,613,0201,877,541
8.1%8.4%
748,318748,318
$25.94$28.56$22.26
1Q 2019 CHANGE69,004,8082,637,404
8.0%8.4%
941,3802,367,413
$25.47$28.10$22.16
4Q 2018
San JoseCharlotteLas Vegas
RaleighFort Lauderdale
SeattleSacramentoMinneapolis
AtlantaPortland, OR
8.0%6.7%6.3%6.2%6.0%5.6%4.8%4.7%4.4%4.3%
Top 10 Rent Growth Markets
HIGHLIGHTS
Office Submarkets
Raleigh-Durham is the 10th fastest growing metro area in the United States by total population percentage, growing nearly +21% between the years 2010-2018.
Recent first generation sales, including The Station at East 54 and Legacy at Brier Creek, are quickly moving Raleigh-Durham office investment pricing in-line with other highly sought after U.S. markets like Charlotte, Austin, TX , and Nashville, TN.
Raleigh ranked as the #3 “Surge City” in America in a 2019 report from Inc. Magazine that identified the top 50 places to start a business.
Nearly 900k square feet of new office space was delivered in the Triangle during the first quarter of 2019, led by One Glenwood at the intersection of Hillsborough Street and Glenwood Avenue and two new additions to Perimeter Park along the I-40 corridor.
440
54040
85
Office Market StatisticsInventory Completions Construction 1Q 2019
Absorption1Q 2018
AbsorptionDirect
Asking RateVacancy
RateVacantSpace
Submarket
395,776168,571
564,347 521,514750,089131,169180,971307,593116,511
622,162297,590
1,839,982545,010
0
5,312,591 5,876,938
7.8% 2.6%4.9% 7.4% 8.1% 4.9% 16.3% 14.0% 5.3% 6.9% 7.1%
17.6% 6.4% 0.0%
9.2% 8.4%
-100,370172,123 71,753 61,718
252,549-21,73017,984
-15,93015,21896,147-8,041176,473102,177
0
676,565 748,318
-5,31944,90339,584146,31930,91064,150
0-60,540
1,066-28,43165,83757,23259,304
200
336,047 375,631
----
309,000- - -
31,932 306,431
- -
227,500 -
874,863 874,863
252,905149,842402,747 390,000
-174,000100,000
-31,854
301,7000
152,456324,784
-
1,474,794 1,877,541
$32.15$31.60$31.96$28.17$27.08$25.35$15.10$27.64$19.87$25.18$24.74$22.14$29.37$28.83
$25.23$25.94
5,089,6406,519,674
11,609,3147,069,8889,249,0282,684,5931,107,9732,196,3262,184,3289,055,1064,211,369
10,451,8188,519,4191,273,858
58,003,706 69,613,020
Downtown DurhamDowntown Raleigh
URBAN TOTALS6 Fork Falls Of NeuseCaryGlenwood/CreedmoorNorth DurhamOrange CountyRoute 1RDU/I-40South DurhamResearch TriangleWest RaleighEast Raleigh
SUBURBAN TOTALS RALEIGH TOTALS
New Office Space Under Construction390,000
225,000
209,145
154,987
152,456
140,000
130,000
115,000
97,462
6 Forks Falls of Neuse
Downtown Durham
West Raleigh
Downtown Raleigh
Research Triangle
Glenwood/Creedmoor
Glenwood/Creedmoor
West Raleigh
RDU/I-40
SUBMARKETTower IV at North Hills
555 S. Mangum St
Wade V
FNB Tower
Triangle 54 - Building I
Crabtree Terrace
GlenLake Seven
3800 Glenwood Ave
3300 Paramount Parkway
BUILDINGKane Realty
Northwood Ravin
Dominion Realty Partners
Dominion Realty Partners
The Keith Corporation
East West Partners
Highwoods Properties
Grubb Ventures
Trinity Capital Advisors
DEVELOPER/OWNER SF ASKING RENTS$38.50
$34.50
$32.00
$35.50
$28.50
$35.50
Withheld
$37.50
$26.50
MAJOR TENANT(S)IAT Insurance
Spaces
NA
First National Bank
Rho, Inc.
Spaces
Highwoods Properties
Brasfield & Gorrie
Varonis
Recent Investment SalesOrange County
RDU/I-40
Glenwood/Creedmoor
RDU/I-40
SUBMARKETThe Station at East 54
Forty540
Legacy at Brier Creek
3900 N Paramount Pkwy
BUILDING47,856
195,521
129,000
224,850
RBA$19,925,000
$58,100,000
$34,100,000
$48,305,000
SALE PRICE PRICE/SF$416
$297
$264
$215
Market Data Source: CoStar data pulled 5.2.19 | Real Capital Analytics | Triangle Business Journal | Lincoln Harris Research
FOR QUESTIONS, CONTACT: Tyler Ashley, Research Analyst
704.714.7663 [email protected]
A record high $1.9 billion was traded across Raleigh office assets in 2018.
Market Report R A L E I G H , N C O F F I C E M A R K E T
Q1 2019
Signed Lease TransactionsBUILDINGTENANT SIZE TYPECrossroads Corporate Park
DurhamiD - 300 Morris St
Palisades II
One Glenwood
Wake County Board of Education
WeWork
Kuehne & Nagel
Issuer Direct
249,605
74,937
21,234
9,776
Renewal/Expansion
New
Renewal
New
SUBMARKETCary
Downtown Durham
West Raleigh
West Raleigh
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