The Raleigh/Durham Office market ended the fourth quarter 2013 with a vacancy rate of 10.8%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 243,898 square feet in the fourth quarter. That compares to positive 172,222 square feet in the third quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 191,827 square feet.
Tenants moving into large blocks of space in 2013 include: Red Hat, Inc. moving into 326,280 square feet at Two Progress Plaza; MetLife moving into 116,300 square feet at Danbury Hall; and The Durham County Health Department moving into 106,000 square feet at 414 East Main Street.
Rental rates ended the fourth quarter at $18.67, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 28,410 square feet, with 1,245,844 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office
vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 25.62 million square feet in the fourth quarter. Average rental rates increased to $22.06, and 177 buildings delivered to the market totaling more than 11.7 million square feet.
The information in this news report is based on CoStar’s Fourth Quarter 2013 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.