The Raleigh/Durham retail market did not experience much change in market conditions in the fourth quarter 2013.
The vacancy rate went from 6.0% in the previous quarter to 5.8% in the current quarter. Net absorption was positive 229,138 square feet, and vacant sublease space decreased by (18,090) square feet. In third quarter 2013, net absorption was positive 114,600 square feet.
Tenants moving into large blocks of space in 2013 include: Walmart Market moving into 45,000 square feet at Morrisville Market; Dick's Sporting Goods moving into 40,020 square feet at 120 Grand Hill Place; and Dave and Buster's moving into 30,000 square feet at Cary Towne Center.
Quoted rental rates increased from third quarter 2013 levels, ending at $14.73 per square foot per year.
A total of two retail buildings with 6,325 square feet of retail space were delivered to the market in the quarter, with 370,836 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Retail
vacancy rate, which decreased to 6.6% from the previous quarter, with net absorption positive 21.28 million square feet in the fourth quarter. Average rental rates increased to $14.59, and 563 buildings delivered to the market totaling more than 10.4 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.