Raleigh Office Investment Forecast
Tech and Life-Science Entrants Power Outlook;
Office Market Recovery Ahead of the National Pace
Comparatively low rents lead to high levels of space retention. The Raleigh metro has experienced fewer tenant exits and a smaller percentage of available sublet space during the health crisis than other major metros due to its lower rent costs. Meanwhile, the flourishing technology and life-science sectors continue to draw additional coastal firms to the metro, as they seek to make use of Raleigh's young and educated workforce while saving on costs. Recently, Invitae committed to 250,000 square feet in Research Triangle Park while Apple continues construction of a 1 million-square-foot campus in the same locale. Meanwhile, Google is planning an expansion to its cloud computing hub in Durham and software firm Bandwidth is building a new, nearly 450,000-square-foot headquarters in Raleigh. Apart from these projects, rising construction costs will hold 2022 deliveries well below last year's figures. Limited development and strong leasing trends should work in concert to reduce vacancy and elevate rents higher this year.