Raleigh Office Market Report

Various tailwinds fuel local office fundamentals. For a second consecutive year, local construction activity will be limited, with inventory expanding at the metro’s slowest pace in roughly two decades. Scant deliveries will coincide with a handful of expansions by small and midsized companies. This dynamic will help bolster net absorption, supporting a decline in vacancy that lowers the local year-end rate below 15 percent for the first time since 2022. Vacancy will nonetheless remain elevated relative to historical norms. However, long-term commitments like Apple’s planned RTP campus and BuildOps’ Raleigh tech hub bode well for future office demand. These large-scale expansions should lift the space needs of ancillary firms. Meanwhile, a highly skilled labor pool anchored by major universities will continue to provide these employers with ample talent, supporting a broader base of office demand.