Raleigh-Durham, NC | 3Q 2012
Net absorption in the Triangle office market moved back into positive territory
during the second quarter after a brief dip into negative net occupancy in the first
quarter of the year. With net move-in activity summing to a modest 35,096 square
feet, vacancy fell by 10 basis points quarter-over-quarter to 17.0 percent. These
numbers seem to suggest a slowly improving employment and occupancy picture, but
the reality is more nuanced as the market is battered by large office closures,
even as other companies with significant local operations announced large-scale
expansionary efforts.
An encouraging sign is that the area’s largest leases signed in second quarter were
all expansionary in nature as FHI 360 looks to move from Headquarters Park to 95,000
square feet in under construction Diamond View III, Bandwidth.com plans to expand
into 72,418 square feet of subleased Red Hat space at Venture Center III, and Lenovo
has signaled its need for pure expansionary space on two floors at 5221 Paramount
Parkway adjacent to its two primary facilities. With the signed leases already in
place in the Triangle, as well as Citrix’s ongoing search for 50,000 square feet
in Raleigh, net absorption is expected to be strongly positive during third quarter
on the order of 125,000 square feet as signed and pending expansions are enacted.
VIEW THE FULL REPORT: RE:Source (a brief overview of market happenings with an
eye towards overall market movements)
