What is the COVID recession? Triangle commercial property market remains strong, report says

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RALEIGH – According to the latest CBRE Industrial Market Report, which analyzes data for the second quarter of the year, there are signs that commercial property continues to be in high demand in the Triangle despite the ongoing COVID problem.

“The industrial market in Raleigh-Durham continues to be characterized by low vacancies,” the report says, “while the influx of manufacturing companies and the robust growth of the life sciences sector continue to create strong demand.”

The report noted an increase in the amount of vacant space from 8.3% in the first quarter of the year to 9.2% in the second quarter of the year, but the demand for warehouse space also increased. The vacancy rate in this part of the market fell to 4% in the second quarter from 4.7% in the first quarter.

Rental rates increased for both warehouse space and flexible space, reaching $ 6.09 per square foot NNN and $ 12.63 per square foot NNN at the end of the quarter, respectively.

“The decline in job vacancies has pushed companies to look at marginal market areas, while Research Triangle Park has historically been the focus of many of these industry users,” CBRE said in a press statement, noting that submarkets in the east or south Wake County is currently seeing an increase in demand and activity.

“Industrial stocks across the Triangle remain scarce,” said Dodson Schenk, CBRE’s director of industrial and logistics services. “As companies continue to invest in our marketplace, job openings are dwindling and developer opportunities continue to grow.”

Schenck said an additional 1.5 million square feet of floor space is currently under construction at Triangle, adding that this additional square footage “will greatly contribute to the future availability of our industrial market.”

Industrial and life sciences are booming in the Triangle

The report notes that leasing activity remained high in the second quarter. CBRE noted that the company has leased 158,000 square feet of space. BlueSky solutions, electronics processor, Park Communications leases of 168,800 square feet of new space, and lease renewals for 111,000 square feet of space, and Upper Deck Company leases 126,000 square feet of space as the first tenant of Alexander Commerce Park, which will serve as headquarters on the east coast, according to making report from REBusiness Online in July 2021.

CBRE report An analysis of the commercial office market in Triangle, published earlier this month, showed that the office vacancy rate was 13.02%, slightly higher than in the previous quarter. But according to the data, rents for Class A office space have risen to nearly $ 30 per square foot.

Triangle office space sparks interest due to pandemic, real estate service provider says



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