Snapshots

Seeking returns, investors up the ante on asking rents in Raleigh-Durham

2018 was a monolithic year for office sales in the Raleigh-Durham market.

January 16, 2019
  • 2018 was a monolithic year for office sales in the Raleigh-Durham market. The quick stats:
    • 79 buildings traded
    • $1.9 billion total sales volume
    • $224.67 average price per square foot
  • In year-over-year comparisons, Raleigh-Durham’s asking rent increased a whopping 8.5 percent, and new owners looking to take advantage of a rapidly growing market have been quick to raise asking rents:
    • Venture Center at Centennial Campus saw rents increase 16.8%, jumping from $28.25 p.s.f. FS to $33.00 p.s.f. FS in 2018
    • Wells Fargo in Downtown Raleigh is averaging $33.00 p.s.f. FS, up from $29.50 p.s.f. FS in 2017
  • Looking forward, rent increases are expected across the board as investors look to maximize their return on investment. With over 2.0 million square feet under development and a Class A average asking rate nearing $29.00 p.s.f. FS, the question becomes: what’s next for Raleigh-Durham?

Source: JLL Research

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