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. 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