RALEIGH – When it comes to leasing office space in the Triangle, it’s a “landlord’s market.”
That’s according to one expert speaking at the 35th Annual Triangle Commercial Real Estate Conference on Wednesday.
“Vacancy here has dropped for the third year in a row to single digits in 2019 – around eight percent in the overall office market,” Jimmy Barnes, president at NAI Carolantic Realty, told a 1,500-strong crowd gathered for the event at PNC Arena in Raleigh.
In Raleigh, it’s at a record-low of around five percent, while in RTP vacancy is hovering around 13 percent – down from around 22 percent in 2010.
“Tenants are slowly gathering that it’s a landlord’s market,” Barnes said.
On top of that, construction is booming to keep up with demand.
Barnes reported 4.5 million square feet of construction – including 2.3 million square feet of office space — in 2019. Another 7.5 million square feet of new construction is planned for 2020. That includes 3.1 million square feet of office space.
“If there’s anything said about real estate community or regions, this area is always at the top,” he said.
“You’ve got companies that are growing. They’re hiring employees; they’re buying computer equipment and IT equipment. You’ve got architects and engineers involved. It’s got a dramatic impact [across sectors] on this region.”
Added Greg Sanchez, president at Tri Properties: “The market’s hot, and it’s got great momentum.”
Late last year, Tri Properties and NAI Carolantic Realty, two of the Triangle’s leading commercial real estate firms, announced a merger, creating one of the largest full-service brokerage companies in the region.