Q3 2023
MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: Downtown Raleigh is growing with 18 developments under construction and when completed they will deliver 2,472 residential units, 410 hotel rooms, 155,610 square feet of office space, and 160,679 square feet of retail. An additional 47 planned and proposed developments would bring 7,256 residential units, 1,840 hotel rooms, 587,220 square feet of office space, and 236,956 square feet of retail. Downtown Raleigh’s stabilized apartment occupancy rate is 94.4% and effective rent have decreased slightly year over year at $2.23 per square foot.3 Stabilized occupancy does not include recently completed developments. The Platform at 600 W Cabarrus is now welcoming residents to move into 442 units in the growing Warehouse District. A total of 3,221 residential units are either under construction or have delivered so far this year. Downtown’s direct vacancy rate for office space, which does not include sublease space available for immediate occupancy, ended the quarter at 12.5%, decreasing slightly from 14.7% in Q3 2022.4 Average Class A rent remains flat year over year at $39.72 per square foot.4 400H is expected to deliver 144,410 square feet of Class A space in the fourth quarter.
DOWNTOWN RALEIGH Q3 2023 MARKET REPORT
Photo: AK Photography
18
DEVELOPMENTS UNDER CONSTRUCTION1
Q3 2023
2,472
RESIDENTIAL UNITS UNDER CONSTRUCTION1
Q3 2023
+30
NET GAIN IN STOREFRONT BUSINESSES1
YEAR TO DATE DRA
1
CBRE 3CoStar 4 JLL 2
1