Q3 2025 MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS:
There are 15 developments under construction that will collectively deliver 1,003 residential units, 342 hotel rooms, and 60,560 square feet of storefront space upon completion. Year to date, 1,101 apartment units and 52,267 square feet of storefront space have been delivered. An additional 37 projects are currently in planning or have been proposed.
The Holston at The Weld, the first of two apartment towers in phase one, has completed construction adding 283 apartment units to the southwest corner of Downtown Raleigh. Construction began on the Highline Glenwood South, which will become Raleigh’s tallest residential tower at 37 stories and add 306 luxury apartments, including 16 penthouse units.
Class A office net absorption in Q3 totaled +43,785 square feet, bringing the year-to-date total to +132,659 square feet. Downtown Raleigh’s direct office vacancy rate remains the lowest among major submarkets in the Raleigh–Durham region at 13.7%. Average asking rent for Class A office space held steady at $39.72 per square foot, unchanged year over year.
PROJECTS UNDER CONSTRUCTION1
15 Q3 2025
1,101 RESIDENTIAL UNITS DELIVERED1 YEAR-TO-DATE
+132,659 SF CLASS A OFFICE NET ABSORPTION3 YEAR-TO-DATE
2CoStar 3JLL *Stabilized occupancy does not include recently completed projects
Photo: recently completed Maeve apartmtents Credit: Capital Square
There were 21 new storefront business openings and 10 closures in Q3, resulting in a net gain of 11 businesses. An additional 29 storefront businesses have publicly announced plans to open in the near future.
Average monthly food and beverage sales for the first two months of Q3 increased +2.3% year over year in Downtown Raleigh. The Seaboard & Person Street District led all districts with a +21.8% increase, followed by the Moore Square District with a +14.8% gain over the same period last year.
Downtown Raleigh welcomed over 2.2 million unique visitors in Q3. Visitor visits to Downtown Raleigh increased +3.5% year over year, with the Glenwood South District recording the largest increase at +13.2%.
Hotel room tax revenue in July and August rose +5.3% compared to the same period last year. Site preparation work has begun on the future 138-room TownePlace Suites by Marriott located at 415 S Blount Street.
Notable property sales in Q3 included 122 S Salisbury Street, a two-story building constructed in 1920, which sold for $1,325,000, and 324 S Harrington Street, an 11,000-square-foot building in the Warehouse District, which sold for $2,331,000.
+43,785
Class A Office Total Net Absorption Q3 20255
+13.2%
INCREASE
Total Visits To Glenwood South Year Over Year Q3 20253
$26.9M
Estimated Average Monthly Food & Beverage Sales July & August2
+5.3% INCREASE
Average Monthly Hotel Room Sales Revenue From Q3 20252
+11
Storefront Businesses Q3 20253 NET GAIN
1DRA
2Wake County
3Placer.ai
4CoStar
5JLL
DEVELOPMENT UPDATES:
Overall, there is $8.3 billion of investment in the current Downtown Raleigh development pipeline.1 This includes an estimated $3.3 billion in projects completed since 2015, $1.5 Billion in projects under construction, and $3.5 billion in proposed or planned developments.1
$3.3 Completed (since 2015) BILLION $1.5 Under Construction as of Q3 BILLION $3.5 in Site Preparation/ Proposed/Planned Developments BILLION $8.3 Completed since 2015, Under Construction, and Planned Developments BILLION
The Holston at The Weld Delivers
The first of two towers in phase one of The Weld, The Holston, has completed construction, adding 283 apartment units and 5,533 square feet of groundfloor retail space to the southwest corner of Downtown Raleigh. The second tower in phase one, Ray, has topped out and is scheduled to deliver this winter, continuing to expand the growing mixed-use district.
Site Prep Begins on TownePlace Suites
Site preparation work has begun on the future 138-room TownePlace Suites by Marriott. The hotel will be located at 415 S Blount Street in the Moore Square District and will share parking with the adjoining Acorn on Person Street apartments which completed in 2024.
Highline Glenwood Breaks Ground
Site preparation work has begun on the Highline Glenwood, a 37-story apartment tower that will become Raleigh’s tallest residential building. The project will add 306 luxury apartments, including 16 penthouse units. Resident amenities will include a golf simulator, co-working space, yoga studio, and pool. A future phase of the Creamery redevelopment includes a second development site that can accomodate an additional 300 residential units or 300,000 square feet of commercial space.
Image: TownePlace Suites rendering Credit: Summit Hospitality Group, LTD.
Image: The Holston at The Weld Credit: Mack Real Estate Group
Image: Highline Glenwood rendering Credit: Turnbridge Equities
Q3 2025 DEVELOPMENT MAP
An interactive development map with updated listings of project information and images is viewable at downtownraleigh.org/ do-business/ developments
3
1
UNDER CONSTRUCTION
OFFICE
Class A office net absorption in Q3 totaled +43,785 square feet, bringing the year-to-date total to +132,659 square feet. Downtown Raleigh’s direct vacancy rate, at 13.7%, is the lowest among major submarkets in the Raleigh–Durham Market. Average asking rent for Class A office space remains steady at $39.72 per square foot, unchanged year over year.
Notable leasing activity this quarter includes LNW Gaming’s 25,731 square foot lease at 1 Glenwood Avenue and Yodlee, Inc.’s 7,084 square foot lease at 333 Fayetteville Street.
INDICATOR:
MARKET HIGHLIGHTS OFFICE MARKET 1JLL 2CBRE 3DRA
+43,785 SF Class A Office Net Absorption1 $39.72 Class A Office Average Rent PSF1
6,424,512 SF Total Office Inventory2 86.3% Class A Office Occupancy Rate1
Class A Delivered Since 20203 Q3 2025
898,412 SF
+132,659 CLASS A OFFICE NET ABSORPTION YEAR-TO-DATE¹
Photo: Class A office towers along Hillsborough Street Credit: Matt Robinson RaleighSkyline
Downtown Raleigh has averaged +248 apartment units absorbed per quarter over the past year, including 319 units absorbed in Q3 2025. The Holston at The Weld delivered in Q3 2025, adding 283 apartment units and 5,533 square feet of ground-floor retail space. Construction began on the Highline Glenwood, which will become Raleigh’s tallest residential building at 37 stories and add 306 luxury apartment units. Across Downtown Raleigh, 1,003 residential units are currently under construction or in site preparation across six projects, with an additional 6,342 units proposed or in planning across 24 developments.
PERFORMANCE INDICATOR: APARTMENT UNITS ABSORBED2
RESIDENTIAL MARKET Q3 2025
Stabilized Occupancy1 $1,931 Average Asking Rent per Unit1
Residential Units Delivered Q3 20252
283
1,003 Units Under Construction2*
Residential Inventory2
10,709 units
1CoStar 2DRA
*Includes projects in site prep 91.7%
1,577 units ABSORBED SINCE Q4 20231
QUALI-
Photo: Downtown Raleigh skyline view from The Holston Credit: Mack Real Estate Group
STOREFRONT MARKET HIGHLIGHTS
There were 21 new storefront business openings and 10 closings for a net gain of 11 businesses in Q3 while another 29 storefront businesses have publicly announced plans to open in the near future. Year to date, 52,267 square feet of new retail space has been added to Downtown Raleigh’s inventory, including 5,533 square feet at the recently completed Holston at The Weld apartment development.
Total visitor visits to Downtown Raleigh increased +3.5% year over year in Q3, with the Glenwood South District seeing the largest gain at +13.2%.
PERFORMANCE INDICATOR:
TOTAL VISITOR VISITS TO DOWNTOWN RALEIGH2
RETAIL MARKET
Q3 2025
21 New Storefront Business Openings & Expansions (Q3)1
29 Storefront Business Coming Soon1
Retail SF Under Construction1
60,560
Retail SF Planned or Proposed1
253,624
1DRA 2Placer.ai 3News & Observer
+3.5% increase
TOTAL VISITOR VISITS YEAR OVER YEAR1
Photo: Littlest Shoppe at 424 S. Person St Credit: Sarah Devoti
STOREFRONT MARKET HIGHLIGHTS
Average monthly food and beverage sales for the first two months of Q3 in downtown increased by +2.3% over the same period last year. The monthly average for the Seaboard Person District increased by +21.8% year over year, the most of any district, while the Moore Square District saw an increase of +14.8%.
PERFORMANCE INDICATOR:
AVERAGE MONTHLY FOOD AND BEVERAGE SALES BY QUARTER1
FOOD AND BEVERAGE SALES BY DISTRICT IN Q31
Capital District Glenwood South
Seaboard Person District
Warehouse District
RETAIL MARKET Q3 2025
Average Monthly Food & Beverage Sales in Q31*
$26.9 MILLION
$26.3 Million in Q3 2024
Restaurants & Bars In Downtown2
285+
Moore Square District
8 Craft Breweries & Distilleries In Downtown2
1Wake County Tax Administration, DRA *Only July & August 2025 data available 2DRA
Fayetteville Street
+2.3% INCREASE Q3 2024 TO Q3 2025*1
Photo: patio at Press, Coffee, and Crepes & Cocktails
Credit: Sarah Devoti
Q3 2025 STOREFRONT BUSINESS ACTIVITY
HOTEL & TOURISM MARKET HIGHLIGHTS
Site preparation work has begun on the future 138-room TownePlace Suites by Marriott. Construction crews continue to transform the round Holiday Inn into a 204-room Hotel Indigo. There are an additional 1,274 hotel rooms planned or proposed across 5 additional projects.
Total hotel room tax revenue collected in July and August increased +5.3% compared to the same period last year.* Downtown Raleigh welcomed over 2.2 million unique visitors in Q3.
HOTEL + TOURISM MARKET
Q3 2025
1,747 Hotel Room Inventory3
342 Hotel Rooms Under Construction or Renovation3
2.2M Unique Downtown Visitors in Q32
$11.2M Average Monthly Hotel Room Revenue Q3*
PERFORMANCE INDICATOR: DOWNTOWN AVERAGE MONTHLY HOTEL ROOM REVENUE1
1Wake County Tax Administration, DRA 2Placer.ai 3DRA *Only July & August Data Available
+5.3% INCREASE Q3 2025 AVERAGE MONTHLY HOTEL ROOM REVENUE YEAR OVER YEAR1*
Photo: High Rail Raleigh at the Hyatt House Downtown Raleigh Credit: Hoffman & Associates
NEWS & EVENTS
City of Raleigh Dockless E-Bike Pilot Program
Raleigh launched a new dockless e-bike pilot in August, in partnership with Spin and Lime. The program introduces 215 electric-assist bikes citywide and allows riders to locate, unlock, and park bikes using either app. The pilot program is replacing the station-oriented Cardinal Bikeshare and will run through April 2026.
Coming Soon: Downtown Raleigh Gift Card
The new Downtown Raleigh Gift Card program will launch in November 2025, allowing customers to purchase e-gift cards in any amount up to $250. Digital cards may be redeemed at any downtown business who has opted into the program. The program supports volume discounts and is mobile wallet-friendly.
15th Annual Hopscotch Music Festival
Hopscotch Music Festival took place September 4–6, 2025, continuing its tradition of bringing nationally recognized artists and local talent to venues throughout Downtown Raleigh. Since its founding in 2010, the festival has grown into a community-centered celebration of music, art, and culture that draws visitors from across the country.
Image: Downtown Raleigh Alliance Gift Card Credit: Justice Dunne
Image: Hopscotch Music Festival’s stage on City Plaza Credit: Hopscotch Music Festival
Image: SPIN Dockless E-Bikes
15,600+
43,300+
21.7M Visitor Visits Per Year2
33.6
145K
Median Age1 Average Household Income1
68.2% Resident Population1 Employees Within 1 Mile of the State Capitol1
Bachelor’s Degree or Higher1
40.5% Of population between ages 20-341
ABOUT DOWNTOWN RALEIGH ALLIANCE (DRA)
DRA has a mission of advancing the vitality of Downtown Raleigh for everyone. DRA facilitates this mission through five goals:
Improve downtown economy through recruitment, pop-ups, financial support, research, marketing & promotions;
Advocate to make downtown a place for everyone that reflects evolving needs and interests of the community and lessons learned from the recent past;
Make downtown an engaging place to live, work, and visit through safe activations that appeal to a wide variety of stakeholders;
Improve and maintain a sense of safety and security in downtown through our Ambassador program, Social Services and work with RPD; and,
Elevate and improve DRA’s internal organization and processes through improved database, project management, communication, financial stewardship, and planning.
For additional information and resources visit: downtownraleigh.org/do-business
DOWNTOWN BOUNDARY AND DISTRICT MAP 1 2 3 4 5
CONTACT FOR QUESTIONS:
Gabriel Schumacher Research Director
Downtown Raleigh Alliance 919.821.6981 // gabrielschumacher@downtownraleigh.org
Photo by Patrick Maxwell