RDU Office Quarterly Snapshot_Q3 2025

RALEIGH - DURHAM

OFFICE Q3 2025

QUARTERLY SNAPSHOT

MARKET TRENDS

Raleigh’s office market is recovering, with positive Class A net absorption through Q3 2025, driven by return-tooffice (RTO) policies. The current sentiment around RTO policies in Raleigh mirrors national trends but is shaped by the region’s unique economic and corporate landscape, particularly its tech-heavy Research Triangle Park (RTP) and major employers like Fidelity, Red Hat, and IBM. Employers are leaning toward hybrid RTO models (2-3 days in-office), with companies like Fidelity, Pendo, and RTI balancing collaboration with flexibility, while IBM’s stricter mandate signals a push for more in-office time. However, office utilization remains below pre-pandemic levels (nationally at 65.7% of 2019 levels), suggesting hybrid models will persist. The region’s tech employment concentration (lower than San Francisco but higher than diversified markets like Miami) supports a hybrid-heavy approach.

Much of the demand continues to be focused on top tier assets in Raleigh’s centralized submarkets. While the Durham Market continues to struggle, leasing velocity in the greater Raleigh metro remains steadfast and is anticipated to continue its positive momentum through year end 2025.

Landlords of Class A space are fighting to hold their face rates as construction pricing remains elevated, however, there’s a slight downward trend in asking rates as Landlord’s compete to backfill their vacancies.

Although vacancies are high compared to the market’s historical level, Class A vacancies remain below the national vacancy rate of 21% for Q3.

RALEIGH - DURHAM METROS

ALL CLASSES

Despite Class A office experiencing negative absorption for Q2, the YTD absorption remains in positive territory thanks to a robust Q1 and Q3. Class A continues to outperform all other classes in terms of absorption and activity.

2025 New Class A office leases signed has out performed every quarter compared to the same periods last year.

MARKET DATA

RALEIGH SUBMARKETS

FORKS/

Raleigh’s educated population, proximity to the internationally renowned Research Triangle Park, and relatively low cost-to-do-business sets the stage for an extraordinary office market. A substantial number of medical, tech, and financial firms are positioned within the metro. Total employment growth is more than double the national average and population growth more than triple.

ROUTE 1

MARKET DATA

OFFICE MARKET

DURHAM METRO

DURHAM SUBMARKETS

Located near the northern tip of the renowned Research Triangle Park, Durham is home to Duke University, in addition to a substantial number of healthcare, tech, and financial industry jobs. Firms continue to relocate and expand within the Durham metro, with recent quarters experiencing more than triple the rate of employment growth observed nationally.

TOP LEASES

NORTH CAROLINA RANKED

#1 BEST STATE FOR BUSINESS

FOR THE THIRD TIME IN FOUR YEARS, NORTH CAROLINA HAS BEEN NAMED THE #1 STATE FOR BUSINESS. NORTH CAROLINA HAS CONSISTENTLY RANKED IN THE TOP 5 SPOTS FOR ECONOMY, WORKFORCE, BUSINESS FRIENDLINESS AND EDUCATION.