While the Raleigh-Durham office market is showing signs of recovery and increased leasing activity, there is concern over the impact that the amount of sublease space and corporate occupancy downsizing will have on future vacancy.
• Class A rents in non-core submarkets began to outpace Class A asking rents in the urban core, with the Route 1/Capital Blvd submarket surpassing the Downtown Raleigh and Downtown Durham submarkets.
• Two significant Class A subleases were completed. Carpenter Technologies and Interelad subleased a combined ±60,000 SF in the Six Forks/Falls of Neuse submarket.
• Nelson Mullins Riley & Scarborough LLP signed a lease for the full 14th floor at 301 Hillsborough at Raleigh Crossing. With this transaction, Fallon’s downtown tower reached 55% leased.
• Spectrum Companies sold Regency Woods II to GI Partners for $53.9 million or $359 PSF, and Credit Suisse sold their headquarters on Louis Stephens Drive for $92 million or $449 PSF.