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2022 Q3 Industrial Raleigh-Durham Report

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Raleigh-Durham Industrial Fundamentals Follow Trends And Show No Signs Of Slowing

Key Takeaways

  • Wolfspeed announced a $5 billion investment and will develop an over 1 million square foot manufacturing facility in Chatham County. The facility will be producing silicon carbide wafers for semiconductor chips and is expected to create over 1,800 jobs.
  • While 814,309 square-feet was delivered in Q3, many of the deliveries came to the market pre-leased. This pre-leasing trend will persist as tenant demand continues to overshadow supply.
  • The largest lease of the quarter was MDLogistics for 240,000 SF at the newly delivered Building 4 at Garner Business Park 70.

Raleigh-Durham industrial fundamentals continued to follow trends established by previous quarters with no signs of slowing. Overall industrial market, warehouse and flex, asking rates climbed to $11.13, a 3.5% quarter-over-quarter increase. Asking rate increases among warehouse product were observed throughout the market, with a 7.9% quarter-over-quarter increase.  

Leasing volume totaled just under 600,000 square feet in the third quarter. Over 50% of leasing volume were preleases for new construction product which continued to highlight the trend of tenant demand outpacing supply. Blocks of space in existing product remain extremely limited under current market conditions. Despite limited availabilities among existing product and sites for development, Raleigh-Durham continued to be a prime market for investment with over 4.5 million square feet of warehouse under construction.

Net absorption for warehouse closed the quarter at 75,409 square feet, with recent spec deliveries being major contributors; MDLogistics signed and occupied 240,000 square feet at Building 4 at Garner Business Park 70 which delivered in the third quarter. As tenant demand remains elevated, new product deliveries are expected to provide the bulk of future absorption.


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2022 Q3 Industrial Raleigh-Durham Report

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