The Raleigh-Durham market is thriving as unemployment rates drop, nonfarm employment numbers rise, and exciting corporate announcements were made in the beginning of 2022. The following Industrial Five Fast Facts explore the key trends that impacted the Raleigh-Durham industrial market during the first quarter.
Read our Industrial Five Fast Facts below or download a copy of the Q1 2022 MarketBeat.
FACT 1:
Leasing Activity Increases
Total new leasing activity reached 1.0 million square feet (msf) in Q1 and nearly 200,000 sf of renewals were signed. In total, 10 transactions 50,000+ sf were inked, including food and beverage manufacturer Pactiv for 60,000 sf at Eastgate 540.
FACT 2:
Largest Economic Development Announcement in N.C.
Auto manufacturer VinFast selected North Carolina for its first North America manufacturing plant, investing $6.5 billion and creating 13,000 jobs.
FACT 3:
Influx of New Construction
More than 456,000 sf of industrial product delivered in Q1, the highest total amount of new construction recorded in one quarter over the last year. Four warehouse buildings delivered 73.1% preleased and one flex building delivered 100% preleased.
FACT 4:
Vacancy Increases with New Space Options
With new warehouse projects delivering with vacant space, the warehouse vacancy rate increased 70 basis points (bps) quarter-over-quarter (QOQ) from 2.3% but remains tight at 3.0%. Flex vacancy increased 170 bps from 5.7% to 7.4% as multiple smaller spaces came online in Q1.
FACT 5:
Significant Rent Increases QOQOverall industrial rental rates increased 20.5% QOQ posting at $17.58 psf. Warehouse rates reached $8.27 psf and flex rates increased to $21.01 psf.
