Written by Amanda Jones Hoyle | TRIANGLE BUSINESS JOURNAL
The Triangle commercial real estate market finished out the first quarter 2014 in a much better position than it’s seen in the last five years, according to results from the first quarter 2014 SPACE survey report that will publish May 2 in Triangle Business Journal.
Overall vacancy for office buildings in Wake, Durham and Orange counties fell to 15.7 percent overall in the first quarter, the market’s lowest vacancy rate since late 2008, and down from 16.2 percent in the fourth quarter 2013.
The more highly coveted Class A office buildings dropped to a 10.3 percent vacancy rate from a rate of 11.9 percent in the fourth quarter.
The highlight of the quarter was the Lenovo technology company’s negotiated deal in March to lease both of the vacated Ericsson buildings on Development Drive in Research Triangle Park, effectively erasing 455,000 square feet of vacant office space in the region.
It’s the first time since the late 1990s that the RTP submarket has had a Class A vacancy rate in the single digits with a rate under 8 percent, says Ed Pulliam of CBRE-Raleigh and a member of the SPACE committee.
“These are really telling numbers for our office market,” he says.
However, the expiration of FHI’s 147,000-square-foot lease at Headquarters Park in Durham, after FHI relocated to a new building in downtown Durham, leveled the absorption numbers a bit in the first quarter.
Strong activity in the Triangle office market trickled into the flex, warehouse and retail leasing markets, which also posted positive data trends in the first quarter.