Office demand stabilizes as supply pressures ease
Raleigh's office market continued to show gradual improvement as the overall availability rate declined to 21.0%, down 230 basis points (bps) year over year, marking one of the strongest annual improvements in recent quarters. While employers remain focused on optimizing space utilization and downsizing remains common at renewal, the market has recorded positive demand over the past year, averaging 800,000 square feet (sf) of quarterly leasing activity. Demand has been supported by the region's strong population growth and highly educated workforce. With new office deliveries declining sharply following a wave of construction in 2024, availability is expected to remain relatively stable as existing space is absorbed.