Demand for industrial space in the Raleigh-Durham market remains strong. Overall market vacancy rates were down from the previous quarter with the Flex market reporting vacancy rates at 8.93% and Warehouse at 3.16%. Net absorption remained positive with a total of 201,377 square feet absorbed at the end of the third quarter.
Construction in the Warehouse market jumped at the end of the third quarter with the 2.6M square foot Amazon Distribution Center breaking ground in the Southern Wake County submarket.
North Carolina’s August 2018 unemployment rate was reported at 3.9 percent, down 0.5 percentage points from last year. The largest year-over-year increases among major industries included Professional & Business Services along with Trade, Transportation & Utilities.
The U.S. unemployment rate was reported at 3.9%, the lowest rate in over 15 years. Jobs and import/export trades have recorded positive results across the country with no signs of slowing. Consumer confidence coupled with continued wage growth will prove to be especially positive for the Triangle’s industrial market.
2018 Q3 Raleigh Durham Industrial Report
Author: Kelsey Rogers
Date Published: 10/25/2018