Q3 2021 MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: Downtown Raleigh continued to show signs of recovery in the third quarter with a growing storefront economy, expanding residential market, and a number of significant office announcements. Three major development projects broke ground this quarter as demand continues to drive growth across all downtown market segments.
+48
NEW STOREFRONT BUSINESSES OPENED OR EXPANDED Since Jan 2021
95.2%
The downtown residential market is at 95.2% occupancy and has 1,006 residential units under construction. This includes 442 units at Platform, downtown’s largest multifamily development to date, and 400H, a mixed-use development with 242 residential units. Both projects broke ground this quarter. An additional 4,480 residential units are currently planned or proposed in downtown.
RESIDENTIAL OCCUPANCY1
as of Q3
The Downtown Raleigh office market remains a national leader with continued Class A office deliveries in the third quarter and positive net absorption YTD. In early Q3, 421 N. Harrington delivered 225,000 SF of Class A office space. Late in the quarter, the First Citizens Bank Building renovation on Fayetteville Street was completed, which includes 32,000 SF of Class A office space. At the recently completed Tower Two @ Bloc[83] development, McAdams announced a major expansion of their space to 55,000 SF from an existing 10,000 SF in Bloc[83] which will serve as the firm’s new regional headquarters. Raleigh Crossing remains on track for a Q4 2021 delivery with anchor tenant Pendo moving in this December. The new 400H development, which broke DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
1,006
RESIDENTIAL UNITS
under construction CoStar (occupancy statistic does not include properties in lease-up phase) 1 1