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LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
Q4 2019RALEIGH-DURHAM
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
Q4 2019
TOTAL OFFICE MARKET STATISTICSVacancy Rate Avg. SF Rental Rates GRS Net SF Absorption SF Inventory SF Under Construction
Q4 2019 6.6% $25.54 137,998 105,860,756 4,070,912
Q3 2019 6.6% $25.28 194,546 105,671,766 3,360,481
Q2 2019 6.6% $24.82 141,719 105,424,434 2,878,421
Q1 2019 6.6% $24.63 934,595 105,258,328 2,174,691
Q4 2018 6.6% $24.25 1,137,564 104,311,882 3,028,494
RALEIGH-DURHAM OFFICE
LARGEST DELIVERIESAddress Submarket/City SF Developer
4509 Creedmor Rd Raleigh 174,000 Crabtree Terrace Hldg
501 Fayetteville St Raleigh 149,842 501 Fayetteville Ownr
4736 Davis Dr Morrisville 40,000 Integrated DNA Tech
LARGEST UNDER CONSTRUCTIONAddress Submarket/City SF Delivery Date
555 S. Mangum St Durham 252,905 May 2020
5500 Arringdon Park Dr Durham 200,000 Jun 2020
100 Eastowne Dr Chapel Hill 150,000 Oct 2020
BRIAN FARMER, Senior Director
The Raleigh-Durham office market continues to be one of strongest performing markets on the East Coast. In new construction, the Raleigh market has 2.9 million SF underway with 40% preleased and Durham has 1.1 million SF with 70% preleased. The Universities in the Triangle area are all expanding as well as the hospitals, anchoring some of the newest developments. Trends we are seeing are more medical deals in the market and office tenants preferring private offices over open buildouts. We continue to see record investment sales in office buildings. The Citrix Headquarters in Downtown Raleigh (‘Warehouse District’) traded this quarter $414 per SF to a foreign investment group.
SIGNIFICANT BUILDING SALESAddress
CitySale Value
Type of SalePPSF
Cap RateSF
ClassBuyerSeller
120 S. West StDowntown Raleigh
$84,750,000Investment
$414.005.8%
204,8084-Star
Exan Capital, LLCJMC Holdings, LLC
2608 Erwin RdDurham
$34,284,246Investment
$342.00-
100,2534-Star
Starwood R.E. Income TrRam Realty
8041 Arco Corporate DrRaleigh
$25,500,000Investment
$200.007.2%
127,5224-Star
Southmark Capital LLCQualcomm Technologies
SIGNIFICANT LEASE DEALSAddress Submarket/City Square Feet Tenant
11000 Weston Pky Cary 101,960 Xerox
110 N. Concoran St Downtown Durham 58,602 WeWork
20 TW Alexander Dr RTP 37,442 -
UNDER CONSTRUCTION58 Buildings4,070,912
VACANCY7,032,495 SF6.6%
NET ABSORPTIONSF137,998
AVG. ASKING RATE PSF GROSS$25.54
DELIVERIES4 Buildings194,605
lee-associates.com LINKA BLOG BY
SUBMARKETS
RALEIGH-DURHAM
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234
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01 Downtown Raleigh
02 East Raleigh
03 West Raleigh
04 Northeast Wake Co.
05 US 1
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06 Six Forks/Falls of Neuse
07 Glenwood/Creedmoor
08 Cary
09 Southwest Wake Co.
10 Southeast Wake Co.
11 Johnston Co.
12 Franklin Co.
13 RTP/RDU
14 Research Triangle
15 South Durham
16 Downtown Durham
17 Orange Co.
18 Person Co.
19 Chatham Co.
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
OUR PROMISE TO YOU:▶ COMMITMENT
▶ QUANTIFIABLE RESULTS
▶ FOCUS ON OBJECTIVES
▶ SEASONED AGENTS
▶ INDUSTRY LEADING TECHNOLOGY
WHAT SETS LEE APARTSince 1979, Lee & Associates has been attracting the best and brightest in the industry who share an entrepreneurial spirit and commitment to delivering world class service through local market expertise and state-of-the-art resources. Now a powerful national network of top professionals, the company enjoys its hard-earned reputation as a TOP TIER NATIONAL COMMERCIAL REAL ESTATE SERVICES PROVIDER.
Our structure makes our culture unique and attracts like-minded entrepreneurs who leverage their expertise to spur innovation and help Lee & Associates sustain a competitive advantage. AS OWNERS OF THE COMPANY THIS SEPARATES THEM APART FROM THEIR COMPETITION and creates one common goal; to provide seamless, consistent execution and value driven market-to-market services to their clients.
“Our relationship with Lee & Associateshas been a long and fruitful one. They haverepeatedly demonstrated why they are expertsin their local market as well as providing thebest in class brokerage for our company.”
- Mark D. Payne, PanattoniDevelopment Company, Inc.
Increase in85%
Transaction Volumeover 5 years
$13+Transaction Volume
(2017)
1,000+PROFESSIONALS
And GrowingNationwide
SERVICES & SPECIALTIES
RETAIL The proliferation of online retailing has triggered a transformation in the retail sector that we see as an opportunity. Retailers have adapted their brick-and-mortar platforms to include omnichannel retailing and “click and bricks” integration along with revised site requirements. Our retail specialists are at the leading edge of this transformation and understand your unique challenges. Our specialists will help you find a tenant/buyer, or the right location that optimizes market positioning, revenue growth, stability, and profitability.
DATA CENTERS Information Technology has become a mission-critical hub for every aspect of our clients’ revenue generating business. The data center requires 100% uptime, and needs to be efficient, scalable, and secure. Lee & Associates’ Data Center Advisory is dedicated to achieving these goals, while saving our clients time and money on their data center deployments.
CORPORATE SOLUTIONS At Lee & Associates we recognize the special needs of companies located in multiple markets, and we have specialists dedicated to meeting the unique challenges. We become your outsourced real estate department, and provide specialized services critical to the successful management of a portfolio of operating locations. Whether it’s finding a new location, renewing a lease, or keeping track of all your current leases, we can help.
SELF STORAGE The storage industry, like other niche property types, has undergone a period of rapid change. While many facilities are still family owned, institutional players have increased their stakes in the industry, presenting new challenges to local investors. At Lee & Associates we have dedicated specialists to help you evaluate acquisition opportunities, or position your property for sale at terms that maximize your investment yield.
VALUATION & CONSULTING Our appraisers provide comprehensive, accurate appraisals across all commercial property types throughout the United States and Canada. They have unrestricted access to commercial property specialists in our offices nationwide. Lee brokers on the front line track every transaction in the marketplace and are the perfect source for the latest market intelligence that is vital to accurate property valuation. Our appraisers use the latest technology and analytical tools to complete each assignment, so that you can be confident in the result.
PROPERTY MANAGEMENT Our full-service property management services and daily oversight of commercial space are focused on reducing the efforts of our clients and tenants. We realize the importance of always being available in order to keep your property maintained at the highest level of service.
OFFICE An unprecedented demographic shift in the workforce hasbusiness owners rethinking workspace design to attract those that will help their businesses grow and thrive. The office has become a home away from home, and a place to create and collaborate. Lee office specialists have the experience and knowledge to help you navigate this changing world.
INDUSTRIAL Industrial users are faced with new challenges every day,including changing regulations, international competition, new technologies, and a shortage of efficient, cost-effective space. Our experienced industrial professionals are specialists in their local marketplaces who can help you secure a property that optimizes the operation of your business.
LAND Lee & Associates’ team of professionals includes some of NorthAmerica's top Land brokers. Their expertise in land entitlement and disposition provides our clients with an extensive knowledge of local market conditions, as well as development trends, and regulatory issues.
INVESTMENT The successful underwriting of any investment property is directly related to the depth of knowledge regarding occupier market dynamics, a core strength of every Lee office. Our brokers are local specialists who utilize their hands-on experience and comprehensive suite of analytical tools to help you acquire or dispose of commercial real estate assets when the time is right.
SUPPLY CHAIN & LOGISTICS The enormous growth of big-box andonline retailing has been the catalyst for rapid logistics industry growth. Advances in materials handling technology and the construction of state-of-the-art facilities near intermodal hubs, has changed the way goods reach the consumer. Our dedicated logistics/supply chain specialists across the country speak your language and work together to get what you need when you need it.
MULTIFAMILY The multifamily investment market has experienced explosive growth in recent years. Demographic shifts and the re-urbanization and gentrification of neighborhoods across the country have put multifamily investment front and center. Safe, stable, more resilient to real estate cycles, and with their diversified tenant base, these factors make them a favorite among both institutional and private investors of all sizes. Lee & Associates has seasoned multifamily team, experts in their respective markets, who have the experience and track record to help you sort through their unique complexities.
SENIOR HOUSING & HEALTHCARE With the aging of the BabyBoomer generation, the largest in human history, comes a complex set of challenges for the senior housing and healthcare industry. That also means tremendous opportunity for investors and operators in the sector. Our Senior Housing/Healthcare specialists are trained and experienced in the sale and lease of specialized health-related facilities, including assisted living, skilled nursing and medical office properties.
Engaging the services of a qualified real estate professional is critical to the completion of a successful transaction, whether the transaction involves the acquisition, disposition, management, appraisal or leasing of commercial property. You can count on your local Lee & Associates professional to have the experience, knowledge and resources needed to meet the unique challenges of your transaction, and ensure that you
make the most informed decision possible.
LEE & ASSOCIATES RALEIGH-DURHAM | 5430 WADE PARK AVENUE, SUITE 300 | RALEIGH, NC 27607 | LEERALEIGH.COM
Moss Withers, SIOR, MBAPresident & Principal
Karah JenningsPrincipal
Jeremy LaughtonSenior Vice President
Property Management
Hayden ParkerDirector of
Property Management
Beth AubreyController
Property Mangement
Scott HadleySenior Director
Aldene “Dee” Creech Osborne, SIORSenior Director
Jake Plotkin, CCIMSenior Director
Will JudyBroker
Hunter Stewart, MBABroker
Russell Stewart, J.D.Broker
James Bailey, J.D.Broker
Brian FarmerSenior Director
H.E. “Tony” Withers, IIIVP of Business Development
Property Managment
Marlene Spritzer, J.D., CCIMSenior Director
Susan FultonDirector of Marketing
Jane JonesMarketing Coordinator
Michelle RhinoDirector of Operations
& Finance
Kate DuffyMarketing Associate
Ryan LawlerBroker
LEE & ASSOCIATES | RALEIGH-DURHAM
The information and details contained herein have been obtained from third-party sources believed to be reliable, however, Lee & Associates has not independently verified its accuracy. Lee & Associates makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information and details provided herein, including but not limited to, the implied warranty of suitability and fitness for a particular purpose. Interested parties should perform their own due diligence regarding the accuracy of the information. The information provided herein, including any sale or lease terms, is being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice. Third-party data sources: CoStar Group, Inc. and Lee Proprietary Data. © Copyright 2019 Lee & Associates all rights reserved.
JAMES BAILEYBROKER
(336) [email protected]
BRIAN FARMERSENIOR DIRECTOR
(919) [email protected]
SCOTT HADLEYSENIOR DIRECTOR
(919) [email protected]
RYAN LAWLERBROKER
(949) [email protected]
KARAH JENNINGS MCCONNELLPRINCIPAL
(919) [email protected]
MARLENE SPRITZER, JD, CCIMSENIOR DIRECTOR
(919) [email protected]
OFFICE TEAM
WILL JUDYBROKER
(919) [email protected]
HUNTER STEWART, MBABROKER
(919) [email protected]
RETAIL TEAM
SCOTT HADLEYSENIOR DIRECTOR
(919) [email protected]
DEE CREECH OSBORNE, SIORBROKER
(919) [email protected]
WILL JUDYBROKER
(919) [email protected]
RYAN LAWLERBROKER
(949) [email protected]
JAKE PLOTKIN, CCIMSENIOR DIRECTOR
(919) [email protected]
RUSSELL STEWART, JDBROKER
(919) [email protected]
INDUSTRIAL/FLEX TEAM
SCOTT HADLEYSENIOR DIRECTOR
(919) [email protected]
KARAH JENNINGS MCCONNELLPRINCIPAL
(919) [email protected]
RUSSELL STEWART, JDBROKER
(919) [email protected]
MOSS WITHERS, SIOR, MBAPRESIDENT & PRINCIPAL
(919) [email protected]
LAND TEAM
BRIAN FARMERSENIOR DIRECTOR
(919) [email protected]
JAKE PLOTKIN, CCIMSENIOR DIRECTOR
(919) [email protected]
INVESTMENT TEAM
MOSS WITHERS, SIOR, MBAPRESIDENT & PRINCIPAL
(919) [email protected]
BRIAN FARMERSENIOR DIRECTOR
(919) [email protected]
KARAH JENNINGS MCCONNELLPRINCIPAL
(919) [email protected]
HEALTHCARE TEAM
MARLENE SPRITZER, JD, CCIMSENIOR DIRECTOR
(919) [email protected]
JAMES BAILEYBROKER
(336) [email protected]
MARLENE SPRITZER, JD, CCIMSENIOR DIRECTOR
(919) [email protected]
TENANT REP TEAM
MARLENE SPRITZER, JD, CCIMSENIOR DIRECTOR
(919) [email protected]