Raleigh Office Vacancy Dips to 6.75% on Tech Demand Surge

Raleigh's office market is showing signs of recovery, with vacancy dropping to 6.75% in recent TenantBase data, while neighboring Durham ticked up slightly to 8.0%. This contrasts with broader Triangle figures, where Cushman & Wakefield reported a Q4 2025 overall vacancy of 22.9%, up 20 basis points quarter-over-quarter but stabilizing after six quarters in a narrow range. Downtown Raleigh's Class A vacancy remains tight at 13.7%, supported by positive net absorption of 43,785 square feet in Q3 2025, contributing to a year-to-date total exceeding 132,000 square feet. Average asking rents held steady at $39.72 per square foot, reflecting sustained demand.

The rebound aligns with positive net absorption trends: Lee & Associates noted Raleigh absorbing 582,142 square feet in Q1 2025, reversing a Q4 2024 contraction of 87,441 square feet. Over the past 12 months, CoStar Group data shows Raleigh with 574,000 square feet of positive absorption, offsetting Durham's 480,000 square feet negative, for a blended market near equilibrium at 10.7% vacancy—well below the national 14.1% average. Submarkets like Downtown Durham improved to 16.7% vacancy in Q4 2025, gaining 31,000 square feet, while the RTP/I-40 Corridor lagged at 30.7%.

Tech influx and hybrid work models drive the shift, with tenants favoring high-quality spaces amid no new construction. Cushman & Wakefield's Q3 2025 report highlighted Class A vacancy falling 50 basis points year-over-year to 25.7%, with Downtown Raleigh and Six Forks submarkets dropping to 21.4% and 20.5%, respectively. A Triangle Business Journal update pegged Q4 vacancy at 16.4%, down from 16.7% a year prior, underscoring momentum into 2026.