Office vacancy in the 4th quarter was 14.5%, however office absorption proved steady during the 4th quarter, keeping with the trend of the past 2 years. While total absorption was below the 15 year market average, the 2.1 million square feet of new office space that is under construction across the Triangle was not taken into account. According to Triangle Business Journal’s SPACE report, this is “more space than the region has had in the pipeline in over a decade.” Almost half of the new inventory of office space coming online in 2017 and early 2018 has already been preleased.
Total warehouse absorption for 2016 was 1.2 million square feet. Industrial vacancy rate in the 4th quarter was 11.3%, an improvement from 11.6% in Q3. Similar to the office market, industrial construction is on the rise in the Triangle, as 1.55 million square feet of inventory was added in 2016.
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