CARY, NC, January 31, 2010
/24-7PressRelease/ -- The report is compiled of data from the fourth quarter of 2009 and indicates that the commercial real estate market in the Triangle has stabilized.
"The window of opportunity for tenants to lock in lower lease costs is wide open, but it won't stay this way forever," said Ed Hoel, Managing Principal of CresaPartners Raleigh. His firm's latest market review highlights a trend predicted to continue through 2010: landlords giving significant discounts (like free rent), higher tenant improvement allowances, short-term renewals and other concessions.
Class A office rents are down at $23.45/SF, while Class B office rents are up at $18.32/SF from $17.79/SF in the second quarter. It is likely that options for large blocks of Class A office space will be rare further into 2010 since construction is at a standstill.
Unemployment and Vacancy Rates Decline Together
The Triangle's unemployment rate remained at 8.4% during the fourth quarter, down from a mid-year 9.1%. 2009 ended with an office vacancy rate of 15.7% and is expected to trend down slowly.
Major Transactions in the Raleigh-Durham 2009 Q4
EMC Corporation - 450,000 SF - Industrial Purchase
GlaxoSmithKline - 170,000 SF - Industrial Lease Renewal
GSA/Social Security Administration - 72,081 SF - Office Lease
Triangle Tenants Should Analyze Leases
The Tenants Guide for the Triangle notes that this is the prime time for tenants to take full advantage of the market dynamics by analyzing their leases and evaluating opportunities for restructuring to reduce their occupancy costs.
About CresaPartners
CresaPartners is an international corporate real estate advisory firm that exclusively represents tenants and specializes in the delivery of fully integrated real estate services, including: Transaction Management, Project Management, Relocation Planning and Management, Strategic Planning, Workforce and Location Planning, Subleases and Dispositions, Lease Administration, Capital Markets, Sustainability, Supply Chain and Facilities Management. With more than 50 offices, CresaPartners is the largest tenant representation firm in North America. Internationally, CresaPartners covers more than 125 locations in 35 countries. For more information visit http://www.cresapartners.com.
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