In Raleigh-Durham, industrial vacancy varies by product type

– Although all 3 major industrial product types experienced the same vacancy of 1.3% in Q1 2022, things have changed greatly since then. Vacancy overall has gone up (5.4% in Q2 2024 for all product types), but it has gone up a lot more for distribution than for general warehouse or manufacturing.

– While vacancy has gone up 0.6% for manufacturing since Q1 2022, it has increased a staggering 8.7% for distribution and it has increased by 3.6% for general warehouse which is significant because over 50% of total inventory in Raleigh-Durham is general warehouse.

– The cause for these differences is possible changes in demand for distribution and the addition of new much needed supply for general warehouse. Although manufacturing does not make up a large percentage of industrial inventory in Raleigh-Durham what is in the market is in high demand.