Raleigh-Durham medical office remains in high demand

Traditional office average asking full service rates have decreased year over year for the first time in 10 years while the same statistic for medical office has increased year over year. Additionally, availability has increased dramatically in traditional office while it has decreased in medical office over the last few years.
  • Despite challenges in the traditional office market over the last few years, the medical office market has performed very well. In 2023, medical office availability was at a low 8.3%, and full-service asking rental rates rose 10.6% year over year to $32.04 per square foot.
     
  • The availability of traditional office space has more than doubled since 2020, and full-service asking rental rates have declined by nearly 2.7% year over year to $31.07. Medical office full-service asking rental rates are now higher than rental rates of the same kind for traditional office.
     
  • For the past 10 years, traditional office has maintained lower availability and higher full-service asking rental rates than medical office in Raleigh-Durham, however that trend may be coming to an end as the medical office market shows strong numbers while traditional office struggles.

February 9, 2024

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