Q3 2021

LOCAL EXPERTISE. INTERNATIONAL REACH. WORLD CLASS.

RETAIL MARKET OVERVIEWCOLE PENNELL, Broker

Retail continues to be a “Landlord’s market” with low vacancy rates all around. Despite shutdowns, most retailers have continued to stay strong and adapt. More urban markets like downtown Raleigh and downtown Cary are back on the upswing with retailers reopening their doors and vacant spaces being leased. Also, less concessions are being given to tenants than were given throughout 2020 as people regain confidence in the strong retail market. Several larger urban and suburban developments in the Durham market should increase the total SF available for expanding retailers.

RALEIGH, NC

MARKET INDICATORS Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020

▲ 12 Mo. Net Absorption SF 406,053 142,705 12,689 (243,990) 327,223

◀ ► Vacancy Rate 3.0% 3.0% 3.0% 3.0% 3.0%

▲ Avg NNN Asking Rate PSF $21.83 $21.73 $21.22 $21.15 $20.82

▼ SF Under Construction 579,983 717,628 758,407 725,729 562,201

▲ Inventory SF 74,832,093 74,666,291 74,543,570 74,467,095 74,322,047

NET ABSORPTION, NET DELIVERIES, & VACANCY UNDER CONSTRUCTION

TOP LEASE TRANSACTIONS BY SF SIZE LANDLORD TENANT TENANT INDUSTRY

1521-1591 Beaver Creek CommonsApex, NC 23,000 SF Collett Capital Ross Dress For Less Retailer

1303-1339 5th AvenueGarner, NC 14,000 SF The Centre

Construction Group Undisclosed Undisclosed

280 Towerview CourtCary, NC 12,650 SF The Center For

Leadership Studies Bucked Up Retailer

TOP SALE TRANSACTIONS BY SF SIZE SALE PRICE BUYER / SELLER TENANCY TYPE

7330 Old Wake Forest RoadRaleigh, NC 154,004 SF $5,230,000

$33.93 PSFDavid Tsui

ESL Investments Single-Tenant

11051 Ligon Mill RoadWake Forest, NC 104,000 SF $12,690,000

$122.05 PSFStiles Retail Group

Wegmans Food Markets Single-Tenant

2420-2464 SW Cary PkyCity, NC 80,061 SF $10,200,000

$127.40 PSFOhio-S.M. Venture LP

SCP Parkway Pointe LLC Multi-Tenant

The information and details contained herein have been obtained from third-party sources believed to be reliable, however, Lee & Associates has not independently verified its accuracy. Lee & Associates makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information and details provided herein, including but not limited to, the implied warranty of suitability and fitness for a particular purpose. Interested parties should perform their own due diligence regarding the accuracy of the information.The information provided herein, including any sale or lease terms, is being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice. Third-party data sources: CoStar Group, Inc., The Economist, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Congressional Budget Office, European Central Bank, GlobeSt.com, CoStar Property, and Lee & Associates Proprietary Data. ©© Copyright 2021 Lee & Associates all rights reserved. Third-party Image sources: sorbis/shutterstock.com, shutterstock.com, pixabay.com, istock.com