Why Companies Are Choosing The Triangle
My wife moved here three years ago and me following suit shortly one year after. Why? She got accepted into the #1 pharmacy school in the nation. (UNC Eshelman School of Pharmacy) The triangle of North Carolina (Raleigh, Durham, Chapel Hill) is known for its outstanding academics and therefore, good workers. Duke is ranked in the top ten, Chapel Hill following in the top thirty and NC State rounding out the top 100 (81). Not only do these colleges rank high in undergrad education but they also offer some of the best medical practices in the nation. Duke overall ranks number 17 and UNC is also in the rankings. With being such an educated market, it also means companies want to choose the triangle and the high IQ that is right in their backyard.
There is also an excitement around the triangle of cities being rated as top places to live. Raleigh/Durham ranks #13 on the best places to live thanks to affordability and the job market created around a very green and active community that continues to produce more outside activities every year. For example, hop on the newly completed American Tobacco Trail and go from Apex all the way, 22.6 miles later through Cary, finishing in downtown Durham for some great food at the many local restaurants. Another reason the triangle is so special is the access to having it both ways in terms of outdoor activities. Mountains and beach are both within distance of a days trip. A drive to the beach is an accessible 130 miles and to the mountains in just over a couple hours for hiking, skiing, and adventure. During these drives stop along the way to compete in a plethora of events from half ironman triathlons to 100 mile bike races through the Appalachian Mountains near Asheville. Or you could just stop for a casual beer from one of the many towns that have their own breweries or wineries! With so many things to do it is no doubt that appreciation will keep rising in this area.
Appreciation has grown as much as 9 percent in Raleigh for commercial space into the year of 2018. Reasoning behind that would be because vacancies are below 5 percent and the market has absorbed 1.3 million sq. feet of commercial space in 2018. Durham is falling behind those numbers at 18 percent for vacancies and absorption is in the negative. Housing is following the same trend line with home prices from 2016 to 2017 rising 7.5 percent in Raleigh and only a 2 month supply of housing. These numbers are above the national average and continue to rise month by month.
These spaces are being filled up with tech, healthcare, and financial companies. Including the possibility and excitement of both Apple and Amazon. Amazon has announced that the triangle made the short list of 20 out of hundreds. Meaning that with the vacancies so low in Raleigh that the Durham market could soon turn for the better and close the gap in vacancies and absorption. Both cities are located close to a thriving airport that is adding more flights monthly from domestic to now international to help ease the travelers wanting to go to Europe.
With markets tightening up and driving up prices, you need a strong commercial team behind you when finding your next space. With over 40 years experience on the Kima Commercial team. Whether it is finding a space to fill or a lot to build on. Our rounded team can help you from start to finish.
To learn more about what’s happening in the commercial real estate world in the Raleigh, Durham and North Carolina markets do not hesitate to contact us at Kima Commercial, LLC. Our team of Brokers, REALTORS® and staff are here to meet your real estate needs.