Office Market Stabilization

The North Carolina office market, especially in key hubs like Raleigh-Durham and Charlotte, is showing clear signs of stabilization in 2025 following years of pandemic-driven volatility.

While overall vacancy rates remain elevated, there’s growing evidence that tenants are more confidently making long-term commitments, and market uncertainty is giving way to new patterns of demand.

A central theme driving this new normal is the “flight to quality” a decisive shift in tenant preferences toward Class A office buildings and highly amenitized, modern spaces.

Why the Market is Stabilizing

After years of short-term renewals and hesitation, companies are once again entering longer lease terms, with many recommitting to physical office space to support in-person collaboration and business growth. In Raleigh-Durham, the construction pipeline for new offices has effectively dried up, tightening availability of prime assets and encouraging tenants to lock in quality locations before options become scarce. Meanwhile, demographic trends such as a rapidly growing population and a rising influx of new businesses continue to underpin demand in major metros. As firms increasingly view high-quality office environments as a tool for talent recruitment, retention, and company culture, the importance of asset quality has never been greater.

Related Trends Include:

• Phase 1 Environmental Site Assessment
• Property Condition Assessment
• Commercial Due Diligence
• Corporate Risk Management
• Environmental Compliance