Raleigh-Durham Industrial & Warehouse Market Report | Q2 2026
Key Takeaways
- Raleigh-Durham industrial vacancy rose to 9.4% in Q2 2026, up 70 basis points on the quarter and 190 basis points on the year, per Cushman & Wakefield, as more than 1.5 million SF of new space delivered.
- Overall asking rents held at $11.00/SF/yr NNN, flat on the quarter but down 10.3% on the year, partly because discounted second-generation space returned to the market.
- Leasing reached 2.9 million SF in the first half, up 54.3% year over year. Net absorption was 512,850 SF in Q2, led by Eaton’s 550,000 SF move-in in Franklin County.
- 5.7 million SF is under construction and only 23.2% is preleased, with 3.4 million SF due by year-end. C&W expects vacancy to keep rising.
Browse warehouse space for rent in Raleigh-Durham
9.4%
Overall Vacancy (Q2 2026)
$11.00
Avg. Asking Rent ($/SF/yr NNN)
512,850
SF Net Absorption (Q2 2026)
5.7M
SF Under Construction
Raleigh-Durham is working through a supply wave. Demand held up in Q2 2026, with strong leasing, bigger deals and more than 512,000 SF of occupancy growth. Still, more than 1.5 million SF of new space delivered, nearly half of it vacant, so vacancy rose to 9.4%, above the 6.9% U.S. rate. The pressure is concentrated in speculative warehouse space, especially in Eastern Wake County. Manufacturing space remains tight.
Figures are from Cushman & Wakefield’s Q2 2026 Raleigh-Durham Industrial MarketBeat unless noted. Prior-quarter and year-ago comparisons use the figures as restated in C&W’s Q2 2026 U.S. Industrial MarketBeat tables. Rents are net asking, quoted in $/SF/yr.
Market Snapshot: Q2 2026
| Metric | Q2 2026 | Q1 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy | 9.4% | 8.7% | ↑190 bps YoY (7.5% in Q2 2025) |
| Overall asking rent ($/SF/yr NNN) | $11.00 | $11.00 | −10.3% YoY (from $12.26) |
| Warehouse/distribution asking rent ($/SF/yr) | $10.29 | n/a | +0.8% QoQ; W/D vacancy 10.9% |
| Flex asking rent ($/SF/yr) | $16.11 | n/a | +1.6% QoQ; flex vacancy 8.8% |
| Net absorption | 512,850 SF | 45,440 SF | 558,290 SF year to date |
| New leasing activity | 1.7M+ SF | n/a | 2.9M SF year to date, +54.3% YoY |
| Deliveries | 1.5M+ SF | n/a | 2.7M SF year to date |
| Under construction | 5.7M SF | n/a | 23.2% preleased; 3.4M SF due by year-end |
| Inventory | 121.0M SF | n/a | Core submarkets 78.6M SF; outlying counties 42.3M SF |
Source: Cushman & Wakefield, Raleigh-Durham Industrial MarketBeat Q2 2026. Q1 2026 and Q2 2025 values as restated in C&W’s U.S. Industrial MarketBeat Q2 2026 metro tables; C&W’s Q1 report originally showed 9.0% vacancy and $11.08/SF. n/a = not restated in the Q2 reports.
Rent Trends: Flat Quarter, Down 10.3% on the Year
Overall asking rents held at $11.00/SF/yr NNN in Q2 2026, unchanged from Q1 as restated and down 10.3% from $12.26 a year earlier. C&W attributes part of the annual decline to second-generation space returning at discounted rates, including Carrier Corporation’s former facility at 1711 Corporation Pkwy, marketed at $10.00/SF.
By product type, warehouse/distribution rents rose 0.8% on the quarter to $10.29/SF/yr and flex rents rose 1.6% to $16.11/SF/yr, both lifted by new buildings asking higher rates. Space under construction averages $11.73/SF, 6.6% above the current market average. The U.S. overall average in the same C&W release is $10.32/SF/yr NNN.
For Tenants
Leverage has shifted toward tenants in warehouse space. Warehouse/distribution vacancy is 10.9%, nearly half of Q2’s new space was available at completion, and only 23.2% of the pipeline is preleased. Second-generation buildings are being marketed at a discount, and new buildings ask more. Manufacturing space is the exception, at 4.1% vacancy. Search Raleigh-Durham warehouse listings on WareCRE.
Construction Pipeline: 5.7M SF Underway, 23% Preleased
Raleigh-Durham had 5.7 million SF under construction at the end of Q2 2026, and C&W expects 3.4 million SF of it to deliver before year-end. Only 23.2% is preleased. More than 1.5 million SF delivered in Q2, with 47.9% of it, or 720,000 SF, available at completion, and year-to-date deliveries reached 2.7 million SF.
The largest pipelines are in Chatham County (1.2 million SF), Southern Wake County (1.2 million SF) and Eastern Wake County (992,838 SF). C&W notes that developers remain drawn to the region’s demographics, transportation infrastructure and long-term growth, but that vacancy may keep rising as speculative projects complete through the rest of 2026.
For Operators
Expect more competition for tenants through year-end. With 3.4 million SF due and less than a quarter of it preleased, new buildings will compete on terms. Demand is concentrated in modern space, with 67.3% of first-half leases in buildings built in 2020 or later. Owners of older product face discounted second-generation competition. Manufacturing assets, at 4.1% vacancy, are in a stronger position.
Submarket Breakdown: Outlying Counties at 3.4% Vacancy, Core at 12.7%
C&W splits Raleigh-Durham into 15 core submarkets (12.7% vacancy) and five outlying counties (3.4% vacancy). The four below are the largest or most active by Q2 2026 absorption, deliveries and construction.
Eastern Wake County
The largest submarket at 18.3 million SF, covering the eastern growth corridor around Knightdale, Wendell and Zebulon. It took 756,330 SF of Q2 deliveries, 50.3% of the metro total, and posted the largest vacancy increase, up 550 bps on the quarter to 10.5%. Carrier’s exit from 1711 Corporation Pkwy added more than 165,000 SF of vacancy. American Tire leased 139,230 SF at Beacon Commerce Park. C&W still calls the submarket highly desirable for its location and ability to serve large users. 992,838 SF is under construction.
RTP / I-40 Corridor
Research Triangle Park and the surrounding I-40 corridor, 17.2 million SF, anchored by life sciences, advanced manufacturing and flex users. Vacancy is 11.8%. PowerSecure leased 187,500 SF at Patriot Park 3. Overall asking rents average $13.86/SF/yr, among the highest in the metro, with flex space asking $19.97/SF/yr. 651,148 SF is under construction.
Southern Wake County
A 4.8 million SF submarket where speculative building has pushed vacancy to 22.9%, one of the highest rates in the metro. It delivered 613,353 SF this year and has another 1.2 million SF under construction. Overall asking rents average $11.21/SF/yr.
Franklin County
An outlying county north of Raleigh with 5.9 million SF. Eaton Corporation’s 550,000 SF occupancy, the largest in the metro this year, gave Franklin County more absorption than all 15 core submarkets combined. Vacancy is 8.6% and rents average $10.02/SF/yr.
| Submarket | Vacancy | Overall Asking Rent ($/SF/yr) | YTD Net Absorption (SF) | Under Construction (SF) |
|---|---|---|---|---|
| Eastern Wake County | 10.5% | $10.85 | -79,567 | 992,838 |
| RTP/I-40 Corridor | 11.8% | $13.86 | 18,115 | 651,148 |
| Johnston County | 9.7% | $10.29 | -43,157 | 439,680 |
| US 1/Capital Blvd | 10.3% | $13.14 | 31,066 | 0 |
| Southern Wake County | 22.9% | $11.21 | -19,905 | 1,159,603 |
| Chapel Hill (Orange County) | 15.9% | $8.54 | 224,500 | 244,400 |
| Cary | 1.6% | $15.06 | 4,198 | 0 |
| Core markets total | 12.7% | $11.46 | -85,702 | 4,230,439 |
| Franklin County | 8.6% | $10.02 | 550,992 | 0 |
| Chatham County | 7.7% | $8.53 | 8,000 | 1,179,304 |
| Lee County | 3.0% | $6.90 | 85,000 | 250,000 |
| Outlying counties total | 3.4% | $8.00 | 643,992 | 1,429,304 |
| Raleigh-Durham total | 9.4% | $11.00 | 558,290 | 5,659,743 |
Source: Cushman & Wakefield, Raleigh-Durham Industrial MarketBeat Q2 2026, market statistics table (selected submarkets; totals include all). Vacancy is overall vacancy; rents are overall weighted net asking, $/SF/yr.
Co-Warehousing & Flexible Warehouse Space in Raleigh-Durham
The Triangle has one of the most active startup and small-business economies in the Southeast, and flex space is holding up. C&W puts flex vacancy at 8.8%, unchanged on the quarter and 40 bps better on the year, which it reads as stable demand for smaller-format industrial space. Flex rents average $16.11/SF/yr, and Cary, one of the tightest core submarkets at 1.6% vacancy, asks $15.06/SF/yr.
Raleigh-Durham’s flexible-space market leans on life sciences and biotech companies that need lab-adjacent warehouse and cold storage, and on technology hardware firms in the RTP corridor. E-commerce sellers, construction trades and food and beverage distributors serving the growing Triangle account for much of the rest.
Browse available co-warehousing and small-bay warehouse listings on WareCRE’s Raleigh marketplace.
Looking for warehouse space in Raleigh-Durham?
Key Trends to Watch
1. New Supply Is Outrunning Absorption
Year-to-date deliveries of 2.7 million SF compare with 558,290 SF of net absorption. C&W says vacant deliveries outpaced occupancy gains in Q2, and warehouse/distribution vacancy rose 110 bps on the quarter to 10.9% because that is where speculative building is concentrated. With 3.4 million SF more due by year-end and 23.2% preleased, C&W expects vacancy to keep rising as those projects complete.
2. Leasing Is Up 54% on the Year, and Deals Are Getting Bigger
First-half leasing passed 2.9 million SF, up 54.3% year over year. Six Q2 deals exceeded 100,000 SF, including Millennium Print Group’s 330,000 SF lease at Buckhorn II Industrial Park, and the average Q2 lease reached 50,230 SF, 17.1% above the five-year average. Tenants favored modern buildings, and 66.5% of leasing was in the core submarkets.
3. The Outlying Counties Are Tighter Than the Core
Vacancy in the five outlying counties is 3.4%, against 12.7% in the core submarkets, and the outlying counties’ 643,992 SF of net absorption more than offsets a loss of 85,702 SF in the core. Manufacturing space is the tightest product type at 4.1% vacancy. The regional economy supports demand, with unemployment at 3.3% against a 4.2% U.S. rate and 16,700 jobs added over the year. For more on how building type and size shape vacancy, see Small-Bay vs. Big-Box: What the Vacancy Gap Means in 2026 and Industrial Real Estate Trends & Outlook 2026.
Outlook: What to Watch in Q4 2026
C&W’s Q3 2026 MarketBeats are due in mid-October, with the year-end release to follow. Together they will show how much of the pipeline Raleigh-Durham can absorb.
Peak vacancy. C&W projects vacancy to keep rising as speculative projects deliver without preleasing. Watch whether the Q3 rate passes 10.0%, and how much of the 3.4 million SF due by year-end arrives vacant.
Leasing conversion. C&W expects demand to stay strong, especially for newer, well-located buildings. Watch whether first-half leasing of 2.9 million SF starts to show up as absorption.
Rent direction. C&W expects asking rents to rise as new buildings enter the market above the current average. Discounted second-generation space will pull the other way.
Find warehouse space in Raleigh-Durham
Browse co-warehousing, small-bay, and distribution listings across the Triangle.
Data sources: Cushman & Wakefield Raleigh-Durham Industrial MarketBeat Q2 2026 (headline, submarket and product-type figures; rents net asking, $/SF/yr); Cushman & Wakefield Raleigh-Durham Industrial MarketBeat Q1 2026 (as-published Q1 vacancy and rent); Cushman & Wakefield U.S. Industrial MarketBeat Q2 2026 (restated Q1 2026 and Q2 2025 figures and U.S. averages; rents NNN). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.
Related Resources
Frequently Asked Questions
What is the current industrial vacancy rate in Raleigh-Durham?
Raleigh-Durham industrial vacancy was 9.4% in Q2 2026, according to Cushman & Wakefield, up 70 basis points from Q1 and 190 basis points from a year earlier, and above the 6.9% U.S. rate. Warehouse/distribution vacancy was 10.9%, flex 8.8% and manufacturing 4.1%. The core submarkets averaged 12.7% and the outlying counties 3.4%.
How much does warehouse space cost in Raleigh-Durham?
The overall average asking rent was $11.00/SF/yr NNN in Q2 2026, flat on the quarter and down 10.3% year over year. Warehouse/distribution space averaged $10.29/SF/yr and flex space $16.11/SF/yr. Space under construction is asking an average of $11.73/SF. By submarket, overall rents range from $6.50/SF/yr in Downtown Raleigh to $15.06/SF/yr in Cary.
Which Raleigh-Durham submarket is best for warehouse space?
It depends on the requirement. Eastern Wake County, the largest submarket, has the most new logistics space and 10.5% vacancy, which gives tenants options. The RTP/I-40 Corridor suits life sciences, flex and R&D users at $13.86/SF/yr. Cary is one of the tightest core submarkets at 1.6% vacancy. Outlying counties such as Franklin and Lee are tighter and cheaper, at 8.6% and 3.0% vacancy.
How much industrial space is under construction in Raleigh-Durham?
5.7 million SF was under construction at the end of Q2 2026, and only 23.2% was preleased. C&W expects 3.4 million SF to deliver before year-end. Year-to-date deliveries reached 2.7 million SF, and 47.9% of Q2’s new space was available at completion.
