2025 Triangle Market Overview and 2026 Forecast: OFFICE

February 2nd, 2026

Office Trends and Outlook

Each year, our industry experts evaluate and review the Raleigh, Durham, and greater Triangle commercial real estate market’s annual performance. Drawing on market data and firsthand experience from 2025, we share key trends and the activities we anticipate in 2026

In this segment, we interviewed Ryan Gaylord, CCIM, SIOR, Executive Vice President of Corporate Services Division to share his thoughts on office trends.

What was unique about 2025? And were there any milestones for this property type?

2025 marked a turning point for the office market, characterized by renewed decision-making and selective re-engagement by both occupiers and investors. After an extended period of hesitation, many groups that had been on the sidelines began executing long-deferred decisions, including renewals, relocations, and strategic consolidations. This shift helped reintroduce deal activity into the market and signaled improving confidence.

From an investment perspective, the year was notable for the repricing and trading of lower‑basis and distressed office assets, particularly at attractive price points. These opportunities drew well-capitalized buyers, including all-cash investors, family offices, and private equity firms, who were able to transact despite broader capital market constraints. This represented an important milestone in price discovery and asset repositioning within the sector.

Leasing activity increased. Several notable transactions were completed across the market, including new expansion deals and longer-term renewals and extensions. These underscored occupier confidence and commitment to our market.

Who were the big “winners” in this property type?

Well-located and highly-amenitized Class A office buildings clearly emerged as the winners. Assets that offered a strong location, modern design, and a compelling amenity package consistently outperformed the broader market.

North Hills saw significant leasing momentum, securing multiple users and successfully closing One North Hills Tower. The submarket’s walkability, retail and dining options, and overall live-work-play environment continued to resonate with tenants seeking to attract and retain talent.

The RTP submarket also recorded several notable wins. The under-renovation Imperial Tower (formerly the IQVIA building) secured a series of impressive full-floor and long-term commitments, including Aspida (90,000 SF), Victra (43,000 SF), and Robinson Bradshaw (31,000 SF).

Do you see any new emerging trends?

We are seeing an increase in deal sizes. While large-block users do not traditionally drive our market, seeing several larger tenants actively searching and executing leases is a healthy sign and speaks to growing confidence among occupiers, as well as to the Triangle’s location.

And while not a new trend, it is worth noting that spec suites continued to prove highly effective as a leasing strategy. Their impact was especially evident in projects such as North Hills and Raleigh Iron Works, where move-in-ready spaces accelerated decision-making and drove lease-ups.

What do you anticipate for 2026?

Leasing activity will continue to chip away at vacancy, particularly with Class A product. You will continue to see the “haves” and “have-nots”, with the highest-end product flourishing, and some of the B and C products still lagging and struggling.

Where do you see opportunities in your property type for Raleigh, Durham, and the greater Triangle?

With virtually no new office development on the horizon, we see continued opportunities to acquire well-located Class B assets and reposition them through targeted capital improvements and enhanced amenity offerings. These strategies are increasingly attractive as tenants remain selective but are willing to upgrade into higher-quality space when the value proposition is compelling.

Growth is expected to concentrate around established nodes with strong nearby amenities. North Hills should continue to see solid traction given its proven environment and select Downtown Raleigh buildings are also well-positioned to benefit from renewed tenant interest and urban revitalization.

In addition, we anticipate continued momentum in the RTP corridor, particularly within well-located office parks such as Imperial Center. Activity in this area picked up meaningfully over the past year, and we expect that trend to carry into 2026 as tenants prioritize quality, accessibility, and campus-style environments without the cost basis of new construction.

In our market, what challenges are there in this property type?

In the Triangle, we have a large concentration of tech workers. A trend of bringing those parties back to the office was in play, but a new disruptor, AI, is starting to take shape. While we are unsure of the long-term impact this might have, we have seen some recent pullbacks by companies and changes in their overall space needs, based on the potential for AI to affect their long-term headcount.

For existing landlords, near-term notes under low-interest-rate structures will come due, which will be a challenge for those owners. New loans will carry higher interest rates and require more capital from those owners, putting more stress on already challenged owners.

What factors are you seeing drive CRE decisions in this property type?

Proximity to amenities remains a key driver of decision-making. Both on-site amenities and nearby, walkable, or easily accessible amenities have become increasingly important as companies focus on bringing employees back to the office more consistently. Spaces that offer convenience, flexibility, and enhance employee experience are clearly winning favor.

Another major factor is construction costs. With construction expenses remaining elevated, the availability of tenant improvement dollars has become a critical differentiator among landlords. In many cases, owners who are willing and able to offer more robust TI packages are gaining a competitive advantage.

Notably, many tenants are willing to pay higher rental rates in exchange for high-quality space, strong amenity offerings, and meaningful landlord investment.

What do you love about working with this property type?

I’m encouraged by the momentum we’ve seen in the Triangle’s office market. There’s a renewed sense of energy as more organizations recognize the value of in-person collaboration, team building, and the workplace’s role in fostering culture. I’ve long been a proponent of that approach, and it’s been rewarding to see many companies come full circle and embrace those same benefits.

Overall, the combination of limited new development, improving occupancy trends, and continued interest from both existing and new users makes me very bullish on the future of working and doing business in the Triangle.

As you look ahead, planning your CRE goals for 2026, let our real estate advisors help guide you with insider market knowledge and experience.

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