In today’s real estate update, we’re looking at a significant office building sale in West Raleigh. The property located at 5565 Centerview Drive has sold for just over $5.7 million, which is a sharp decline, more than 50% lower than its price in 2020. The building, which spans 75,276 square feet, has seen its occupancy drop from 73% to a troubling 36%. According to the Triangle Business Journal, this decrease in leasing may be driving the price down.

The new owner, New York-based Pergament Properties, acquired the building from Dallas's TriGate Capital, which had purchased it for nearly $11 million as part of a larger deal. Despite renovations made by TriGate, including updates to the lobby and restrooms, the building's declining occupancy reflects broader challenges in the Triangle market. The vacancy rate for West Raleigh stood at 17.78% in late 2024, and downtown Raleigh wasn't much better at 15%.

Savills reports that while Class A office rents are increasing, there is a marked preference for high-quality, amenity-rich spaces. The ongoing shift suggests companies are consolidating into better locations, focusing on quality amid an evolving landscape.
Link to Article