Triangle’s High-Occupancy Office Towers Still Command High Prices

Despite a struggling office market and rising vacancies, Raleigh-Durham’s high-occupancy office towers continue to sell for massive sums—some reaching well over $100 million. While older, suburban, and low-occupancy buildings suffer, Class A office towers remain in demand due to their prime locations, modern amenities, and flight-to-quality trends. One standout deal: Highwoods Properties’ recent $138 million acquisition of the Advance Auto Parts tower in North Hills. With office vacancies in the Triangle hitting 16.8% in late 2024, some experts predict that new Class A office space will hit 90% occupancy by 2026—paving the way for a potential rebound in overall office prices. But with no new towers under construction, demand could soon outstrip supply.

Key Takeaways:

• High-Occupancy Towers Stay Strong – Office towers with high tenancy rates continue to sell for big numbers, often exceeding $100 million.
• Overall Market Challenges – The Triangle’s office vacancy rate hit 16.8% in Q4 2024, showing continued weakness in the sector.
• Class A Demand Remains High – Premium office space with modern amenities and walkable locations is still a top choice for tenants.
• Notable Recent Sales:
  • Bloc83 – Sold for $330 million in 2021 to City Office REIT.
  • Advance Auto Parts Tower – Purchased in 2025 for $138 million by Highwoods Properties.
• Future Outlook – Class A office space may hit 90% occupancy by 2026, with no new office towers under construction for at least three more years.
• Potential Office Market Recovery – If vacancies tighten and demand holds, office prices for all classes may rise back to pre-pandemic levels.

Will this elite section of the office market continue to defy the odds, or will shifting economic conditions change the game yet again? Stay tuned!
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