Q1 2025 Greensboro/Winston-Salem Industrial Figures

Market Report Highlights: 

• After experiencing the first quarter of negative absorption in nearly five years at the end of 2024, the Greensboro/Winston-Salem market rebounded with 1.3 million sq. ft. of positive absorption in Q1 2025. 
• Construction deliveries totaled 1.8 million sq. ft. in Q1, with 48% of the space leased upon completion. The amount of industrial space underway declined to 609,000 sq. ft., the lowest level registered since Q4 2017. Sixty-nine percent of the space has already been leased. 
• Overall vacancy rose to8.0%%, up 70 basis points for the quarter and 130 bps year-over-year. While leasing activity was strong this quarter, the influx of new speculative space in the market outpaced the positive absorption. 
• The average asking rate declined moderately to $6.57 in Q1. After 19 consecutive quarters of positive rent growth, the increase in available Class B space has dampened growth. 
• The increase in capital markets activity to begin the year is setting up 2025 to be a stronger year for investment sales volume locally. Total sales volume reached $92.7 million in Q1.