Big news for the Triangle: Meta (formerly known as “Facebook”) is coming to Durham. Although the tech company declined to confirm that it’s headed to the Bull City, experts are already weighing in on how this could affect the commercial and residential real estate market.
“When tech giants like Meta, Apple and Google plant roots here, it creates a halo effect,” said Chela Tu, commercial broker at BOLD. “It signals to the rest of the tech world that this is a great place to grow a business.”
Tu said that she expects to see a cascade effect of smaller businesses leasing commercial space in the Triangle as companies head back to the office.
“I get phone calls all the time for flex and retail, but less so for office space,” she said.
Good news for companies on the hunt: It’s currently an office tenant’s market. During the pandemic, developers across the Triangle forged ahead with new office product despite painfully low demand, meaning that existing inventory is competitively priced as landlords were (and still are) willing to wiggle on lease terms.
“Lease rates on office space can vary by over $15/SF, or even more,” said Tu. “If you think about a price difference of over $12,500 per month on a 10,000 square foot office — it’s no small potatoes.”
As tech behemoths like Meta and Google move to the area, lured by the siren song of access to quality talent and an excellent quality of life, prices could start to increase.
“The Triangle market has been very strong for residential demand coming out of the pandemic,” said BOLD owner Chris Ehrenfeld. “With all of these major businesses coming to the Triangle, I expect demand for both residential and commercial real estate to continue to be strong in the market moving forward.”