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Flex retail leasing picks up in the Triangle as demand shifts
Vacancy for buildings under 10,000 square feet was about 1.6% in the second quarter, down from 2.9% for larger buildings, Colliers data cited by Bisnow shows.
Flex retail spaces are seeing increasing leasing activity across North Carolina’s Triangle region as overall retail demand has grown after years of stagnation, developers told Bisnow.
Bisnow described flex retail properties as adaptable sites that combine storefront or retail space with industrial components such as backroom storage, warehousing, or production space. Some tenants also add entertainment or activity offerings, including indoor pickleball courts and go-kart tracks, with developers saying consumers want more distinctive retail experiences.
Bisnow added that the concept is attracting tenants that want industrial-type space with a retail-facing angle, sometimes pairing a retail tenant and an industrial tenant in the same building. Developers highlighted how small-bay flex buildings can support industrial needs with high ceilings and ample floor area, and they said smaller neighborhood-focused retail is especially competitive in Raleigh.
According to a Colliers report cited by Bisnow, vacancy for flex or similar smaller buildings under 10,000 square feet stood at about 1.6% in the second quarter, compared with 2.9% for larger buildings. Bisnow also noted that some neighborhood service businesses like banks, dental offices, and daycare centers are being adapted from obsolete single-story office properties.