Hillsborough Street - Market Report
This report includes trends in food and beverage sales, businesses openings and closings, commercial space inventory, business and development news and properties for sale or lease.
The goal of this report is to track the market of Raleigh’s Hillsborough Street Municipal Service District with data and metrics on a semiannual basis. Download the latest report below.
Q1 & Q2 of 2026 | Semiannual Market Report
Hillsborough Street remained active during the first half of 2026, supported by growing visitation. The corridor recorded 5.7 million visits from 1.2 million visitors, a 5.9% year-over-year increase. Visitor engagement remained strong, with an average dwell time of 97 minutes, while food and beverage sales were higher year over year in four of the first six months of 2026.
Real estate conditions were mixed but healthy. Retail remained tight, averaging 98.4% occupancy and asking rents of $32.12 per square foot. Office occupancy averaged 96.6%, with asking rents at $27.45 per square foot and net absorption averaging positive 570 square feet. Residential performance softened to 90.0% occupancy, with asking rents averaging $1,660 per unit and effective rents below the same period in 2025.
Development activity continues to shape the corridor’s outlook, with nearly 2.0 million square feet and 1,368 residential and hotel units listed as under construction or proposed. Growing visitor activity and continued development interest signal long-term confidence in Hillsborough Street. However, elevated residential vacancy and uneven quarterly leasing activity remain important indicators to monitor during the second half of 2026.