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.
Q3 & Q4 of 2024 | Semiannual Market Report
Economic conditions within the Hillsborough Street Municipal Service District (MSD) remained steady throughout the second half of 2024. Retail growth within the corridor continues to grow at a fast rate, with 27.4k square feet in net absorption. The influx of new businesses offers a diverse range of entertainment options for Hillsborough Street visitors.
Retail rents exceed the citywide average, yet occupancy rates mirror those of Raleigh’s overall retail market. Numerous new businesses opened during Q3 & Q4, indicating opportunities for additional retail establishments. The office market has slightly slowed, with a negative net absorption and a higher vacancy rate than last period. The residential market is ever expanding, with the main highlight being Core Spaces’ The Hub on Campus, which will provide over 2000 beds for students
The corridor had over 821,000 individual visitors, up 2.17% from the first half of 2024. While the corridor is heavily student based, we see a lot of visitors come for the Food & Beverage (F&B) options we have available. F&B remained steady this half of the year, with our highest month being September with over $5 million in sales. Hillsborough Street has surpassed pre-COVID and the previous year’s numbers over the summer months and is looking to continue to grow in the F&B category with new businesses like Chex Grill & Wings, Lobera, Crumbl Cookie, and TsaoCha.
Overall, with new developments coming to the corridor and strong markets across all categories, Hillsborough Street is well positioned to have strong economic growth.