The combination of reduced or delayed demand for office space, new supply, an additional 3M SF of primarily speculative office under construction in the Raleigh/Durham markets, and a record high supply of available sublease space, all predict for increasing vacancy rates across the market in the coming 12 months. Despite the glut of supply, demand from life sciences, pharmaceuticals, universities, and government is strong enough to keep investors bullish long-term on the RDU markets. For now, landlords seem to be resisting any material reduction in face rates and instead are focusing on additional concessions in the form of free rent and increased tenant improvement allowances to compete and win new leases.