Triangle Commercial Bits and Pieces…
RTP Getting New Mixed Use Development
The largest research park in America is changing things. Wait, that’s not right, America is changing things for the largest research park. A new concept mixed use development is hitting the park! Durham, NC is welcoming Beacon Properties Group and the mixed use development that will lay right along the busy 15-501 corridor looking to capitalize on new restaurants, variety of office space, hotel(s), and apartments. It will be a walkable mixed us district and the first of it’s kind in the area! Multifamily continues to expand in the Triangle market. Just this week there are several on planning board agendas throughout the region including one on Rogers Branch in Wake Forest, NC.
North Carolina continues to grow quickly and remains on the top or near the top of many lists of best places to live and work! This is a reflection of that very thing.
Featuring 57,000 square feet of retail and 25,200 square feet of office along with 17,000 square feet for restaurants and 300 apartment units, the project name, Oakridge will have major impact in our market. The first of several? We will see.
DOWNTOWN Raleigh By the Numbers….
While residential builders are helping change the face of the market near downtown Raleigh, it is the commercial impact that truly will drive the traffic to these homes! What came first? Chicken? Egg? Smoke? Fire? Residential? Commercial? Twenty nineteen has been a good year for Raleigh. Hemp stores, cocktail lounges, new restaurants, new office space, etc….. Here it is by the numbers according to the TBJ.
37 – Number of businesses closed since Jan 2018.
64 – Number of new businesses since Jan 2018.
15 – Number of storefronts closed in 2019.
20 – Number of new storefronts in 2019. (We call that growth)
Triangle Rental Rates Up
The second quarter showed a boost in Triangle area office rental rates. With the expansion of local businesses and the growth of outside companies coming in to the market, it appears that vacancy rates continue their decline. Average Class A office rental rates climbed in the second quarter to $29 per square foot. That is nearly a 40% increase from earlier in 2019. Rates were holding steady over the previous year as well. Again, we call this growth. The economy continues to flourish! Class A rates exceeded $32 per square foot in submarkets like downtown Durham, Six Forks/Falls of Neuse, and Raleigh. Where would you expect the first over $40 per square foot to be recorded?? Yep, you guessed it, Kane Realty announced earlier that Tower IV at North Hills hit $41.50.
Trending up. What goes up must come down…right? Not in the near future experts say. There are several proposed projects in downtown (remember the smoke versus fire thing earlier in this post?) that are likely to ask similar rental rates.
By the Numbers:
7.5% = Class A vacancy rate across the region
3.1% = Class A vacancy rate in downtown Raleigh
Massive Development Project – Johnston County
Whew, this one took some time. After a year plus of preparation, planning, designing, talking, drinking coffee, more talking, more planning…you get the idea…a new 470 plus acre mixed-use development in Johnston County has officially begun construction.
A 2.8 Million square foot project that will encompass the land running from exits 97 and 98 on I-95 near Selma. Retail? You want retail? Okay, this feature a massive amount fo retail, restaurant, office medical space, hotels, senior living, residential development etc….A total of 1 Million square feet will be created. Wow! This isn’t your parent’s Johnston County!!!
Locals will enjoy a farmer’s market, farm to table dining options and other ways to make the residents and workers feel “grounded”.
What Are You Looking For?
Our team here at Kima Commercial would love to earn your business. Whether you need land to build commercial space on, land for residential development, office, industrial, leasing, etc… our team stands ready and welcomes your business. Our partners are all encompassing. In other words there isn’t a commercial real estate team member we cannot bring to the table for you. Meaning if you need a reputable commercial builder to build or do an upfit or just quote one for you, civil engineers, architects, inspectors, designers, etc…we can help. Please feel free to visit us at one of our two offices. We currently run our day to day operations for our commercial business out of the Brier Creek location in Raleigh and also have an office in Wake Forest. We have sold all across the state of North Carolina and have resources across the country.