Raleigh’s RTP – Live, Work, Play

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.

RTP Durham

View of RTP from the south

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.

From Downtown to Midtown in Raleigh

From Downtown to Midtown in Raleigh

 

With the addition of Troutman Sanders to the top floor of Midtown Plaza in North Hills, the movement from Downtown to Midtown continues. Joining Allscripts and SunTrust Bank, the law firm and its in-house lobbying group will make the move from its current downtown location at Two Hanover Square in January taking just under 17,000 square feet on the top floor.

1-1896218This move seems to continue the migration of businesses from downtown to Midtown as Class A office space expands in Midtown. This move will bring the occupancy level at Midtown Plaza to 94%, according to Kane Realty Corp.

The attraction of Midtown Raleigh has become a force to be reckoned with as cranes fill the sky line and new restaurants, hotels, and office buildings fill the area around North Hills and I-440. North Hills has grown exceptionally well since its humble beginnings and has been on the fast track ever since the original North Hills Mall was redeveloped. This has made the Midtown area prime for office expansion. Current existing office products include the Bank of America Tower at 300,000 RSF, the Captrust Tower at 300,000 RSF and Midtown Plaza at 329,000 RSF. Coming soon is Tower 4 which, at 28 stories and 450,000 RSF, will be the tallest building at Six Forks and the I-440 beltline. Tower 4 will be a mixed use Class A office building anchoring North Hills. Tower 4 will consist of 18 stories of Class A office space over a 9 level parking deck and street level retail.

Driving this growth is the densest live, work, shop, play and stay area in the city offering retail, apartments, office and hotels. In addition, there is never a dull moment as there are constant activities including the Midtown Beach Music Series. And if you are from out of town traveling for work or pleasure, three hotels (Hyatt House, AC, and The Renaissance) provide great options for accommodations close to excellent restaurants, shopping, and entertainment. The Renaissance offers 4 Star amenities with 222 rooms all adjacent to over 130 shops and restaurants within walking distance. The Hyatt House offers a more “at home” feel to your stay and is directly adjacent to the office towers. The new AC Hotel is European inspired with a modern flare.

Midtown has become a destination center for not only shopping and dining but for working as well. Further, given its location, people and businesses are flocking to be a part of Midtown Raleigh. There is no end in sight to the creativity and development diversity at Six Forks Road and I-440.

If you have any commercial real estate needs in the Raleigh/Durham/Wake Forest area, please give us a call to let us know how we can help you! We can be reached via our company website which is: www.kimacommercial.com and/or reach our commercial real estate agent Dan Tilley. From land to leasing to multi-family and commercial development – even design/build – we’d love the opportunity to help you with your commercial real estate needs!

Be sure to keep up with us on Facebook at Facebook.com/KimaCommercial to stay in the loop on what’s going on in the Triangle when it comes to commercial real estate, to see our featured listings and more!

We look forward to hearing from you soon to find out how we can best be of assistance.

 

 

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Keller Williams Preferred Realty, 7751 Brier Creek Parkway, Suite 100, Raleigh, NC

919-336-1700

Peter@KimaCommercial.com

We look forward to working with you!