STATE OF DOWNTOWN RALEIGH PREVIEW
#STATEOFDOWNTOWN
Leaders
#STATEOFDOWNTOWNTHANK YOU TO OUR INVESTORS
Visionaries
#STATEOFDOWNTOWNTHANK YOU TO OUR INVESTORS
#STATEOFDOWNTOWN
Champions
THANK YOU TO OUR INVESTORS
#STATEOFDOWNTOWNTHANK YOU TO OUR INVESTORS
Advocates
Supporters
#STATEOFDOWNTOWNTHANK YOU TO OUR INVESTORS
AT&T North Carolina
Atlas Stark Holdings
Avison Young
Bohler Engineering
Carpenter Development
Cii Technology Solutions
Clancy & Theys Construction Company
Cline Design
Colliers International Raleigh-Durham
Deco Raleigh
Duke Raleigh Hospital
French | West | Vaughan
HH Architecture
JDavis
Lincoln Apartments
LS3P
MDO Holdings
Monarch Realty Co
Morningstar Law Group
Overture Centennial
Paragon Bank A Division of TowneBank
RATIO
Stewart
TradeMark Properties
Whiting-Turner
William Peace University
1-Mile Radius Downtown Municipal Services District Boundaries
Fayetteville Street District
Moore Square District
WarehouseDistrict
Capital District
Glenwood South
District
Seaboard/Person Street
District
#STATEOFDOWNTOWNDOWNTOWN RALEIGH
• 375+ Storefront Businesses
• 48,000 Employees
• 3.4 Million Visitors Annually
• 10,877 Residents
• 95% Office Occupancy
From 1972-1977, downtown lost 44% of its retailers
#STATEOFDOWNTOWNDOWNTOWN’S DOWNTURN
#STATEOFDOWNTOWNFOUNDATION FOR GROWTH
50% OF RESIDENTS WITH BACHELOR’S
degree or higher1
TALENT CREATIVITY INNOVATION HIGH QUALITY OF LIFE
$2.5 BILLION IN COMBINED
RESEARCH AND DEVELOPMENT
EXPENDITURES IN 2014 BY DUKE, UNC,
AND N.C. STATE
1US Census
#STATEOFDOWNTOWNAN OLD WAREHOUSE...
#STATEOFDOWNTOWNBECOMES A MULTI-MODAL STATION
#STATEOFDOWNTOWNSO THEN ANOTHER OLD WAREHOUSE...
#STATEOFDOWNTOWN
Becomes an office tower, residential building, and retail center with a grocery store and national retailer!
#STATEOFDOWNTOWN
$2.18Bcurrent development pipeline
Planned Under Construction Completed Since 2014
Development and Investment
$786,000,000
$1,032,352,000
$367,997,000
DOWNTOWN DEVELOPMENT
• 4,956 residential units recently delivered, under construction, or planned
• 2,406 units completed since the start of 2015
• 1,025 units under construction
• 1,525 units planned
#STATEOFDOWNTOWNLIVING
2000 2010 2015 2018 2023(Projected)
Within 1 Mile CBD
10,000
0
15,000
5,000
20,000
25,000
#STATEOFDOWNTOWN
Population Growth
LIVING
• 10,877 residents
• 18,000+ residents within one mile of Downtown
#STATEOFDOWNTOWN
6,000
12,000
14,000
2,000
0
8,000
4,000
10,000
Housing Units Population Linear (Population)
2000 2010 2015 2018 2023
Downtown Housing and Population Growth
LIVING
#STATEOFDOWNTOWN
Warehouse8.7%
Fayetteville Street15.3%
Glenwood South31.9%
Moore Square16.5%
Capital14.5%
Seaboard/Person St
13%
Residential Units Recently Delivered, Under Construction or Planned By District
LIVING
LIVING #STATEOFDOWNTOWN
Downtown Class A MSD Greater Downtown Class B + C Downtown Overall Rent
$1,000
$1,600
$600
$200
$0
$1,200
$800
$400
$1,400
Downtown Multifamily Average Rent 2015-2019
Average Rent 2015
Average Rent 2016
Average Rent 2017
Average Rent 2018
Average Rent 2019
$1,425 $1,432$1,389
$1,519
$851$894
$990 $991
$1,265$1,344 $1,325
$1,444
Source: Integra Realty Resources
$1,583
$1058
$1,513
Downtown Class A MSD
Greater Downtown
Class A
Greater Downtown Class B/C
Greater Downtown
Class A/B/C
Triangle Average
Downtown Multifamily Apartment Vacancy
0
2%
6%
4%
8%
10%
12%
LIVING #STATEOFDOWNTOWN
$5.00
$7.00
$6.00
$1.00
$0
$4.00
$3.00
$2.00
MEDIAN RENT PER SQUARE FOOT AMONG PEER DOWNTOWNS
Raleigh
Memphis
Philadelphia
San Francisco
Austin
Boston
Orlando
Columbia, SC
Midtown Atla
ntaDalla
s
Wash
ington D
C
Nashville
Greenville, S
C
Charlotte
Richmond
Affordable Downtown Relative to Peers Nationally
LIVING #STATEOFDOWNTOWN
Source: RentHub
Educated and Talented Workforce
New Companies Starting and Locating in Raleigh
Increasing Demand for New Office Space
TALENTED WORKFORCE LEADS TO STRONG NEED FOR OFFICE SPACE IN RALEIGH
1.3 MILLION+ square feet of new office space under construction or planned
#STATEOFDOWNTOWNOFFICE
#STATEOFDOWNTOWNOFFICE
New Office Supply: Square Feet Under Construction, Planned, and Completed since 2015
Planned Under Construction Complete
1,289,060
713,397
377,000
#STATEOFDOWNTOWNOFFICE
Washington DC
San Francisco
Houston
Austin
Boston
Philadelphia
Raleigh
Charlotte
Nashville
Orlando
Richmond
Atlanta
$0 $20 $40 $60 $70 $80 $90$10 $30 $50
Overall Rate
Class A Rate Only
NATIONAL CLASS A AND OVERALL AVERAGE OFFICE RENT PER SQUARE FOOT IN CBDs
#STATEOFDOWNTOWNOFFICE
95.1% Occupancy Rate
80
82
84
86
88
90
92
94
96
98
2001 20092005 20132003 20112007 20152002 20102006 20142004 20122008 2016 2017 2018 2019
YEAR END + CURRENT OCCUPANCY SINCE 2001
#STATEOFDOWNTOWNOFFICE
Net Office Absorption
#STATEOFDOWNTOWN
-200,000
100,000
300,000
-100,000
0
200,000
400,000
500,000
1Q20
10
1Q20
14
1Q20
12
1Q20
16
1Q20
11
1Q20
15
1Q20
13
1Q20
17
3Q20
18
3Q20
10
3Q20
14
3Q20
12
3Q20
16
1Q20
18
3Q20
11
3Q20
15
3Q20
13
3Q20
17
1Q20
19
Overall Net Absorption Class A Net Absorption
OFFICE
SEM
ART
DR
SEABOARD AVE
HA
LIFA
X ST
KIN
SEY
ST
KINSEY ST
WIL
MIN
GTO
N S
T
E FRANKLIN ST
PACE ST
StateGovernment
Complex
Shaw Innovation & Entrepreneurship
Center2,000 SF
Industrious32,000 SF
The Nest12,600 SF
HQ Raleigh @ Capital Club15,000 SF
HQ Raleigh @ Centerline31,000 SF
WeWork82,000 SF
Spaces35,000 SF
The Locality1,000 SF
HQ Raleigh @ Harrington St
20,000 SF
BLDG Co.2,500 SF
Thinkhouse5,000 SF
LEGEND
Status
Complete
Under Construction
Increase in co-working space from 2017-2019
296%
#STATEOFDOWNTOWNOFFICE
238,000 SQUARE FEET of co-working space under construction or delivered since 2016
#STATEOFDOWNTOWN
2018-2030 Projected Employment Growth
2019 2030 Growth
9,500
48,000
0
20,000
40,000
10,000
30,000
50,000
60,000
OFFICE
Source: HR&A and DRA
• Two people.
• HQ Raleigh
2013
#STATEOFDOWNTOWN
• $11 million funding round
• 21 employees
2015• New office in
Warehouse District
• 100+ employees
2016• 150+ employees
• 43,000 SF in 150 Fayetteville Street
• Will accommodate 400 employees
• $56 million raised since 2013 and increased revenue 400% in the past year
2018
OFFICE
#STATEOFDOWNTOWNOFFICE
#STATEOFDOWNTOWNOFFICE
#STATEOFDOWNTOWN
Visitors to downtown’s top 12 attractions
3.4 M
attendees at outdoor events in downtown in 2018
1M+
Growth in Downtown Tourism since 2007
0
2,000,000
1,500,000
3,000,000
3,500,000
1,000,000
2,500,000
500,000
‘07 ‘08 ‘10 ‘11‘09 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18
47%
TOURISM
NEW
HOT
ELS SE
MA
RT D
R
SEABOARD AVE
HA
LIFA
X ST
KIN
SEY
ST
KINSEY ST
WIL
MIN
GTO
N S
T
E FRANKLIN ST
PACE ST
StateGovernment
Complex
Moore Square
City Market
Duke Energy Center for the
Performing Arts
Raleigh Convention
Center
Red Hat Amphitheater
CAM Raleigh
COR Museum
Marbles Kids Museum
NC State Capitol
NC Museum
of Natural Sciences
NC Museum
of History
State Legislative
Building Governor’s
Mansion
Artspace
Hilton Garden/Homewood
Suites
Nash Square Hotel
Origin
Courtyard Marriott
Marriott City Center
Residence Inn
Element-branded Hotel
Sheraton
Hampton Inn
The Willard
LEGEND
Complete
Planned
Under Construction
Boutique Hotel
Holiday Inn
Longleaf Hotel
Guest House
Seaboard Station
301 Hillsborough
Street
The Nexus
Pope House
#STATEOFDOWNTOWN#STATEOFDOWNTOWNTOURISM
#STATEOFDOWNTOWN
$151.15Average daily room rate, up 18.7%
over 2013
HOTEL ROOM OCCUPANCY:
70.6%
2018 Hotel Market Performance
$60
$20
$40
$120
$80
$140
$160
$100
$-
Wake County
Downtown North Carolina
U.S.
Average Daily Rate Revenue Per Room Occupancy Rate
64%
62%
70%
66%
72%
68%
#STATEOFDOWNTOWNTOURISM
Source: STR and Greater Raleigh CVB
$100
$50
$0
$150
$200
$250
201320122009 2010 2011 2014 2016 2017 20182015
Downtown Raleigh Food and Beverage Sales: 2009-2018
#STATEOFDOWNTOWNDINING + NIGHTLIFE
Source: Wake County Tax Assessor
Glenwood South Fayetteville St Moore Square Warehouse0%
4%
10%
12%
14%
16%
18%
20%
2%
8%
6%
Growth in Food and Beverage Sales in 1st Quarter 2018 vs 1st Quarter 2019
#STATEOFDOWNTOWNDINING + NIGHTLIFE
Source: Wake County Tax Assessor
Glenwood South Fayetteville St Moore Square Warehouse0%
10%
30%
40%
60%
50%
20%
Growth in Food and Beverage Sales in 2018 vs. 2017
#STATEOFDOWNTOWNDINING + NIGHTLIFE
Source: Wake County Tax Assessor
#STATEOFDOWNTOWN
3 4720James
Beard Award
nominations
in 2019
Gold, Silver, and Best in Class
restaurants according to the News
& Observer at the end of 2018, more
than any other Triangle submarket
$240MILLION
Food and
beverage sales
in Downtown
in 2018
Net gain of
restaurants in
Downtown Raleigh
since 2015
16 James Beard Award nominations since 2010
DINING + NIGHTLIFE
RETAIL
Net Gain in Businesses by Storefront Classification from 2010-2019
42%
37% 38%
27%
5%
0%Retail DiningBars/Nightclubs Personal Services
20%
35%
10%
25%
40%
15%
30%
45%
50%42 %GROWTH
9 3 %of stores in Downtown
Raleigh are locally owned
#STATEOFDOWNTOWNSHOPPING
in Downtown
Raleigh’s
retail base
since 2011, the largest in any storefront use for Downtown
#STATEOFDOWNTOWNSHOPPING
MORGAN STREET FOOD HALL TRANSFER CO.
#STATEOFDOWNTOWNFOOD HALLS
Green Space
Greenway or On-street Bicycle Link
Plaza
Museum or other Civic Building
Campus
Creek
FRED FLETCHER
PARK
PULLENPARK
DIX PARK
RALEIGHCITY FARM
FUTURE DEVEREUX MEADOWS
HALIFAX COMMUNITY
CENTER & PARK
MORDECAI HISTORIC
PARK
HALIFAX MALL
MARBLES KIDS MUSEUM
MOORE SQUARE
CITY PLAZA
MARKET & EXCHANGE
PLAZAS
RED HAT AMPHITHEATER
NASH SQUARE
LENOIR ST PARK
CAM
DUKE ENERGY CENTER FOR THE PERFORMING ARTS
NC MUSEUM OF HISTORY
NC MUSEUM OF NATURAL SCIENCES
CHAVIS PARK
CITY CEMETERY
OAKWOOD CEMETERY
WILLIAM PEACE UNIVERSITY
SHAW UNIVERSITY
STATE CAPITOL
322 ACRES
of new parkland being added in the Downtown area with Dix Park and Devereux Meadows
100+ ACRES
of existing public park space within one mile of Downtown
10 PARKS within one mile of Downtown
#STATEOFDOWNTOWNCONNECTIVITY
Source: City of Raleigh and Sasaki
#STATEOFDOWNTOWN
Leader in Central City GreenspaceACRES OF GREENSPACE WITHIN TWO MILES OF THE CENTER OF DOWNTOWN
200
1,000
0
800
400
1,200
600
Raleigh
Philadelphia
Indianapolis
Austin
Minneapolis
Orlando
Atlanta
Dallas
Charlotte
Houston
Seattle
Nashville
Columbus
Note: Methodology used municipal GIS data in each city to measure acres of greenspace within two miles of the center of each respective downtown.
CONNECTIVITY
SEM
ART
DR
SEABOARD AVE
HA
LIFA
X ST
KIN
SEY
ST
KINSEY ST
E FRANKLIN ST
PACE ST
WIL
MIN
GTO
N S
T
Government Complex
GORALEIGH STATIONUNION
STATION
UNION STATION PHASE 2(Planned)
LEGEND
Complete Projects
Under Construction Projects
Planned Projects
Station Projects
Blount-Person Two Way Converstion
Wilmington-Salisbury Street Bike Lanes
Capital Blvd Bridge Replacements
Lenoir-South Two Way Conversion
Peace Street Streetscape
Rosengarten Greenway
West Street Cycle Track Pilot
S. West Street Extension
Jones-Lane Two Way Converstion
Proposed Bike Share Locations
New Transportation Centers
New Interchanges
NewStreetscaping
Conversion of One-Way Streets
Bikeshare
Street Extension
Bike Lanes
#STATEOFDOWNTOWNCONNECTIVITY
MOST WALKABLE PART OF THE TRIANGLE
DOWNTOWN RALEIGH
High Walk Score:
96
DOWNTOWNDURHAM
High Walk Score: 93
Downtown Chapel HIll
High Walk Score: 90
AVERAGE OF TRIANGLE CITIES
31
#STATEOFDOWNTOWNCONNECTIVITY
CONNECTIVITY #STATEOFDOWNTOWN
#STATEOFDOWNTOWN
• $111.4 million multi-modal center
• 10 train departures a day
• Amtrak and future Commuter Rail service
CONNECTIVITY
MOST WALKABLE PART OF THE TRIANGLE#STATEOFDOWNTOWNCONNECTIVITY
DREA
MVI
LLE
#STATEOFDOWNTOWN#STATEOFDOWNTOWNARTS + TOURISM #STATEOFDOWNTOWN#STATEOFDOWNTOWNARTS + TOURISM
Photo Credit: Brandon Todd
4,956
497K 1,000
7,430
100
1.3M 6,000
255K
new residential units
square feet of new retail space
square feet of office space
new hotel rooms
new residents
stores and restaurants
new office workers
more overnight stays per year
+
#STATEOFDOWNTOWN#STATEOFDOWNTOWNTHE RESULT?
• Density
• Talent
• Greenspace
• Walkability
• Transit Options
• Quality
• Sense of Place
• Arts
#STATEOFDOWNTOWN#STATEOFDOWNTOWNFOUNDATION FOR GROWTH
THANK YOU!
#STATEOFDOWNTOWN
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