#STATEOFDOWNTOWN STATE OF DOWNTOWN RALEIGH PREVIEW · Wilmington-Salisbury Street Bike Lanes...

STATE OF DOWNTOWN RALEIGH PREVIEW

#STATEOFDOWNTOWN

Leaders

#STATEOFDOWNTOWNTHANK YOU TO OUR INVESTORS

Visionaries


#STATEOFDOWNTOWN

Champions

THANK YOU TO OUR INVESTORS


Advocates

Supporters


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%


$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


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


New Office Supply: Square Feet Under Construction, Planned, and Completed since 2015

Planned Under Construction Complete

1,289,060

713,397

377,000

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


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


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%


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

#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



Glenwood South Fayetteville St Moore Square Warehouse0%

10%

30%

40%

60%

50%

20%

Growth in Food and Beverage Sales in 2018 vs. 2017



#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


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


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

#STATEOFDOWNTOWN STATE OF DOWNTOWN RALEIGH PREVIEW · Wilmington-Salisbury Street Bike Lanes...

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