Q3 2021 MARKET REPORT
DOWNTOWN RALEIGH
SUMMARY AND HIGHLIGHTS: Downtown Raleigh continued to show signs of recovery in the third quarter with a growing storefront economy, expanding residential market, and a number of significant office announcements. Three major development projects broke ground this quarter as demand continues to drive growth across all downtown market segments.
+48
NEW STOREFRONT BUSINESSES OPENED OR EXPANDED Since Jan 2021
95.2%
The downtown residential market is at 95.2% occupancy and has 1,006 residential units under construction. This includes 442 units at Platform, downtown’s largest multifamily development to date, and 400H, a mixed-use development with 242 residential units. Both projects broke ground this quarter. An additional 4,480 residential units are currently planned or proposed in downtown.
RESIDENTIAL OCCUPANCY1
as of Q3
The Downtown Raleigh office market remains a national leader with continued Class A office deliveries in the third quarter and positive net absorption YTD. In early Q3, 421 N. Harrington delivered 225,000 SF of Class A office space. Late in the quarter, the First Citizens Bank Building renovation on Fayetteville Street was completed, which includes 32,000 SF of Class A office space. At the recently completed Tower Two @ Bloc[83] development, McAdams announced a major expansion of their space to 55,000 SF from an existing 10,000 SF in Bloc[83] which will serve as the firm’s new regional headquarters. Raleigh Crossing remains on track for a Q4 2021 delivery with anchor tenant Pendo moving in this December. The new 400H development, which broke DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
1,006
RESIDENTIAL UNITS
under construction CoStar (occupancy statistic does not include properties in lease-up phase) 1 1
ground in Q3, will include over 140,000 SF of office space. An additional 1.6 million SF of office space is currently planned or proposed in the downtown market. That figure includes the early Q4 announcement of Tower Three, a 285,000 SF mixed-use, office tower that will be the third building at the Bloc[83] development. The storefront retail market continued its upward momentum in the third quarter with 14 new storefront business openings and four storefront business closings for a net gain of 10 new storefront businesses in Q3. There have been 48 total new storefront openings or expansions since the beginning of 2021 and 30 business reopenings which tracks to a +71% increase in the pace of new business openings and expansions from 2020 year-to-date. Notable storefront openings this quarter include Anne’s Apothecary, Designed for Joy, (ish) delicatessen, West Street Dog, and Young Hearts Distilling. Average monthly prepared food & beverage sales in downtown were up +5% from Q2 2021 to Q3 2021 and are up +143% from Q3 2020 to Q3 2021.1 Average daily pedestrian traffic increased +17% from Q2 2021 to Q3 2021 and increased +126% from Q3 2020 to Q3 2021. With consistent increases each quarter, both metrics are nearing recovery, though, as of Q3 2021 still remain just below pre-pandemic levels. The Downtown Raleigh hotel market continues to recover as well with a +28% increase in average monthly hotel room sales revenue from Q2 2021 to Q3 2021.1 Downtown’s newest hotel, the AC Hotel Raleigh Downtown, opened with 147 new rooms in Glenwood South and a new hotel, a dual-brand Hilton, broke ground this quarter in the Fayetteville Street District and will add 259 new rooms.
+143%
INCREASE
In Food & Beverage sales from Q3 20201
+126%
INCREASE
In pedestrian traffic from Q3 2020
257,491 OFFICE SF
Delivered in Q3
+51,538
CLASS A OFFICE SF
Net absorption YTD2
$21.1
MILLION
commercial real estate sales in Q3
There were several notable downtown commercial real estate transactions announced in Q3. Loden Properties purchased the boutique hotel Guest House on the east side of downtown for $1.75 million. CityPlat purchased two residential properties on the western edge of downtown: 1213-1217 Hillsborough St. for $2.6 million and Pullen Station Lofts for $8.25 million, or $82,500 per unit. On Fayetteville Street, Empire Properties purchased the commercial portion of The Hudson Building for $8.5 million.
Wake County Tax Administration, DRA 2 JLL 3 Triangle Business Journal 1
DEVELOPMENT UPDATES: Overall, there is over $4 billion of investment in the current Downtown Raleigh development pipeline. This includes $929.2 million in projects completed since 2019, $652.8 million in projects under construction, and $2.5 billion in proposed or planned developments.
$929.2 MILLION
Completed (since 2019)
$652.8 MILLION
Under Construction as of Q3
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
$2.5
BILLION
in Proposed/Planned Developments
$4+
BILLION
in Completed, Under Construction, and Planned Developments
2
Several highly anticipated development projects delivered in the third quarter including 421 N. Harrington (the office portion of Smoky Hollow Phase II), the AC Hotel Raleigh Downtown, and the First Citizens Bank Building renovation. The AC Marriott hotel in Glenwood South added 147 new hotel rooms and 3,860 SF of retail space to downtown and a rooftop bar with sweeping views of the downtown skyline. The First Citizens Bank Building renovation completed this quarter with around 32,000 SF of renovated office space and over 4,000 SF of retail space.
Raleigh Crossing Phase I
First Citizens Bank Building after renovation
Construction is progressing on several major downtown projects as well. Raleigh Crossing is nearing completion and expected to deliver in the fourth quarter. The 19-story tower is already a prominent part of the downtown skyline and will add 287,252 of Class A office space. Pendo, its anchor tenant, plans to move in December to the top floors which have been customized for the tech company and include amenities such as a pizza oven imported from Italy. The tower will also feature Pendo’s name. Construction is still ongoing on the residential projects at 615 Peace and Seaboard Station Block B, both are expected to deliver in 2022. There are 1,006 total residential units under construction in downtown currently.
Three new developments started construction this quarter: The Platform, 400H, and the Hilton Garden Inn/Homewood Suites. The Platform will add 442 units to the Warehouse District and will be downtown’s largest residential development to date. 400H is a mixed-use development with 242 residential units and about 144,000 SF of office space and 16,000 SF of retail space. The dual-brand Hilton Garden Inn / Homewood Suites hotel in the Fayetteville Street District will add 259 hotel rooms within immediate walking distance of the Raleigh Convention Center.
CONSTRUCTION HIGHLIGHT: SEABOARD STATION
Construction site at Seaboard Station DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
Rendering of Seaboard Station 3
Q3 2021 DEVELOPMENT MAP
An interactive development map with updated listings of project information and images is viewable at downtownraleigh.org/ do-business/ developments
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
4
RECENTLY COMPLETED (SINCE 2019) #
NAME
Investment
SF
Units/Rooms
Type
2019 1
TOPPS BUILDING (RENOVATION)
Not available
14,000 SF
N/A
Office/Retail
2
FNB TOWER
$118,000,000
325,869 SF
239 units
Office/Apartment/Retail
3
THE METROPOLITAN APARTMENTS
$52,500,000
274,959 SF
241 units
Apartment
4
MOORE SQUARE RENOVATION
$13,000,000
N/A
N/A
Public Space
5
ONE GLENWOOD
$86,000,000
227,500 SF
N/A
Office/Retail
6
RAINBOW UPHOLSTERY BUILDING (RENOVATION)
$2,859,105
19,300 SF
N/A
Office/Retail
7
TIN ROOF
$842,949
7,526 SF
N/A
Retail
8
150 FAYETTEVILLE (RENOVATION)
$10,000,000
N/A
N/A
Office
9
WEST + LENOIR PHASE 2
$1,734,216
N/A
9 units
Townhome
2020 10
CAMERON CREST
$4,207,192
16,200 SF
6 units
Townhome
11
CITY PLAZA RENOVATION
$3,100,000
N/A
N/A
Public Space
12
HARGETT WEST
$4,000,000
25,500 SF
N/A
Office/Retail
13
LONGLEAF HOTEL
$6,500,000
20,812 SF
56 rooms
Hotel/Retail
14
ORIGIN RALEIGH
$22,702,726
71,794 SF
126 rooms
Hotel/Retail
15
PEACE (SMOKY HOLLOW PHASE I)
$150,000,000
652,500 SF
417 units
Apartment/Retail
16
THE SAINT
$23,000,000
53,199 SF
17 units
Townhome
17
SIR WALTER APARTMENTS (RENOVATION)
$15,000,000
20,000 SF
18 units**
Apartment
18
SOUTH DAWSON RETAIL RENOVATIONS
$471,857
9,746 SF
N/A
Retail
2021 19
HEIGHTS HOUSE HOTEL
Not available
10,000 SF
9 rooms
Hotel
20
THE FAIRWEATHER
$28,000,000
103,250 SF
45 units
Condo/Retail
21
THE LINE APARTMENTS (SMOKY HOLLOW PHASE II) $95,000,000
271,589 Residential SF / 30,000 Retail SF
283 units
Apartment/Retail
22
421 N. HARRINGTON ST (SMOKY HOLLOW PHASE II)
$95,000,000
225,000 Office SF / 20,000 Retail SF
N/A
Office/Retail
23
TOWER TWO AT BLOC[83]
$108,000,000
241,750 Office SF / 30,000 Retail SF
N/A
Office/Retail
24
JOHN CHAVIS MEMORIAL PARK IMPROVEMENTS
$12,000,000
N/A
N/A
Public Space
25
AC HOTEL RALEIGH DOWNTOWN
$25,000,000
88,454 Hotel SF / 3,860 SF Retail
147 rooms
Hotel
26
FIRST CITIZENS BANK BUILDING (RENOVATION)
$9,000,000
N/A
N/A
Public Space
TOTALS:
$929,178,045
2,753,923 Total SF
1,275 units / 338 rooms
27
615 PEACE
$7,000,000
30,300 Residential SF / 2,200 Retail SF
24 units
Condo/Retail
28
333 FAYETTEVILLE (RENOVATION)
$750,000
N/A
N/A
Office
29
208 FAYETTEVILLE (RENOVATION)
Not announced
18,000 Office SF / 9,000 Retail SF
N/A
Office/Retail
30
RALEIGH CROSSING PHASE I
$160,000,000
287,252 Office SF / 12,100 Retail SF
N/A
Office/Retail
31
SEABOARD STATION BLOCK B
$95,000,000
30,000 Retail SF / 345,662 Residential SF 298 units
Apartment/Retail
32
PLATFORM
Not announced
26,740 Retail SF / 353,472 Residential SF
442 units
Apartment
33
400H
$175,000,000
144,410 Office SF / 16,935 Retail SF
242 units
Office/Apartment/Retail
34
HILTON GARDEN INN/HOMEWOOD SUITES
Not announced
260,890 SF
259 rooms
Hotel
UNDER CONSTRUCTION
TOTALS:
$652,750,000*
460,617 Office SF 98,785 Retail SF
1,006 units / 259 rooms
PLANNED & PROPOSED 35
GLENWOOD SOUTH TOWNS
Not announced
30,993 SF
16 units
Townhome
36
865 MORGAN APARTMENTS
Not announced
438,856 SF
401 units
Apartment/Retail
37
320 WEST SOUTH
Not announced
351,394 SF
296 units
Apartment/Retail
38
CITY GATEWAY APARTMENTS (PHASE I)
Not announced
221,608 SF
286 units
Apartment/Retail
39
CITY VIEW TOWNES
Not announced
Not announced
8 units
Townhome
40
CIVIC CAMPUS PHASE I
Not announced
420,000 SF
N/A
Government
41
CIVIC CAMPUS PHASE II
Not announced
180,000 SF
N/A
Government
42
COURTYARD MARRIOTT
Not announced
192,964 SF
179 rooms
Hotel
43
DEVEREUX MEADOW PARK
Est. $14,000,000
N/A
N/A
Park
44
DIX PLAZA & PLAZA PLAY AREA
Est. $50,000,000
N/A
N/A
Park
45
THE EDGE
Not announced
418,000 SF
N/A
Office
46
FOURTH WARD
Not announced
Not announced
10 units
Townhome
47
HOME2 + TRU RALEIGH
Not announced
201,000 SF
190 rooms
Hotel
48
THE LYNDE
$7,000,000
30,000 SF
32 units
Condo
49
THE MADISON & 603 GLENWOOD
Not announced
114,000 Office SF / 12,000 Retail SF
200 units
Office/Apartment/Retail
50
NASH SQUARE HOTEL
$28,776,737
215,665 SF
190 rooms
Hotel
51
NEW BERN AND SWAIN APARTMENTS
Not announced
47,518 SF
28 units
Residential
52
THE NEXUS
Not announced
1,500,000 SF
400 units / 264 rooms
Office/Apartment/Condo/Hotel/Retail
53
PARK CITY SOUTH PHASE I
Not announced
28,500 Retail SF / 343,140 Residential SF
336 units
Apartment/Retail
54
PERSON STREET APARTMENTS
Not announced
92,000 SF
107 units
Apartment
55
RALEIGH CROSSING PHASE 2
Not announced
Not announced
275 units
Apartment/Retail
56
RUS BUS (RALEIGH UNION STATION PHASE II)
$200,000,000
50,000 SF Retail
320 units / 260 rooms
Transit/Apartment/Hotel/Retail
57
SALISBURY SQUARE
$300,000,000
175,000 SF
575 units / 150 rooms
Office/Apartment/Hotel/Retail
58
SEABOARD STATION BLOCK A
$50,000,000
11,400 SF Retail
75 units / 149 rooms
Apartment/Hotel/Retail
59
SEABOARD STATION BLOCK C
$125,000,000
56,000 SF Retail
220 units
Apartment/Retail
60
SMOKY HOLLOW PHASE III
Not announced
Not announced
Not announced
Apartment/Office/Retail
61
TRANSFER CO. FOOD HALL PHASE II
Not announced
8,200 SF
N/A
Office/Retail
62
WEST CABARRUS WAREHOUSES PHASE II
Not announced
289,261 Office SF / 14,306 Retail SF
N/A
Office/Retail
63
501 HILLSBOROUGH
Not announced
166,166 SF
233 units
Apartment/Retail
64
301 WEST CABARRUS
Not announced
N/A
184 units
Apartment
65
1317 HILLSBOROUGH
Not announced
13,268 Retail SF
16 units
Apartment/Retail
66
THE CREAMERY
Not announced
976,000 SF across 3 buildings
261 units
Office/Apartment/Retail
67
BLOOMSBURY MIXED USE
Not announced
3,700 Retail SF / 132,132 Residential SF
135 units
Apartment/Retail
68
TOWER THREE AT BLOC[83]
Not announced
277,500 Office SF / 7,500 Retail SF
N/A
Office/Retail
TOTALS:
$2,553,176,737*
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
1,681,136 Office SF 233,076 Retail SF 7,045,351 Total SF
4,480 units / 1,322 rooms
*Totals based on investment estimates **Renovation added 18 new units
5
MARKET HIGHLIGHTS
OFFICE MARKET
OFFICE
Q3 2021 Average Rent PSF (Class A)1
$37.19 Average Rent PSF (Total)1
$36.01 Office Occupancy2
89.8%
Raleigh Skyline View from Glenwood South
Downtown Raleigh has had major office deliveries this year with 499,241 SF delivered YTD, which includes Tower Two at Bloc[83], 421 N. Harrington, and the renovated SF at the First Citizens Bank Building. Raleigh Crossing Phase 1 will deliver an additonal 287,252 SF of Class A office space by the end of the year. Overall office occupancy decreased slightly to 89.8%2 this quarter while net absorption has remained positive YTD. Newly completed office buildings continue to secure significant leases, with Tower Two at Bloc[83] leasing 55,000 SF this quarter to McAdams, who relocated their headquarters to their newly expanded space in Raleigh.
PERFORMANCE INDICATOR: PARKING DECK OCCUPANCY4
Parking deck occupancy across the nine City of Raleigh downtown parking decks has been increasing since the beginning of the year, with an 81% increase from Q1 to Q3. This is one indicator of workers returning to downtown offices.
AVERAGE PARKING DECK OCCUPANCY (ACROSS 9 DECKS)
Office SF delivered YTD3
499,241 SF
+81%
Increase in Parking Deck Occupancy4
FROM Q1 TO Q3 2021
#2 MILLENNIAL MAGNET IN THE U.S. Raleigh
Business Facilities July 2021
JLL CoStar 3 DRA 4 City of Raleigh Parking, DRA 1
2
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
6
MARKET HIGHLIGHTS
RESIDENTIAL MARKET
RESIDENTIAL
Q3 2021
Occupancy1
95.2% Asking rent per SF1
$2.21
Up 8.3% from Q2 2021
Units under construction2
1,006
Rendering of Platform (Source: Kane Realty Corp)
Apartment occupancy remains high in downtown at 95.2% occupancy as demand has been persistent for downtown units throughout the year, which has slightly increased downtown rental rates as well. The Line Apartments (part of Smoky Hollow Phase II) is already at 94.7% occupancy since opening in Q1 of this year. In Q3, two new multifamily developments broke ground: Platform and 400H. Platform is located in the growing Warehouse District and will have 442 units. A later phase of this project will include retail and office space. Construction also began at 400H, which will include 242 units as part of a new mixed-use tower on Hillsborough Street. Construction is progressing on the residential projects of 615 Peace and Seaboard Station Block B. There are 1,006 residential units under construction across these three projects, which is a +212% increase in the number of units under construction from Q2.
DOWNTOWN RESIDENTIAL PIPELINE: HOUSING UNITS Planned & Proposed
Completed since 2015
Units completed since 20152
3,451
Increase in downtown housing units since 20152
101% CoStar DRA
1
2
PLACE #2 BEST TO LIVE 2021
(Raleigh-Durham) US News & World Report
CITY FOR #6 BEST HOUSING
AFFORDABILITY
Under Construction
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
Raleigh Metro
Filterbuy (study of 54 largest US cities based on U.S Census data) 7
MARKET HIGHLIGHTS
RETAIL MARKET
STOREFRONT
Q3 2021 Retail SF under construction
98,785 SF New storefront business openings & expansions (Q3)
14 Anne’s Apothecary opened in September in the Fayetteville Street District
Net new businesses YTD
In Q3, the retail market continued its momentum with 14 new storefront openings and expansions, making a total of 48 new storefront businesses opened or expanded in 2021. This tracks to a +71% increase in the pace of new business openings and expansions from 2020 year-to-date. There were four storefront closings in the second quarter for a net of 10 new business in Q3 and 32 total net of new and expanding businesses in 2021. Additionally, 30 businesses that temporarily closed in 2020 and 2021 have reopened since the beginning of the year.
32
#1
BEST CITY TO START A BUSINESS
Raleigh
For those interested in opening a new business, check out grant programs and resources at the link below: downtownraleigh.org/do-business/incentives-and-business-resources
LendingTree 2021
DRA
1
PERFORMANCE INDICATOR: PEDESTRIAN DATA AVERAGE DAILY COMBINED COUNT ACROSS FIVE COUNTER SITES IN DOWNTOWN1
+126%
INCREASE FROM Q3 2020
+17%
INCREASE FROM Q2 2021
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
8
MARKET HIGHLIGHTS
RETAIL MARKET
STOREFRONT
Q3 2021 Average monthly food & beverage sales in Q31
$20.2
MILLION $8.3 Million in Q3 2020
Parklet at Pelagic Beer & Wine
Downtown food & beverage sales have increased throughout the past year, showing recovery from the pandemic. There has been a +143% increase in sales since Q3 2020. Fayetteville Street district had most significant growth this quarter with a +53% increase from sales in Q2. This is still at 68% of pre-pandemic sales in this district.
FOOD AND BEVERAGE SALES BY DISTRICT IN Q31 Capital District
Glenwood South
Moore Square District
Restaurants & bars in downtown with outdoor seating
160+
Craft breweries & distilleries in downtown
9
Warehouse District Fayetteville Street
Wake County Tax Administration, DRA 1
PERFORMANCE INDICATOR: AVERAGE MONTHLY FOOD AND BEVERAGE SALES BY QUARTER1
+5%
INCREASE
FROM Q2 2021
+143%
INCREASE
FROM Q3 2020
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
9
Q3 2021 STOREFRONT ACTIVITY
(AND EARLY Q4)
Looking for retail space? Visit: downtownraleigh.org/ do-business/space-available
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
10
Q3 2021 STOREFRONT BUSINESS ACTIVITY #
Business Openings in Q3
Type
Date
1
F45 Training
Service
July 2021
2
Game Theory
Retail
July 2021
3
The Brightening Co.
Service
July 2021
4
Oak City Sports Cards
Retail
July 2021
5
(ish) delicatessen
Restaurant
July 2021
6
Buena Papa Fry Bar in Morgan Street Food Hall
Restaurant
July 2021
7
Pearl & Peril
Bar
July 2021
8
West Street Dog
Service/Bar
August 2021
9
The Avenue
Bar
August 2021
10
Young Hearts Distilling
Distillery
August 2021
11
Designed for Joy
Retail
August 2021
12
Anne’s Apothecary
Retail
September 2021
13
Union Special
Restaurant
September 2021
14
Highgarden & Botanical Lounge
Bar
September 2021
Early Q4 Openings 17
The Darby
Bar
October 2021
18
Hartwell
Retail/Experiential
October 2021
19
TG Floristry
Retail
October 2021
20
Office Revolution
Service
October 2021
Business Closings in Q3 1
Litmus Gallery & Studio
Art
July 2021
2
J Betski’s
Restaurant
August 2021
3
Taylor White Pop-Up
Art
August 2021
4
NY Bagel Cafe and Deli
Restaurant
September 2021
Coming Soon 1
Tacos El Patron 323
Restaurant
Fall 2021
2
Rainbow Luncheonette
Restaurant
Fall 2021
3
The Pink Boot
Bar
Fall 2021
4
The Venue
Event
Fall 2021
5
Zenith Raleigh
Bar
Fall 2021
6
Nashona
Retail
Fall 2021
7
Longleaf Swine
Restaurant
Winter 2021
8
Vault Craft Beer
Bar/Taproom
Winter 2021
9
Soul Taco
Restaurant
Winter 2021
10
Jew Fro
Restaurant
Winter 2021
11
El Toro Loco Taqueria
Restaurant
Winter 2021
12
Dose Yoga and Smoothie Bar
Service
Winter 2021/22
13
Raleigh Midwood Smokehouse
Restaurant
Spring 2022
14
J Lights Market & Cafe
Restaurant
Spring 2022
15
Madre
Restaurant
2022
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
11
MARKET HIGHLIGHTS HOTEL & TOURISM
HOTEL + TOURISM MARKET
Q3 2021
259
hotel rooms under construction
1,600+ The AC Hotel Raleigh Downtown
As events start to return to downtown, hotels are seeing increases in occupancy and revenue. The average monthly revenue for downtown hotel room sales in Q3 were 28% higher than in Q2. Popular annual Downtown Raleigh events such as Hopscotch, Brewgaloo, and the International Bluegrass Music Association’s World of Bluegrass festival were held in September bringing more visitors back into the downtown core. Downtown also added 147 new rooms this quarter with the opening of the AC Hotel Raleigh Downtown in Glenwood South. The dual-brand Hilton Garden Inn / Homewood Suites hotel in the Fayetteville Street District began construction this quarter and will add 259 hotel rooms within immediate walking distance of the Raleigh Convention Center. Downtown Raleigh currently has over 1,600 hotel rooms, with 338 rooms built since 2020.
PERFORMANCE INDICATOR: DOWNTOWN RALEIGH HOTEL ROOM SALES1 In Q3, the average monthly hotel room sales revenue was $5.3 million for Downtown Raleigh which was a +28% increase from Q2.1
existing hotel rooms in downtown
156
new hotel rooms added in 2021
+28%
Increase in average monthly hotel room sales revenue
Q2 2021 TO Q3 20211
Wake County Tax Administration, DRA 1
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
12
NEWS & EVENTS STATE OF DOWNTOWN RALEIGH 2021: On September 9th, Downtown Raleigh Alliance released its annual State of Downtown report. The 90-page report includes data and trends in downtown for residential, office, retail, and hotel markets. The report highlights the recovery in downtown as well as the existing assets in downtown such as cultural institutions and infrastructure. View or download the full report at this link
POP-UP SHOPS AT MARTIN STREET Downtown Raleigh Alliance has partnered with Wake Tech on a pop-up retail store program to offer downtown retail space at a discounted rent price for minority-and-women-owned businesses. This storefront location will be available for pop-up retail tenants looking to share an affordable retail space with other up-andcoming retailers, participate in business counseling, and experience the Downtown Raleigh market. See more progam details at this link The pop-up storefront at 17 E Martin St
DINE OUT AT FIRST FRIDAY First Friday is a monthly celebration of arts and culture that occurs on the first Friday of every month this fall. The event has been combined with Dine Out Downtown for a larger celebration of downtown culture that includes street closures with expanded outdoor dining.
2,966 average attendance for Dine Out @ First Friday
Dine Out @ First Friday on Fayetteville Street
JAZZ IN THE SQUARE This past quarter DRA launched a new activation in partnership with City of Raleigh called Jazz in the Square. The free concert series featuring live jazz performances by local musicians was held in Moore Square on Thursday evenings and brought more people into downtown.
1,643 average attendance to Jazz in the Square DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
13
mographics11
DOWNTOWN DEMOGRAPHICS1
esident Population
11,820
12,000+
Downtown Population Growth Resident 2010-2025
Population
16,000 14,000
owntown Employees
48,000
48,000
12,000 10,000
Downtown Employees
8,000
edian Age
32.9
verage Household Income
$85,871
6,000 4,000 2,000
32.9 2025
0
2010
2015
$85,871 Average Household Income
Downtown Population Growth 72 DOWNTOWN POPULATION GROWTH [2010-2025] 2010-2025 16,000
29
14,000
3
3
12,000
(c ity )
R TP
ow nt
2,000
D
Bachelor’s of population with bachelor’s Degree or degree or higher Higher
R al ei gh
ow n
4,000
D ur ha m
H ill s
6,000
N or th
R al ei gh
8,000
59%
60%
10,000
to w n
Median Age (projected)
Employees Per Acre
85
1
2020
0
2010
2015
2020
2025 (projected)
ESRI, DRA
1
DOWNTOWN POPULATION BY AGE
Downtown Population by Age
30%
59%
25% 20%
R al ei gh
(c ity )
3
SRI, DRA ntown
15% 10% 5% 0% 19 and under
of population with bachelor’s 25-34or higher 35-44 45-54 degree
20-24
Downtown
Raleigh MSA
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
Population by Age
55-64
65+
USA 14
p it a Ca l B pi
Ob e rlin Rd
Ca Glenwoo d
Av e
ABOUT DOWNTOWN RALEIGH ALLIANCE (DRA)
Glenwood
Ave
DRA has a mission of Advancing the vitality of Downtown Raleigh for everyone. The DRA facilitates this mission through five goals:
Seaboard + Person Street District W Peace St
St
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Ne w Bern Ave
S Salisbury St
Moore Square District
Fayetteville Street District
E Lenoir St
W South St
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Garner R
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Da w so n
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SW
SM cd ow el
ilmington St
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St
Weste
St
Blvd
e
el
ke La
DOWNTOWN RALEIGH Q3 2021 MARKET REPORT
E Edenton St
E Morgan St
W Lenoir St
Weste rn
N East St
N Dawson S t
W Edenton St
Warehouse District
W Cabarrus St
For additional information and resources visit: downtownraleigh.org/do-business
CONTACT FOR ANY DATA QUESTIONS: Annie Alexander Research Manager Downtown Raleigh Alliance 919.821.6981 anniealexander@downtownraleigh.org
Capital District
St
physical connectivity 4 Improving and accessibility within and Positioning the DRA as a reliable, responsive, representative, and mission-directed.
c
W Morgan St
around Downtown;
N Boundary St
S East St
positive, balanced activations across Downtown;
on S t ilm ingt W
Hillsborough
M
well St do
Av e he As
N
Glenwood South District
Fostering a thriving and diverse storefront economy;
5
E Peace St
N
with Downtown’s diverse community;
y ur
N Person St
a culture of authentic 1 Building engagement and inclusion
2 strategic 3 Facilitating partnerships to produce
lvd lvd l B ta
Wad e Ave
DOWNTOWN BOUNDARY AND DISTRICT MAP LEGEND Downtown Boundary Downtown Municipal Service District (MSD)
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