2018 State of Downtown Raleigh Report

2018

|

DOWNTOWN RALEIGH ALLIANCE

LETTER FROM RALEIGH’S MAYOR WELCOME! Thank you for your interest in downtown Raleigh. The pages of this State of Downtown report are meant to provide you with an accurate glimpse of the incredible investments and opportunities you will find in our community. The importance of downtown to the City of Raleigh and the region cannot be understated.

In the last decade, downtown Raleigh has reinvented itself. Transitioning from a quiet main street pedestrian mall with a small retail base and few residents, to the center of a City that keeps finding itself on the top of national lists for best places to live, work, and play.

Downtown Raleigh is home to a rapidly growing population, innovative companies, award winning restaurants, risktaking entrepreneurs, and amazing cultural institutions, and is also the place where Raleigh comes together and engages as a community. It is the civic, commercial, and cultural face of Raleigh. That face continues to mature beautifully, and this current development boom of more than $1.75 billion is delivering projects that are reshaping both our skyline and streetscape in significant ways.

New residents have moved into more than 1,800 units that have been built in the past three years, and the downtown population now tops 8,500. Multiple grocery stores and many other amenities are under construction to support resident growth. Additionally, the thriving convention and tourism industry continues to fill downtown with 3.4 million visitors each year, and nearly one million people attend our downtown special events.

We are seeing exponential growth in modern co-working spaces. These spaces provide many of our homegrown start-up companies with tight-knit environments in which to thrive.

Just as Raleigh leaders of the past had a vision for the vibrant downtown we enjoy today, today’s leaders continue to look to the future. Our new multi-modal center, Raleigh Union Station, opened in the spring of 2018. Working with the broader community, the Wake Transit Plan will bring Bus Rapid Transit and commuter rail to downtown in the near future.

Collaborative efforts will also increase opportunities for the public to utilize greenspaces. Renovations are currently underway at the historic Moore Square site, and our newest greenspace, the 308-acre Dix Park, is in the midst of a community-wide master planning effort.

I am proud of this City and the work that has gone into helping Raleigh and its downtown grow. As you read this publication, you will find additional information about the developments, demographics, marketplace dynamics, and other topics related to investing downtown. The Downtown Raleigh Alliance team and City of Raleigh Office of Economic Development are available to discuss inquiries you have about investment opportunities in Raleigh.

Sincerely,

Nancy McFarlane Mayor

CONTENTS 04 | INTRODUCTION TO DOWNTOWN 20 | LIVING 28 | OFFICE, INNOVATION, EMPLOYMENT & TALENT 40 | CONNECTIVITY & SUSTAINABILITY 50 | SHOPPING 56 | DINING & NIGHTLIFE 60 | ARTS, CULTURE & TOURISM

Seaboard/ Person Street District

Glenwood South District

Capital District

Moore Square District

Warehouse District Fayetteville Street District

1-mile radius

Downtown

Municipal Services District boundaries

FAST FACTS TOTAL NUMBER OF EMPLOYEES:

VISITORS TO OUTDOOR FESTIVALS:

47,000

929,000

OFFICE OCCUPANCY: 94.7%

PERCENTAGE OF RESIDENTS WITH BACHELOR’S DEGREE OR HIGHER: 47%

SQUARE FEET OF PRIVATE OFFICE SPACE: 7.2 million

ENROLLMENT IN RALEIGH UNIVERSITIES: 39,848

HOTEL ROOMS: 1,257 HOUSING UNITS: 5,472 HOTEL OCCUPANCY: 71.3% AVERAGE RENT: $1,444 AVG. HOTEL DAILY ROOM RATE: $148.71 POPULATION WITHIN ONE MILE: 16,971 RETAILERS: 113 HIGH WALK SCORE: 96 RESTAURANTS: 152 ACRES OF PARKS NEAR DOWNTOWN: ARTS & CULTURAL INSTITUTIONS: 42

447*

VISITORS TO TOP ATTRACTIONS: 3.4

JAMES BEARD NOMINATIONS SINCE

million

2010: 13

*Includes 308-acre Dix Park still in progress

© Flyboy Photography

INTRODUCTION TO DOWNTOWN

Downtown Raleigh is in the midst of historic growth.

Since 2005, downtown has seen over $3 billion in development completed and under construction, which has added new residences, convention space, offices, retail, entertainment venues, hotels, and restaurants.

This once-sleepy downtown has been transformed into a vibrant center of activity. The future is even brighter for downtown with growth poised to add thousands of new residents, workers, visitors, stores, businesses, parks, and infrastructure. In 2017, downtown’s rapid growth continued in every asset class, and the pipeline remains full of exciting projects that will continue to make this one of the fastest growing downtowns in the country.

Downtown is also home to a thriving creative culture with artists, musicians, innovative tech companies, award-winning chefs, and cutting-edge makers all sharing and creating in downtown Raleigh.

WHAT DOES NEW GROWTH MEAN FOR THE FUTURE?

3,425 5,500 new residential units

new residents

335K 100 +

square feet of new retail space

+

stores and restaurants

1M 5,000+

square feet of office space

new office workers

1,000 365K new hotel rooms

more overnight stays per year

INTRODUCTION TO DOWNTOWN | 7

MORE DEVELOPMENT

MORE RESIDENTS

$1.75B

current development pipeline

• 3,425 residential units recently delivered, under construction, or planned • 1,803 units completed since start of 2015 • 8,500 residents live in downtown • 35% increase in residents since 2015 • 95% occupancy rate for all multi-family properties in downtown

MORE EMPLOYEES

Densest office market in Triangle with more office space and employees per acre than any other submarket

94.7% OFFICE OCCUPANCY RATE, highest year end occupancy rate in over a decade

589,854 SQUARE FEET Class A office space under construction or soon to begin construction

221,000 SQUARE FEET of co-working space under construction or delivered since 2016

442% INCREASE in co-working space from 2015-2019

47% OF RESIDENTS WITH BACHELOR’S degree or higher

MORE CONNECTIVITY

96 High walk score in downtown, highest walk score in entire region—most walkable part of Triangle

$88M multi-modal center, Raleigh Union Station

320 acres of new parkland being added in downtown area with Dix Park and Devereux Meadows

57 Bike Share: 30 stations and 300 bicycles

miles of new mass transit planned with 20 miles of Bus Rapid Transit and 37 miles of commuter rail

MORE RETAIL

MORE VALUE

31% 106%

increase in value for downtown property

• 40 new stores added since 2014

between 2008-2016

• 46% growth in its retail base since 2010, largest growth in any storefront use for downtown • THREE GROCERY STORES! Weaver Street Market, Saxapahaw General Store, and Publix open in 2018 and 2019 • TWO FOOD HALLS! Transfer Co. and Morgan Street Food Hall both open in 2018

increased land value in downtown between 2008-2016

MORE RESTAURANTS AND NIGHTLIFE

95% GROWTH $223 MILLION

in Food and Beverage Sales since 2009 with 10% Growth in sales in 2017 over 2016

15

Gold, Silver, and Best in Class restaurants in 2017, more than any other submarket of the Triangle

3

Food and beverage sales in downtown in 2017

James Beard Award nominations in 2018

MORE VISITORS

3.4M

Visitors to downtown’s top 12 attractions

46% INCREASE in visitors since 2007 including 7% growth in 2017

37%

Growth in Revenue Per Hotel Room over 2013 to $104.09 per room

18% GROWTH in hotel room occupancy since 2013 in downtown

INTRODUCTION TO DOWNTOWN | 9

Š Flyboy Photography

DOWNTOWN: VALUABLE AND RISING The additional tax revenue generated by dense, downtown development can provide needed funds for new or additional government services from police and fire protection to affordable housing or new infrastructure such as sidewalks, bike lanes, green space, and a bike share system for Raleigh.

This additional tax revenue is generated on far less land than development outside the CBD. Downtown is Raleigh’s most valuable area, as shown below, with downtown in the center of the map.

Property Values Per Acre, 2016

ASSESSED VALUE PER ACRE Less than $250,000 $250,000-$500,000 $500,000-$1,000,000 $1,000,000-$2,000,000 $2,000,000-$3,000,000 $3,000,000-$4,000,000 $4,000,000-$5,000,000 $5,000,000-$7,500,000 $7,500,000-$10,000,000 More than $10,000,000

Source: City of Raleigh Planning Department, Ray Aull

This map depicts the total assessed value of each parcel on a per acre basis as of February, 2016.

Source: Wake County Revenue Department

By Ray Aull, City of Raleigh Planning

INVESTMENTS IN DOWNTOWN ARE YIELDING BIG PROFITS FOR DEVELOPERS ACROSS ASSET CLASSES, INCLUDING OFFICE AND RESIDENTIAL PROPERTIES. CHARTER SQUARE: 24% return on investment

SKYHOUSE: Sets record for multi-family property sale in the Triangle at $320,000 per unit

$350

$100

$80

$250

Price (in millions)

Price (in millions)

$300

$200 $150 $100

$60

$40

$20

$50 $0

$0 Investment

Sold

Development

Sold

Source: Triangle Business Journal

TAX REVENUE | AVERAGE PROPERTY TAX YIELD PER ACRE (CITY AND COUNTY) BY DEVELOPMENT TYPE Denser development in downtown results in more efficient use of land and much higher value per acre than low-rise commercial development. For example, a downtown office tower pays an average of $927,802 in property taxes per acre, per year, while a big box retailer in Raleigh pays an average of $5,784 per acre annually. Downtown multi-family apartment buildings also yield more efficient tax revenue per acre, as they average $230,515 per acre in property taxes to the city and county governments versus just over $14,507 per acre for large apartment complexes throughout the rest of the city. $1,050,000

$927,802

$900,000

Property Tax Value (per acre)

$750,000

$600,000

$450,000

$300,000

$230,515

$150,000 $55,813 $0

$2,979

$5,784

$14,507

Single Family Home

Big Box Store in Raleigh

Apartment Complexes Outside CBD

Source: Wake County Tax Assessor’s Office

Malls in Raleigh

Downtown Multifamily Apartment Building

Downtown Skyscraper

INTRODUCTION TO DOWNTOWN | 11

POPULATION | PERCENTAGE INCREASE SINCE 2000

COMPLETED, UNDER CONSTRUCTION, AND PLANNED INVESTMENT BY DISTRICT SINCE 2015

Downtown Raleigh’s population has grown by 179% since 2000 with the addition of over 3,500 residential units in the past 17 years in buildings like Park Devereux, PNC Plaza, The Hudson Condominiums, The Dawson, Hue Apartments, Palladium Plaza, West at North, 222 Glenwood, 712 Tucker, SkyHouse, The L, Elan City Center, Edison, Link, The Gramercy, and St. Mary’s Square.

Every district will see significant private and public investment.

Fayetteville Street $309,600,000 Glenwood South

DOWNTOWN RALEIGH

Capital

$484,540,000

$142,500,000

CITY OF RALEIGH

Warehouse $244,100,000 Moore Square

STATE OF NC

0%

20%

40%

60%

80%

$230,505,000

100%

120%

140%

160%

180%

Source: U.S. Census

Source: DRA

DENSITY | PEOPLE PER SQUARE MILE

DEVELOPMENT AND INVESTMENT $1.75 BILLION DEVELOPMENT PIPELINE of recently completed, under construction, or planned development • $516 million completed since 2015 • $639 million under construction •$ 480 million announced (plus more projects proposed with unannounced investment totals) • Includes $200 million in public investment

$515,700,000

$480,000,000

$639,000,000

Downtown

City of Raleigh

Wake County

5,909/SM

3,201/SM

1,195/SM

Sources: U.S. Census, ESRI Business Analyst, City of Raleigh, Wake County

Planned

Under Construction

Complete

17% growth in average household income projected for downtown residents between 2017-2022.ยน

DOWNTOWN DEVELOPMENT PIPELINE | SINCE START OF 2015

Planned

Under Construction

OFFICE SQUARE FEET

Complete

RESIDENTIAL UNITS

1,600,000

4,000

1,400,000

3,500

1,200,000

744,000

553

3,000 1,069

1,000,000

2,500

800,000

2,000

600,000

423,000

427,000

0

500 0

RETAIL SQUARE FEET

HOTEL ROOMS

400,000 350,000

1,803

1,000

400,000 200,000

1,500

1,400 64,129

300,000

1,200

1,000

250,000 200,000

196,347

800

888

600 150,000 400

100,000 50,000

115,500

134 200 175

0

ยนU.S. Census

0

INTRODUCTION TO DOWNTOWN | 13

ON THE MAP | DOWNTOWN DEVELOPMENT 2016 TO PRESENT

PACE ST

SEABOARD AVE SEMART DR

21 10 48 26

HALIFAX ST

20

38

E FRANKLIN ST

47

19

5

State Government Complex

49 12 13

16 8

6

51

WILMINGTON ST

1

30

2

37

15

25 31

24 22 29

36 39

34

27 9

14

42 45

KI

T

LEGEND

32

41 43

Development Type

17

Mixed Use

35

50 28

11

Hotel Office Residential Retail and Service

Source: Triangle Business Journal

City Market

33

3

Public Project

23

4

YS

KINSEY ST

NS E

7

18 44

40

46

DEVELOPMENT NAME

INVESTMENT

TOTAL SQUARE FEET / UNITS / ROOMS

PROJECT TYPE

COMPLETED 1

ALBERMARLE BUILDING RENOVATION

$42,000,000

192,370

Office

2

CHRIST CHURCH ADDITION

$4,500,000

9,400

Place of Worship

3

DR. PEPPER WAREHOUSE

$3,200,000

14,000

Office

4

EDISON LOFTS

$40,000,000

223 Units

Apartments / Retail

5

ELAN CITY CENTER APARTMENTS

$30,000,000

213 Units

Apartments

6

GOOGLE FIBER OFFICE

$3,000,000

9,926

Office

7

GORALEIGH TRANSIT

$9,900,000

Unannounced

Infrastructure

8

LINK APARTMENTS

$30,000,000

203 Units

Apartments

9

MARKET AND EXCHANGE PLAZAS

$2,000,000

Unannounced

Civic Space

10

NORTH WEST STREET DEVELOPMENT

$5,300,000

24,000

Renovations

11

RESIDENCE INN BY MARRIOTT

$20,000,000

175 Rooms

Hotel

12

THE DEVON FOUR25

$35,000,000

261 Units

Apartments / Retail

13

THE GRAMERCY

$30,000,000

203 Units

Apartments / Retail

14

TONBO RAMEN

$1,058,000

3,270

Restaurant

UNDER CONSTRUCTION 15

10 ARROS

$1,805,000

10 Units

Townhomes

16

THE SAINT

$23,000,000

17 Units

Townhomes

17

502 WEST LENOIR

$-

4,583

Restaurant

18

611 WEST SOUTH

$-

42 Units

Residential

19

REVISN

$-

48 Units

Apartments/Extended Stay

20

CAPITAL BLVD BRIDGES

$36,900,000

Unannounced

Infrastructure

21

CAPITAL BLVD SELF STORAGE

$-

123,000

Service

22

HARGETT PLACE

$14,000,000

19 Units

Townhomes

23

MOORE SQUARE RENOVATION

$12,600,000

4 Acres

Infrastructure

24

MORGAN STREET FOOD HALL

$2,200,000

22,000

Food Hall

25

ONE GLENWOOD

$86,000,000

234,000

Office / Retail

26

PEACE

$100,000,000

417 Units

Residential / Retail

27

POYNER YMCA

$3,000,000

28,000

Service

28

SELF STORAGE FACILITY

$7,873,000

123,000

Service

29

THE DILLON

$150,000,000

541,000 / 260 Units

Residential / Office / Retail

30

THE METROPOLITAN

$52,000,000

241 Units

Apartments

31

THE ORIGIN HOTEL

$-

126 Rooms

Hotel / Parking

32

THE WARE

Part of Transfer Co

15 Units

Residential

33

TRANSFER CO.

$19,000,000

42,000

Retail

34

UNION STATION

$87,950,000

42,000

Public / Office / Retail

35

WEST + LENOIR TOWNHOMES

$-

12 Units

Townhomes

36

107 W HARGETT STREET

$-

Unannounced

Office / Retail

37

400H

$-

160,000 / 216 Units

Residential / Office / Retail

38

BOUTIQUE HOTEL ON PEACE

$-

60 Rooms

Hotel

39

BOYLAN PEARCE BUILDING

$-

31,820

Office / Retail

40

CITY GATEWAY / EXPLORIS SCHOOL

$20,000,000

355,889

School / Office

41

COURTYARD MARRIOTT

$-

192 Rooms

Hotel

42

EDISON OFFICES

$-

303,000

Office / Retail

43

FNB TOWER

$110,000,000

389,702 / 239 Units

Residential / Office / Retail

44

FOURTH WARD

$-

10 Units

Townhomes

45

HILTON GARDEN INN / HOMEWOOD SUITES

$-

259 Rooms

Hotel

46

HOTEL AT WILMINGTON AND LENOIR

$-

145 Rooms

Hotel

47

NORTH CAROLINA FC STADIUM

$-

Unannounced

Stadium / Office / Residential / Retail

48

PEACE STREET STREETSCAPE PROJECT

$2,000,000

Unannounced

Infrastructure

49

ST. MARY’S SUBDIVISION

$-

6 Units

Townhomes

50

THE FAIRWEATHER

$-

45 Units

Townhomes

51

THE WILLARD

$-

125 Rooms / 25 Units

Hotel / Condo

PLANNED

INTRODUCTION TO DOWNTOWN | 15

2010: RED HAT AMPHITHEATER OPENS

DOWNTOWN RALEIGH REVITALIZATION

•P rovides a unique outdoor entertainment venue for the region with the downtown skyline as a backdrop

2003: LIVABLE STREETS PLAN Five transformative projects in five years

2011: CAM RALEIGH OPENS

© Carolyn Scott

•R aleigh’s tallest building at 538 feet, RBC Plaza (now PNC Plaza) completed • 426 luxury condo units completed this year alone at 222 Glenwood, West at North, and RBC Plaza (now PNC Plaza)

•J ustice Center: $153 million investment and LEED Silver certified • SECU: $45 million, 12-story, 240,000 SF, LEED Gold certified

2014: CITRIX MOVES INTO THE WAREHOUSE DISTRICT •O ccupies a 170,000 SF modern office building in a restored warehouse, joining other tech companies to help make downtown a destination for innovative and cutting edge firms

• 1 0-year plan that calls for more green space, retail, density, connectivity, and strategic development

• 240,000 SF, Class A office tower opens on Fayetteville Street, providing more high quality office space to downtown’s tight market

© Tierney Farrell

© Carolyn Scott

•P remier outdoor event location, now hosts thousands of visitors for Winterfest, concerts, movie series, farmers market, and other events

© Tierney Farrell

2015: DOWNTOWN EXPERIENCE PLAN APPROVED

2015: CHARTER SQUARE OPENS 2009: CITY PLAZA OPENS

© Carolyn Scott

•P rovides over 500,000 SF of exhibition and meeting space, along with 390 rooms in the heart of downtown

© Carolyn Scott

2008: RALEIGH CONVENTION CENTER AND MARRIOTT CITY CENTER OPEN

© Monica Slaney

•T he Hudson, The Paramount, and The Dawson give new residential options

• I preo relocated to One City Plaza and brings over 250 jobs to downtown • Red Hat moves into Red Hat Tower after a $30 million renovation, bringing 900+ jobs

© Carolyn Scott

2005: $60 MILLION IN DEVELOPMENT COMPLETED

2013: TECH COMPANIES MOVE DOWNTOWN

© Carolyn Scott

•R ed Hat Tower completed—the $100 million project added over 350,000 SF of office space

© Carolyn Scott

•C ontemporary Art Museum opens anchoring the Warehouse District

1. F ayetteville Street reopened to vehicular traffic 2. Build new Raleigh Convention Center 3. Pedestrian environment improvement 4. Upgrade business climate through regulatory reform 5. Expand downtown management and marketing 2004: TWO PROGRESS PLAZA (NOW RED HAT TOWER) OPENS

© Tierney Farrell

• Over 1,800 units delivered in 2015 and 2016, adding a substantial number of new residents

© Tierney Farrell

2016: RESIDENTIAL GROWTH

HOTEL ROOMS BEING ADDED TO MEET GROWING DEMAND Buoyed by a rising occupancy rate, more business travelers visiting downtown, and a strong interest in expanding Raleigh’s successful convention center, more hotels are coming to downtown

2017: GROCERY STORES ANNOUNCED

Given the rapid growth of downtown’s retail base, food and beverage sales breaking $223 million, and storefront vacancy continuing to hover in the single digits, more ground level space will bring new stores and life to downtown’s streets • 200,000 SF of new ground-level space added to downtown

Publix and Weaver Street Market announced their new locations in downtown Raleigh, which are now under construction, along with Saxapahaw General Store

© Flyboy Photography

MORE GROUND-LEVEL SPACE ADDED TO HELP ACCOMMODATE GROWING RETAIL DEMAND

© S.hughes Imaging

TIMELINE: LOOKING AHEAD MORE GREEN SPACE AND TRANSPORTATION OPTIONS ADDED INCLUDING DIX PARK AND RALEIGH UNION STATION

• The Dillon, One Glenwood, FNB Tower add over 500,000 SF of new office space to downtown • New collaborative work environments like WeWork and Spaces join existing organizations like HQ Raleigh to help more small companies incubate and grow in downtown

© Flyboy Photography

• With over 1,000 units under construction, downtown continues to get denser

© Flyboy Photography

RESIDENTS FLOCK TO DOWNTOWN AS NEW DEVELOPMENTS OPEN

•R aleigh Union Station opens in 2018 • The 308-acre Dix Park gives downtown and Raleigh a signature, urban green space for a wide variety of recreational uses • 14-acre Devereux Meadows provides much needed green space near Glenwood South and the north side of downtown • Moore Square’s renovation provides a dynamic new park in the heart of downtown • 30 stations and 300 bicycles for Raleigh’s new Bike Share • Bus Rapid Transit, Commuter Rail, and Enhanced Bus Service make downtown a center for mass transit

© Flyboy Photography

2018-: MORE OFFICE TOWERS AND COLLABORATIVE SPACE OPEN

INTRODUCTION TO DOWNTOWN | 17

DOWNTOWN RALEIGH 2025 PLAN The City of Raleigh and the Downtown Raleigh Alliance partnered to create a 10-year plan for downtown Raleigh, which builds upon the successes downtown experienced in recent years and provides a new map for guiding growth and development in downtown, and addresses both opportunities and challenges facing downtown over the next decade. This plan seeks to improve park spaces, provide more transportation options, maintain authenticity and character, create a robust retail environment, improve affordable housing options, and establish stronger partnerships for downtown’s future. Many of these initiatives such as new parks, transit, development, retail, streetscaping, and other projects are well underway.

MOVE | MAKE WALKING, BIKING, AND TRANSIT THE PREFERRED WAYS TO GET IN AND AROUND DOWNTOWN The goal of “Move” is to enhance street character and uses along key streets to make walking, biking, and transit the preferred ways to get in and around downtown, while still accommodating automobile traffic. Actions include creating a complete pedestrian and bike network, enhancing transit, and reviewing parking and street grid enhancements.

RETAIL STRATEGY A major initiative of the Downtown Plan and DRA is a robust retail strategy. Improving the retail environment is one of the most important goals for the downtown community and the Downtown Plan highlights this need by building off of DRA’s existing retail efforts (outlined in the Shopping section).

Actions include targeting authentic retailers, identifying a toolkit for retail, and improving wayfinding, art, pop-ups, and parklets.

BREATHE | IMPROVE, EXPAND, AND CONNECT DOWNTOWN’S GREEN SPACE The goal of “Breathe” is to transform downtown Raleigh into a center for innovative urban parks and appealing green spaces, as well as improve existing parks and expand park access to underserved areas of downtown. Actions include renovation of historic squares, addition of new parks at Dix and Devereux Meadows, extending the greenway, and creating sustainable funding and governance structure for these parks.

STAY | REALIZE DOWNTOWN’S POTENTIAL AS A DYNAMIC REGIONAL CENTER ANCHORING TOURISM, ENTERTAINMENT, AND CULTURE

The goal of “Stay” is to provide a balance to downtown, where all are welcomed through strategic new growth and redevelopment. Actions include: •M aintaining downtown character and authenticity through historic preservation and adaptive reuse, public art, and high-quality new construction • Ensuring downtown remains clean and hospitable • Encourage the development of vacant and underbuilt sites to fill the entire downtown with active uses • Create a robust retail environment in downtown to include a combination of local and destination retail • Ensure downtown has a diversity of housing opportunities at different price points • Partner with non-profits and Wake County to address homelessness and work to secure housing for the homeless population

CATALYTIC PROJECT AREAS | FIVE AREAS OF DOWNTOWN HAVE BEEN IDENTIFIED TO SERVE AS EXAMPLES OF HOW THE THEMES AND ACTIONS TRANSLATE INTO PHYSICAL FORM

Gateway Center: On downtown’s southern edge, the opportunity exists to extend downtown several city blocks, facilitated by large parcels, consolidated ownership, and HALIFAX PARK city-owned property.

Pe

lif

Ha

rso

ax

Bl

et

re

St

ou

nt

St

nS

Glenwood Green: This project focuses on creating a new urban park at Devereux Meadows, an improved block pattern created by the Peace Street Bridge replacement, and a greenway connecting Glenwood South with areas to the north and south.

tre

et

re

et

ry

on

gt

in

t

ee

Str

ilm

W

bu

lis

Sa et

re

St

Seaboard/Person Street: This project focuses on improving connectivity through renovations of Peace Street and streetscape improvements to Blount and Person streets with better bicycle and pedestrian access providing connections between urban neighborhoods like Oakwood and Glenwood South.

Moore Square: More than any other catalytic project area, this one focuses on large public investment in the park and transit center renovation, along with redevelopment of key, publicly owned parcels near the square to help revitalize this historic district.

Nash Square-Raleigh Union Station: A renovation of Nash Square, improved streetscaping and programming for the Hargett and Martin street corridors toward more pedestrian and retailoriented uses, and connecting Raleigh Union Station to the rest of downtown are all a part of this project area’s vision.

INTRODUCTION TO DOWNTOWN | 19

© Flyboy Photography

© Flyboy Photography

© Stacey Simeone

© Flyboy Photography

© Carolyn Scott

© Flyboy Photography

DOWNTOWN DISTRICTS WAREHOUSE DISTRICT

FAYETTEVILLE STREET

Characterized by its red brick warehouses, the Warehouse District has transformed into a vibrant mix of art museums, restaurants, destination retail, technology firms, and will soon add transit-oriented development to the mix with the opening of Raleigh Union Station and The Dillon, a mixed use tower and residential development.

• Home to Citrix, HQ Raleigh, and new projects such as The Dillon, Raleigh Union Station, and Morgan Street Food Hall • Over 10 restaurants, 11 stores, six art galleries and 81,000 square feet of retail space under construction

Home to the civic spine of the city and state with the iconic Fayetteville Street, this district has something for everyone. Skyscrapers of Class A office space and condos are mixed with award winning restaurants, a major performing arts center, large outdoor event space and amphitheater, independent retailers, galleries, the convention center, and exciting nightlife. This district has also added unique boutiques and a wide array of restaurants over the past few years.

• 55 restaurants and bars plus 16 retailers • Address of the four tallest buildings in Raleigh and six of the top 10 overall

GLENWOOD SOUTH

MOORE SQUARE

One of downtown’s signature streets anchors this eclectic mix of restaurants, art galleries, stores, nightlife, and residences. New restaurants blend in with established favorites, while the exploding population of young workers find plenty to do in the active bar scene, which includes the world record holding Raleigh Beer Garden. With over 1,300 units under construction or recently delivered and more on the way, Glenwood South will build on its existing residential base to become one of downtown’s most distinctive neighborhoods.

• 1,600+ new residential units recently delivered, under construction, or planned • 30+ dining establishments • 30+ retailers

Moore Square is primed to change dramatically with major public investment helping stimulate large private development. The park is undergoing a $12 million renovation and will reopen in early 2019, while the nearby GoRaleigh Transit Center, the central hub for Raleigh’s bus system, finished a $9 million renovation. Meanwhile, new residential developments such as SkyHouse, Edison, and The Lincoln help make this district one of the densest neighborhoods in Raleigh. There are plenty of entertainment options like Marbles Kids Museum and live music venues like The Lincoln Theatre and Pour House Music Hall.

• 777 units opened in 2015 and 2016 • Over $20 million in public investment since 2016

CAPITAL DISTRICT

SEABOARD/PERSON STREET

The Capital District is the power center of North Carolina and home to some of the state’s biggest tourist attractions. With the State Capitol, Legislative Building, Governor’s Mansion, and 3.5 million square feet of government office space, many of the most important decisions in the state are made in this district. The Capital District is also home to the NC History Museum and NC Museum of Natural Sciences, which attracted a combined 1.5+ million visitors last year, more than any other attractions in the state.

• 276 new residential units delivered in past three years • 1.5+ million visitors

Containing the commercial centers of Seaboard Station and Person Street Plaza, the northern end of downtown has a neighborhood feel with locally owned businesses such as bakeries, clothing boutiques, hardware and garden stores, and some of downtown’s best restaurants. Nearby residential developments like Blount Street Commons, Elan City Center Apartments, and Peace Street Townes are bringing more residents to this area. This residential boost increases the demand for retail and services, along with better connectivity to the rest of downtown.

• Over 15 retail stores and services • 10+ dining establishments INTRODUCTION TO DOWNTOWN | 21

LIVING

“I enjoy living in downtown Raleigh because the best of our city is at your fingertips. Whether it’s nationally lauded restaurants, entertainment venues, or local shopping destinations, there’s something for everyone.”

- BRANDON YOPP, DOWNTOWN RESIDENT

Downtown boasts 3,425 residential units recently delivered, under construction, or planned with 1,803 units completed since the start of 2015, 1,069 units under construction, and 553 units planned.

$$

95%

OCCUPANCY RATE for all multi-family properties in downtown¹

8,500 RESIDENTS live in downtown2

Average asking rent: $1,444/ month for multi-family unit in downtown¹

35% INCREASE in residents since 20152

3 MILLION SQUARE FEET of residential units delivered or under construction

5,472 HOUSING UNITS in downtown2

93% 16,900+ residents live within one mile of the center of downtown2

1Integra Realty Resources 2U.S. Census

INCREASE in the number of housing units in downtown2

LIVING | 23

ON THE MAP | NEW RESIDENTIAL PROJECTS UNDER CONSTRUCTION, RECENTLY DELIVERED, OR PLANNED

440

1

PERSON ST

RDU AIRPORT

70

CAPITAL BLVD

GLENWOOD AVE

440

40

401

SEABOARD/PERSON STREET DISTRICT

WILLIAM PEACE UNIVERSITY

PEACE ST

BOUNDARY ST

8

20

18 JOHNSON ST

9

PELL ST

EUCLID ST

11 POLK ST

TUCKER ST

27

1

17

3 JONES ST

BLOUNT ST

BOYLAN AVE

LANE ST

SALISBURY ST

LANE ST

MCDOWELL ST

21

OAKWOOD AVE

NORTH ST

DAWSON ST

ST MARY’S ST

2 NORTH ST

JONES ST

CAMPBELL SCHOOL OF LAW

25 23

EDENTON ST 440

HILLSBOROUGH ST

440

NEW BERN AVE STATE CAPITOL BUILDING

NASH SQUARE

GORALEIGH STATION

PERSON ST

12

7

DAVIE ST

4 WEST ST

LENOIR ST

LEGEND

WE

STE R

LVD

440

40

70

T YS UR

ISB

NB

WILMINGTON ST

26

DUKE ENERGY CENTER FOR PERFORMING ARTS

L SA

Proposed

19

SOUTH ST

SAUNDERS ST

Under Construction

10

14

Status Complete

CABARRUS ST

22

SHAW UNIVERSITY

MARTIN LUTHER KING JR BLVD

CHAVIS WAY

BLOODWORTH ST

6

RALEIGH CONVENTION CENTER

HARGETT ST

5

MOORE SQUARE

MARTIN ST

24

13

EAST ST

HARRINGTON ST

FUTURE SITE OF UNION STATION

FAYETTEVILLE ST

WEST ST

HARGETT ST

64

MORGAN ST

16

15

RESIDENTIAL UNITS | UNDER CONSTRUCTION, COMPLETED, AND PLANNED DEVELOPMENT BY DISTRICT SINCE 2015 DEVELOPMENT NAME

ADDRESS

STATUS

UNITS

1

FOUR25 DEVON

425 Boylan Ave

Complete

261

2

THE GRAMERCY

401 Glenwood Ave

Complete

203

3

LINK APARTMENTS

202 N West St

Complete

203

4

THE L

205 W Davie St

Complete

83

5

THE LINCOLN

408 E Hargett St

Complete

224

6

SKYHOUSE

308 S Blount St

Complete

320

7

EDISON LOFTS

131 E Davie St

Complete

223

8

PEACE STREET TOWNES

206 E Peace St

Complete

17

9

ELAN CITY CENTER

510 N Wilmington St

Complete

213

10

THE TEN AT SOUTH PERSON

520 S Person St

Complete

10

11

BLOUNT STREET COMMONS

520 John Haywood Lane

Complete

46

12

THE DILLON

W Hargett at Harrington St

Under Construction

260

13

HARGETT PLACE

E Hargett St at Bloodworth St

Under Construction

19

14

WEST + LENOIR TOWNHOMES

501 W Lenoir St

Under Construction

12

15

10 ARROS

537 New Bern Ave

Under Construction

10

16

THE WARE

500 E Davie St

Under Construction

15

17

THE METROPOLITAN

314 W Jones St

Under Construction

241

18

REVISN*

615 N Boylan Ave

Under Construction

48

19

611 WEST SOUTH

611 W South St

Under Construction

42

20

PEACE

600 N West St

Under Construction

417

21

THE SAINT

216 St Mary’s St

Under Construction

17

22

FNB TOWER

501 Fayetteville St

Proposed

239

23

400H

400 Hillsborough St

Proposed

216

24

THE FAIRWEATHER

525 S West St

Proposed

45

25

THE WILLARD

21 Glenwood Ave

Proposed

25

26

FOURTH WARD

722 S Saunders

Proposed

10

27

ST MARY’S SUBDIVISION

416 St Mary’s St

Proposed

6

TOTAL

*Recently announced as extended stay units

3,425

LIVING | 25

POPULATION GROWTH | DOWNTOWN HOUSING AND POPULATION GROWTH

Downtown Raleigh already has doubled the number of housing units since 2000 and is poised to triple the number of units by 2020, if the current pipeline of residential projects is built out. Presently, downtown has an estimated 5,472 units and will have approximately 7,600 units within the next five years.

12,000 10,000 8,000

6,000 4,000 2,000

0 2000

2010

Housing Units

2015

2018

2022

Population

Source: U.S. Census, ESRI Business Analyst

NEW, UNDER CONSTRUCTION, AND PLANNED HOUSING UNITS IN PEER DOWNTOWNS Downtown Raleigh is keeping pace with the residential boom in other rapidly growing peer downtowns across the country.

12,000 10,000 8,000

6,000 4,000

2,000

0

n w to ta id lan M t A

lle

N

i hv as

in st Au

t

Pi

gh ur

b ts

e tt

lo

C

r ha

gh

ei

l Ra

H

,O

l Co

um

s bu

rm

Bi

am

gh

in

is ph em M

m

ha

r Du

lle

i sv

ui Lo

Sources: Midtown Alliance, Charlotte Center City Partners, Downtown Durham Inc, Pittsburgh Downtown Partnership, Venture Richmond, Downtown Cleveland Alliance, Downtown Austin Alliance, Downtown Orlando Redevelopment Board, Birmingham Business News, Nashville Downtown Partnership, Downtown Phoenix Inc., Downtown Memphis Commission

POPULATION GROWTH

RESIDENTIAL UNITS RECENTLY DELIVERED, UNDER CONSTRUCTION OR PLANNED BY DISTRICT

An estimated 16,971 people live within one mile of the center of downtown, which will grow to nearly 20,000 within the next four years.

Glenwood South leads all downtown districts in new residential growth with half of all new units being in that district. Moore Square also has seen significant growth with the Warehouse District adding several new townhome and condo communities in the near future.

Within 1 Mile

CBD

20,000

Fayetteville Street

Capital 8%

9% 15,000

Warehouse 11%

10,000

Glenwood South

Moore Square

48%

24%

5,000

0 2000

2010

2014

2018

2022 (Projected)

Source: U.S. Census, ESRI Business Analyst

Source: DRA

AGE | A YOUNG DOWNTOWN 36% of downtown residents are between the ages of 25-44 compared to 28% for the Raleigh metropolitan area and 26% nationally.

30%

25%

20%

15%

10%

5%

0% Under 19

20-24

25-34 Downtown

Source: U.S. Census, American Community Survey

35-44 Raleigh MSA

45-54

55-64

65+

US

LIVING | 27

APARTMENT MARKET

$1,444

average per month in rent overall for downtown

$1,519

average per month for Class A properties in downtown

$1.71

median rent per square foot for all multi-family properties in downtown

$1.83

median rent per square foot for Class A multi-family properties in downtown

95.3%

occupancy overall for multi-family properties in downtown

95.1% Š Flyboy Photography

occupancy for Class A properties

95.25%

occupancy for all properties opened since 2015, illustrating rapid absorption for 1,803 units.

Source: Integra Realty Resources

RENT | DOWNTOWN MULTIFAMILY AVERAGE RENT 2015-2018 Average rent in downtown grew 9% in the past year as a major influx of supply from 2015-2016 was absorbed and few new units entered the market. Rent for Class A units also saw a 9% increase in the past year.

Average Rent 2015

$1,600 $1,519

$1,400

$1,425 $1,432

$1,444

$1,389 $1,265

$1,200 $1,000 $990

$800

$851

Average Rent 2016

$1,344 $1,325

Average Rent 2017

$991

Average Rent 2018

$894 Source: Integra Realty Resources

$600 $400 $200 $0 Downtown Class A MSD

Greater Downtown Class B + C

Downtown Overall Rent

AFFORDABLE OPTIONS REMAIN IN DEMAND Low vacancy and rising rent indicate a strong demand for affordable options in and near downtown. With little existing supply in downtown built before 2000 and a rapidly increasing population in the city and region, most of the older apartments that may decline in value due to new supply will not likely be in the CBD. • 96.4% occupancy for Class B and C apartments, slight decrease from 2017 • 16% growth in rent for Class B and C units since 2015, though, flat in 2017

AFFORDABLE DOWNTOWN RELATIVE TO PEERS NATIONALLY Downtown Raleigh has a lower median apartment rent per square foot than several peer CBDs. Downtowns like Austin and Nashville, along with more established CBDs, have median rents well above $2.00 per square foot.

MEDIAN RENT PER SQUARE FOOT AMONG PEER DOWNTOWNS $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $.50 $0

is

ph

em

M

um

l Co

a,

bi

Source: RentHub-Kwelia

d

SC R

on

m

h ic

h

ig

le

Ra

o

nd

rla

O

e Gr

C

,S lle

vi en

e tt

rlo

a Ch

lle

i hv

s Na

n w to id M

a nt

la At

s

lla

Da

n o ia in DC to st isc ph os el on nc Au t B d a ng Fr ila hi n Ph as Sa W

LIVING | 29

© Flyboy Photograhy

OFFICE, INNOVATION, EMPLOYMENT & TALENT Downtown Raleigh is attracting new companies, tech incubators, Class A office projects, ultra-fast internet service, and is home to an increasingly talented workforce.

OFFICE MARKET Downtown Raleigh’s office market is booming as new supply is built to respond to very low vacancy rates and strong interest in companies moving into downtown over the past few years. On Fayetteville Street alone, 540,000+ square feet of new or renovated Class A office space is either soon to be under construction at FNB Tower and 208 Fayetteville or recently delivered at Charter Square, One City Plaza, 227 Fayetteville, 107 Fayetteville, and 224 Fayetteville.

Downtown Raleigh is the densest office market in the Triangle with more office space and employees per acre than any other submarket.

94.7% 1,000,000+ SQUARE FEET of Class A space recently delivered, under construction, or planned

589,854 SQUARE FEET Class A office space under construction or soon to begin construction

6.6% INCREASE in rental rates in 2017

OCCUPANCY RATE—HIGHEST YEAR-END

442%

OCCUPANCY RATE IN OVER

236,920 SQUARE FEET net absorption of office space in 20172

¹JLL 2Triangle Business Journal

221,000 SQUARE FEET of co-working space under construction or delivered since 2016

INCREASE in co-working space from 2015-2019

A DECADE1 OFFICE, INNOVATION, EMPLOYMENT & TALENT | 31

FLOW CHART | TALENTED WORKFORCE LEADS TO STRONG NEED FOR OFFICE SPACE IN RALEIGH

Educated and Talented Workforce

New Companies Starting and Relocating in Raleigh

Increasing Demand for New Office Space

YEAR END OCCUPANCY AT HIGHEST POINT SINCE 20011 95

90

85

80 75 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

UPCOMING AND RECENT OFFICE PROJECTS Over 589,000 square feet of new Class A office space being delivered in 2018 and 2019 One Glenwood

FNB Tower • 219,000 sf with 14,500 sf retail • 10 stories •L ocated between Glenwood South and Warehouse District • Delivers in 2018

The Edison

• 157,000 sf office/retail • Class A office space with ground floor retail • 22 stories • 239 residential units • Begins construction in 2018 HQ Raleigh expansion

•2 93,000 sf • 1 0,000 sf of retail • 20 stories • Planned

The Dillon

• 31,000 sf expansion in Glenwood South in 2017 • Complements additional 15,000 sf expansion in Capital Club Building in 2017 • Added 46,000 sf of new incubator space to existing 20,000 sf 400H

•2 10,000 sf Class A office space •5 2,000 sf of retail and 260 apartment units •T ower built within footprint of existing warehouse • Delivers 2018

¹Triangle Business Journal, JLL, Colliers, Avison Young

• • • •

144,000 sf Class A office space 216 residential units Ground floor retail space Planned

NATIONAL CLASS A AND OVERALL AVERAGE OFFICE RENT PER SQUARE FOOT IN CBDs Downtown Raleigh has a competitively priced CBD with high enough rates to encourage new office development, but lower rates than several peer downtowns on the east coast and in other parts of the U.S. Class A Rate Only

Overall Rate

San Francisco Washington DC Boston Austin Houston Philadelphia Charlotte Nashville Atlanta Raleigh Orlando Richmond Columbia $0

$10

$20

$30

$40

$60

$50

$70

$80

Sources: Colliers, JLL

LOCAL CLASS A AND OVERALL AVERAGE RENT PER SQUARE FOOT Strong and increasing demand from the technology and innovation sector keep Class A rental rates higher in downtown Raleigh relative to many other submarkets in the Triangle, while new supply has kept rates from rising rapidly in recent years.

Class A Rate Only

Overall Rate

$32

$24

$16

$8

$0

US-1/Capital Blvd

I-40/ RTP

Cary

Sources: Colliers, JLL, CBRE, Avison Young 4Q 2017

Glenwood/ Creedmoor

Whole Region

West Raleigh

Six Forks

Downtown Durham

Chapel Hill

Downtown Raleigh

OFFICE, INNOVATION, EMPLOYMENT & TALENT | 33

ALBEMARLE BUILDING • 2018 Imprint Award Winner •R enovation of 192,370 SF of state government office space • I ncluded new building systems, finishes, wiring, open floor plans, ADA and energy improvements

© Flyboy Photograhy

• $42 million

2018-2030 PROJECTED EMPLOYMENT GROWTH Downtown is home to over 47,000 employees across all sectors and is projected to add 9,500 office and service employees between 2018 and 2030, according to estimates from HR&A and CAMPO. With potential new investments that make downtown even more attractive, such as mass transit, downtown’s employment growth could exceed these projections.

DOWNTOWN WORKERS | LARGEST EMPLOYERS

EMPLOYER

STATE OF NORTH CAROLINA DUKE ENERGY WAKE COUNTY GOVERNMENT

60,000

9,500

50,000

CITY OF RALEIGH RED HAT, INC.

40,000

CITRIX

30,000

47,000

20,000

PNC BANK MCCLATCHY/NEWS AND OBSERVER

10,000

EMPIRE EATS/EMPIRE PROPERTIES

0 2018

2030 Growth

Sources: HR&A Advisors, U.S. Census Bureau, DRA

SHAW UNIVERSITY

EMPLOYMENT | MORE EMPLOYEES PER ACRE THAN ANY OTHER OFFICE SUBMARKET IN THE TRIANGLE

77

employees per acre in downtown core: more than any other office submarket in the Triangle

850+

21%

47,000

growth in employees in this decade

businesses located downtown

employees

AVERAGE EMPLOYEES PER ACRE 80 70 60 50 40 30 20 10 0 Downtown Raleigh

Downtown Durham

North Hills

RTP Area

Raleigh (city)

Sources: ESRI Business Analyst, DDI, Research Triangle Park, US Census Bureau: Center for Economic Studies. Measured office cores of each submarket in 2017.

RECENT MOVES AND EXPANSIONS IN DOWNTOWN

PENDO

DROPSOURCE

CLOUDGENIX

SHANAHAN MCDOUGAL

FMI CORPORATION

EGNYTE

FILTEREASY

REVGEN

WEWORK

PERSONIFY

HQ RALEIGH

MOMENTUM LEARNING INC

LOGMEIN

BDO USA

SPACES

RAPID SCALE

U.S. ATTORNEY’S OFFICE

WALKME

STEWART ENGINEERING

SEPI ENGINEERING OFFICE, INNOVATION, EMPLOYMENT & TALENT | 35

© Flyboy Photograhy

COMPARED TO THE U.S. WORKFORCE AS A WHOLE, THE RALEIGH METROPOLITAN AREA HAS:

96%

higher share of employees in computer and mathematical occupations

40%

higher share of employees in architecture and engineering occupations

156%

higher share of software and app developers

Source: U.S. Bureau of Labor Statistics “May 2016 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates”

105%

higher share of civil engineers

DOWNTOWN EMPLOYMENT BY SECTOR

STEM EMPLOYMENT HUB

Downtown Raleigh still has a strong government sector anchoring its workforce, though, growth in private firms, particularly tech companies, is changing that dynamic and making downtown’s workforce more diverse by sector.

9% 2% 2%

Raleigh had the second highest percent growth in tech jobs for any city in the U.S. from 20102015 with 38% growth and was ranked by Forbes as #2 Hottest Spot for Tech Jobs.

#2

3% 3% 4% 43%

HOTTEST SPOT FOR TECH JOBS—FORBES

5%

#2

6%

10%

BEST PLACE FOR BUSINESS AND CAREERS—FORBES

13%

Government

Professional, Scientific & Tech Services

Accommodation & Food Services

Utilities

Other Services

Information

Health Care & Social Assistance

Admin, Support, Waste Management

Finance & Insurance

Educational Services

Misc.

Source: ESRI Business Analyst, U.S. Census, Dun & Bradstreet

INCUBATORS AND INNOVATION Downtown Raleigh: center for collaboration, innovation, dense ecosystem of rapidly growing companies.

EXPANSIONS AND GROWTH: • 550+ startup companies, totaling 2,500+ jobs1 • $255 million angel and venture capital raised by Raleigh companies since 20161 • $20 billion total exits/acquisitions of companies in Raleigh since 2015 • $1.1 billion from IPOs generated by Raleigh companies since 2012 •2 ,250 tech employees added to downtown by Red Hat, Citrix, and Ipreo in the past six years • Rapidly growing downtown tech companies like BitSight, Pendo, LogMeIn, WalkMe, Personify, FilterEasy, and Spectraforce are all in expansion mode ¹City of Raleigh Economic Development

#2 AREA WITH THE HIGHEST NUMBER OF TECH JOBS— NEW YORK TIMES

#3 BEST CITY FOR JOB SEEKERS IN 2017—INDEED

#4 HIGHEST % OF WORKFORCE IN STEM—WALLETHUB

#4 CITY WITH FASTEST GROWING INCOMES—SMARTASSET OFFICE, INNOVATION, EMPLOYMENT & TALENT | 37

© Flyboy Photograhy

CO-WORKING SPACE

244,100 99,600 Square feet of existing and under construction co-working space in downtown

Square feet of co-working space delivered 2016 and 2017

442% Increase in co-working space from 2015-2019

START-UP SPOTLIGHT

“Downtown Raleigh is an energetic, thriving area. Great restaurants, great entrepreneurial community, and a lot of talent. When hosting customers and partners, and when recruiting new team members, being located near Glenwood South is a huge benefit. There’s a reason people are relocating in droves to the area, and Raleigh keeps making all of the national awesomeness lists - and we’re proud to be part of that.

- KARL RECTANUS, CO-FOUNDER AND CEO

Lea(R)n is a B Corp team of educators, researchers, and technologists committed to equitable access to education that works for teachers and students. Lea(R)n developed LearnPlatform—the first and only comprehensive edtech management system. LearnPlatform equips administrators to organize, streamline, and analyze all facets of the education technology so they can make informed instructional, operational, and financial decisions; meet and maintain federal and state compliance reporting requirements; and measure impact. Lea(R)n has doubled in size every year since its inception in 2014 and recently attracted major investors during a round of series A funding.

ON THE MAP | DOWNTOWN CO-WORKING SPACES E FRANKLIN ST

PACE ST

HALIFAX ST

SEMART DR

SEABOARD AVE

State Government Complex

WILMINGTON ST

HQ Raleigh @ Centerline 31,000 SF

WeWork 82,000 SF

Dream Sprout 4,000 SF Spaces 35,000 SF

HQ Raleigh @ Capital Club 15,000 SF

BLDG Co. 2,500 SF

The Assembly 3,000 SF

KIN

Thinkhouse 5,000 SF

YS

T

KINSEY ST

SE

The Nest 12,600 SF

HQ Raleigh @ Harrington St 20,000 SF Shaw Innovation & Entrepreneurship Center 2,000 SF

LEGEND

Industrious 32,000 SF

Status Complete Under Construction

Source: City of Raleigh Office of Economic Development

OFFICE, INNOVATION, EMPLOYMENT & TALENT | 39

© Courtesy of NC State University

$2.5 BILLION IN COMBINED RESEARCH AND DEVELOPMENT EXPENDITURES IN 2014 BY DUKE, UNC, AND N.C. STATE3

TALENT One of the major reasons for downtown’s rising profile as a tech hub and site for new office development is its strong talent and employment base. Raleigh’s universities and colleges, along with other major research universities and higher education institutions in the region, help drive more jobs and companies to downtown.

NORTH CAROLINA STATE UNIVERSITY: •5 th in Best Value Among Public Universities¹ • 5th in Computer Engineering Degrees Awarded² • 9th Among all U.S. Engineering College in Number of B.S. Degrees Awarded² SHAW UNIVERSITY: • Opened Innovation and Entrepreneurship Center in downtown Raleigh •F irst historically Black institution of higher education in the south and among the oldest in the nation

CAMPBELL UNIVERSITY SCHOOL OF LAW SCHOOL: •O pened Community Law Clinic in 2016 in downtown for free legal help for those referred by area nonprofits

MEREDITH COLLEGE: • Top 25% of Liberal Arts Colleges by High School Counselors1 Approximately 100,000 STUDENTS attend Triangle universities, providing cutting edge research and a well-trained workforce. In addition to the strong academic institutions near downtown, the region boasts several other prestigious universities:

WILLIAM PEACE UNIVERSITY: • #1 nationally for student internships1

UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL: •# 5 Top Public University in the nation1

DUKE UNIVERSITY: ST. AUGUSTINE’S UNIVERSITY: •R anked in Top 50 Historically Black Colleges and Universities1

• #8 Overall Top University in the nation1

N.C. CENTRAL UNIVERSITY: •# 12 Top Historically Black Colleges and Universities1

¹U.S. News and World Report ²American Association of Engineering Education 3National Science Foundation

Only the Triangle, Atlanta, Boston, NYC, Los Angeles, Washington D.C., and Chicago have three Tier-1 Research Universities in one metropolitan region with NC State, UNC, and Duke located here.

HIGHER EDUCATION INSTITUTIONS (within three miles of downtown)

TOTAL ENROLLMENT

NORTH CAROLINA STATE UNIVERSITY

33,755

MEREDITH COLLEGE

1,981

SHAW UNIVERSITY

1,546

WILLIAM PEACE UNIVERSITY

1,076

SAINT AUGUSTINE’S UNIVERSITY

1,064

CAMPBELL UNIVERSITY SCHOOL OF LAW

426

NUMBER OF STEM GRADUATES AS A SHARE OF POPULATION (AGES 20-34) The Raleigh metropolitan statistical area (MSA) also has a much larger share of STEM graduates as a portion of its young adult population than the United States or any other region in the country.

40% 35%

Raleigh

30% 25% 20% 15%

U.S.

10% 5%

TOTAL

39,848

0% Source: Brookings Institution, Burning Glass

Downtown has a higher share of residents with bachelor and graduate degrees than the state and national proportions.

Forty-seven percent of downtown Raleigh residents 25 years and older have a bachelor’s degree or higher, compared to 30% of North Carolinians, and 31% of Americans.

EDUCATIONAL ATTTAINMENT FOR POPULATION 25+ YEARS Less than 9th Grade

100% 80%

47.6%

30%

31%

9-12th Grade/No Diploma High School Diploma/GED Some College/No Degree

60%

Associate’s Degree 40%

Bachelors/Graduate Degrees

20% 0% Downtown Raleigh Sources: ESRI Business Analyst, U.S. Census

North Carolina

United States OFFICE, INNOVATION, EMPLOYMENT & TALENT | 41

© Flyboy Photography

GORALEIGH STATION • 2018 Imprint Award Winner • $9.9 million renovation •A dded new lighting, display screens, awnings, bathrooms, signage, plaza area, and new entrances

CONNECTIVITY & SUSTAINABILITY Downtown Raleigh continues to see major new investments as the region’s hub for transportation, walkability, and greenspace. Downtown is the most walkable part of the Triangle, becoming a leader nationally in downtown greenspace, adding new transit investments, and home to energy efficient buildings as well as a strong local food and urban farm movement.

BICYCLE 300 BikeShare bicycles and 30 BikeShare Stations available in 2018

PEDESTRIAN

AIR

96: High walk score

RDU International Airport: 11.6 million passengers with a 13.7% growth over past two years

in downtown, highest walk score in entire region. Most walkable part of Triangle

TRANSIT

AUTOMOBILE

20 miles of Bus Rapid Transit planned 30+ Bus Routes connecting downtown to the rest of the city and region

10 major arterial streets 33% below market rate nationally for downtown parking costs

RAIL $88 million Raleigh Union Station opening in 2018 and 37 Miles of Commuter Rail planned

CONNECTIVITY & SUSTAINABILITY | 43

© Flyboy Photography

TRANSIT

WAKE TRANSIT PLAN

HUB FOR NEW AND IMPROVED MASS TRANSIT

Bus Rapid Transit (BRT): 20 miles of BRT planned with downtown serving as a central hub

Commuter Rail Transit: 37 miles of service planned on existing tracks to connect downtown with Garner, Cary, Morrisville, RTP, NC State, and Durham

More Enhanced Local and Express Bus Service: Improved bus connections to other municipalities, and increased frequencies on high demand routes

$88 million multi-modal center, Raleigh Union Station, under construction in a former warehouse, opens mid-2018

NEBRASKA ILLINOIS

COLORADO KANSAS

INDIANA

OHIO WEST VIRGINIA

VIRGINIA

MISSOURI KENTUCKY NORTH CAROLINA TENNESSEE

OKLAHOMA

SOUTH CAROLINA

ARKANSAS

30+ BUS ROUTES

GEORGIA

CONNECTING

ALABAMA

TEXAS

MISSISSIPPI

DOWNTOWN TO THE

LOUISIANA

FLORIDA

REST OF THE CITY AND REGION THROUGH

Top Five Highest Amtrak Ridership in South. Passenger train service to other cities in the state, region, and country with passengers boarding and alighting topping cities like Denver, Dallas, Houston, Orlando, Tampa, Atlanta, Austin, Pittsburgh, Cleveland, and Miami.1

1Amtrak ²GoRaleigh and GoTriangle

THE GORALEIGH AND GOTRIANGLE SYSTEMS²

CONNECTIVITY & SUSTAINABILITY | 45

10% of downtown residents walk to work versus 1.3% regionally³

BIKING AND WALKING MILES OF ON-STREET BICYCLE LANES IN THE CITY OF RALEIGH 60

45

30

15

172 bike racks with room for 601 bicycles¹

0 2015

2016

2017

2018

Source: City of Raleigh Department of Transportation

HIGHEST WALK SCORE Downtown Raleigh has the highest walk score in the region with a high score of 96 in the downtown core, while other downtowns in the region experience similar walkability and access to a large number of amenities and transportation options. The city is continuing improvements in ADA compliant curb ramps and pedestrian signals throughout downtown.²

Bike Share launches mid 2018 with 30 stations and 300 bicycles

DOWNTOWN DURHAM High Walk Score: 94

DOWNTOWN RALEIGH High Walk Score: 96

DOWNTOWN CHAPEL HILL High Walk Score: 90

170 miles of greenway and on-road bike facilities throughout Raleigh¹

AVERAGE OF TRIANGLE CITIES

25

¹City of Raleigh ²walkscore.com. Cites highest recorded walk score in each downtown and based on Walk Score’s criteria of walkability and access. ³U.S. Census

DRIVING AND PARKING

FLYING

CONVERSION TO TWO-WAY STREETS: Several streets in downtown are being converted from one-way to two-way traffic, which reduces confusion, increases pedestrian safety, and improves visibility and access for storefront businesses. Blount and Person Streets will begin conversion in the near future.

40 non-stop destinations, now including Paris, as well as London, San Francisco, Los Angeles, Miami, Atlanta, Chicago, New York, Seattle, Washington, and many other cities²

30,000 estimated parking spaces in downtown

10 major arterial streets connect downtown to the rest of Raleigh

I-40 runs just south of downtown 400 flights daily at RDU International Airport²

$36.9 INVESTMENT

by the North Carolina DOT to redesign and improve the northern gateway to downtown with the replacements of bridges and interchanges along Capital Boulevard at Peace Street and Wade Avenue

Monthly parking rate is 33% below the U.S. national average for downtowns, according to a 2018 report1

20 Located just 20 minutes from downtown and accessible via express bus²

COMMUTE OF 20 MINUTES OR FEWER | DOWNTOWN RESIDENTS HAVE SHORTER COMMUTES3 60%

11.6 million passengers: Most Passengers Ever at RDU International Airport² 45%

30%

15%

Lowest average airfare among large airports in North Carolina²

0% Downtown Raleigh

Raleigh Metro

¹Parking Property Advisors, March 2018 ²Raleigh-Durham Airport Authority 3U.S. Census

CONNECTIVITY & SUSTAINABILITY | 47

ON THE MAP | GREEN AND CIVIC SPACE NETWORK

HALIFAX COMMUNITY CENTER & PARK

FRED FLETCHER PARK

FUTURE DEVEREUX MEADOWS

MORDECAI HISTORIC PARK

RALEIGH CITY FARM WILLIAM PEACE UNIVERSITY

OAKWOOD CEMETERY HALIFAX MALL

NC MUSEUM OF NATURAL SCIENCES PULLEN PARK

NC MUSEUM OF HISTORY

STATE CAPITOL

NASH SQUARE

MARBLES KIDS MUSEUM

MARKET & EXCHANGE PLAZAS

CITY CEMETERY

MOORE SQUARE

CAM

DIX PARK

RED HAT AMPHITHEATER

LENOIR ST PARK

CITY PLAZA

DUKE ENERGY CENTER FOR THE PERFORMING ARTS SHAW UNIVERSITY

Green Space

Plaza

Greenway or On-street Bicycle Link

Source: City of Raleigh

Campus

Creek

Museum or other Civic Building

CHAVIS PARK

PARKS AND GREENSPACE Downtown Raleigh has a strong system of parks and greenspace, which is being enhanced with renovations and new parks in the near future. The downtown area’s park space includes historic squares, an expansive mall, recreation fields, and a greenway with a new destination park on the way.

322 ACRES

100+ ACRES

10 PARKS

112 MILES

of new parkland being added in the downtown area with Dix Park and Devereux Meadows1

of existing public park space within one mile of downtown1

within one mile of downtown1

of greenway and 58 miles of bike lanes in Raleigh1

LEADER IN CENTRAL CITY GREENSPACE ACRES OF GREENSPACE WITHIN TWO MILES OF THE CENTER OF DOWNTOWN 1,200 1,000 800

600 400 200 0

s

lla

Da

in st Au

h

ig

le

Ra

lis

po

M

in

a ne

s

bu

m

lu Co

o

nd

O

rla

il

Ph

a

hi

lp

e ad

a

nt

la At

lis

po

In

di

a an

lle

i hv

s Na

e tt

lo

r ha

C

on st

u Ho

le

t at

Se

Note: Methodology used municipal GIS data in each city to measure acres of greenspace within two miles of the center of each respective downtown.

The future of downtown’s greenspace is bright with projects already underway and more planned in the Downtown 2025 Experience plan: •D ix Park: The City of Raleigh purchased 308 acres of the former Dorothea Dix psychiatric hospital campus from the State of North Carolina. The campus, located on the southern end of downtown, will provide the city and downtown with a destination park and sweeping views of downtown’s skyline. World-renowned design consultant Michael Van Valkenburgh and Associates is overseeing the multi-year master planning process now underway.

•D evereux Meadows: A future 14-acre park, planned for a flood basin on the northern end of downtown, will provide much-needed greenspace near the growing Glenwood South district.

•M oore Square renovation: A $12.6 million renovation of one of Raleigh’s original, historic squares will provide a worldclass public space for downtown. Construction began in 2017 and is expected to finish in 2019.

•C havis Park renovation: Located just east of downtown, this 28-acre park, featuring a carousel, swimming pool, nature trail, and athletic field, will receive a $12.5 million renovation. ¹City of Raleigh

CONNECTIVITY & SUSTAINABILITY | 49

ON THE MAP | MAJOR DOWNTOWN INFRASTRUCTURE INVESTMENTS

In addition to upcoming transit investments, Downtown Raleigh is seeing major investments in transportation infrastructure including two new transportation stations, reconfiguration of a major interchange, bike share, conversion of one-way streets, extension of a street underneath a rail line, bike lanes, and streetscaping.

E FRANKLIN ST

PACE ST

LEGEND Proposed Bike Share Locations

Government Complex

Station Projects

WILMINGTON ST

HALIFAX ST

SEMART DR

SEABOARD AVE

Complete Projects Wilmington-Salisbury Street Bike Lanes Lenoir-South Two Way Conversion

Under Construction Projects Capital Blvd Bridge Replacements

Planned Projects Blount-Person Two Way Converstion Peace Street Streetscape S. West Street Extension Rosengarten Greenway Jones-Lane Two Way Converstion West Street Cycle Track Pilot

UNION STATION PHASE 2 (Planned)

UNION STATION

KIN

YS

T

KINSEY ST

SE

Source: City of Raleigh, NC Department of Transportation

GORALEIGH STATION

© Flyboy Photography

ENERGY • LEED certification: At least 10 buildings in downtown have been constructed or renovated to LEED standards, such as the Citrix building which received LEED Gold certification and Charter Square, which is LEED Platinum. Others include Raleigh Convention Center, Green Square, Red Hat Tower, and the Wake County Justice Center. These buildings are more environmentally friendly and energy efficient.1 •S olar: Raleigh is becoming a leader in solar panel installation and was recently ranked one of the top 20 solar cities in the country based on capacity and installation.2 •C harging Stations: Downtown Raleigh is a leader in electric vehicle infrastructure with 11 public charging stations located throughout downtown, which offsets CO² emissions and reduces gasoline use.

EMERGING LOCAL FOOD AND URBAN FARM MOVEMENT

© Flyboy Photography

© Carolyn Scott

© Stuart Jones

New farm movements connect downtown residents to the land, providing better health and a positive economic impact.

RALEIGH CITY FARM

THREE FARMERS MARKETS: located throughout downtown

INNOVATIVE COMMUNITY INITIATIVES: The Raleigh Food Corridor Second Saturday

1U.S. Green Building Council 2Environment North Carolina, “Shining Cities: At the Forefront of America’s Solar Energy Revolution,” April 2014.

EDUCATIONAL GARDENS at Marbles Kids Museum and Moore Square Magnet Middle School CONNECTIVITY & SUSTAINABILITY | 51

© Stacey Simeone

READ WITH ME • Storefront Imprint Award Winner - Meritorious • Children’s bookstore opened in 2017 • One of 11 retail stores to receive a retail grant from DRA

SHOPPING “I chose to open a business in downtown Raleigh because I’ve always loved the vibe of downtown.

DTR is a vibrant, friendly, and diverse community. It’s busy and familiar. There is a healthy mix of new and growing retail as well as several established businesses. I feel that opening a business downtown is a worthwhile investment.” –CHRISTINE BRENNER, READ WITH ME

46 % GROWTH

Growth in its retail base since 2010, largest growth in any storefront use for downtown¹

40

New stores opened in downtown since 2014¹

94% of stores in downtown Raleigh are locally owned.1

7.3% 11 stores awarded retail up-fit grants from DRA since 2015

VACANCY RATE for leasable downtown retail space¹

230,000 square feet of ground floor retail space planned or under construction

$204 million in future potential retail spending by downtown residents, workers, and visitors2

GROCERY STORES As downtown gains more and more residents, over the next two years downtown Raleigh will gain three new grocery stores with locally-owned Weaver Street Market and Saxapahaw General Store both opening in 2018 and national grocer Publix opening 2019.

¹DRA: Does not include food or beverage establishments 2HR&A

SHOPPING | 53

© Stacey Simeone

POP-UPS

With the help of DRA, downtown has hosted a series of successful pop-up stores including Flight (collaboration between two downtown retailers for creative gifts), Craft Habit (crafting supplies), Twisted Oak (collective of 10 local artists), Raleigh Vintage, Republic Wireless, and an interactive visual art installation. These pop-ups have used innovative collaborations to help retailers experiment with new concepts, activate vacant storefronts, and make downtown’s streets more vibrant and livelier. LM Restaurants has been a major partner and supporter on this effort.

FOOD HALLS

MORGAN STREET FOOD HALL © Flyboy Photography

The addition of two food halls in 2018 will bring together food vendors, producers, and retailers.

Transfer Co.: Adaptive reuse project of a historic transportation warehouse near Moore Square that will serve as a chef-driven hub of food producers including Saxapahaw General Store, Boulted Bread, Locals Seafood, Che Empanadas, and Videri Chocolate Factory.

Morgan Street Food Hall: Over 35 vendors in the Warehouse District will include Cousins Maine Lobster, Carroll’s Kitchen, Sassool, Raleigh Raw, Oak City Fish & Chips, Durham Toffee, and Five Points Baking Company.

© Flyboy Photography

TRANSFER CO.

EMERGING LOCAL RETAIL CLUSTERS IN...

Home Furnishings: Broad range of furnishings and design stores specializing in vintage, modern, antique, and other styles such as Port of Raleigh, Father and Son, Retro Modern Furnishings, Emily & Co., Hunt & Gather, Union Camp Collective, and Finds.

Local Gifts and Makers: Deco Raleigh, Videri Chocolate Factory, Holder Goods and Crafts, Oak City Roasters, Sorry State Records, The Alli, and Crude Bitters and Sodas.

Fashion: Raleigh Denim, Edge of Urge, The Art of Style, Feelgoodz, House of Swank, Revolver Boutique, Stitch-Holly Aiken, Flourish Market, Lumina Clothing, Quercus Studio, and Gypsy Jule.

Everyday Needs: Raleigh Provisions, Weaver Street Market, Oak City Market, Glenwood Pharmacy and Market, Unleashed: A Dog and Cat Store, Briggs Hardware, DGX Raleigh, and Publix.

NEW AND EXPANDING RETAIL

YMCA will move onto Fayetteville Street in 2018 and occupy over 26,000 square feet.

Locally-owned retailer DECO Raleigh will double in size and expand into a new nearby storefront on Salisbury Street.

Read With Me, a children’s bookstore, opened in 2017 on E. Hargett Street.

Raleigh Provisions, a locally-sourced bodega and gourmet shop, opened on S. Wilmington Street in 2017.

Urban Outfitters will open in downtown’s Warehouse District in 2018.

“When we were searching for retail space for our brick and mortar launch, there was never a question in what area of town we would settle. Even though most of our customers live in the suburbs, we have always viewed planting our roots in downtown Raleigh as a way to serve our customer base by inviting them to explore a flourishing downtown scene.

Downtown Raleigh continues to be a standout mark on an international map; we welcome innovation and opportunities to be a part of exciting efforts for the greater good. Our business is firmly planted here in downtown Raleigh.”

- EMILY SEXTON, THE FLOURISH MARKET SHOPPING | 55

2010-2017 | PERCENTAGE OF NET GAIN IN BUSINESSES BY STOREFRONT CLASSIFICATION

THE AVERAGE DOWNTOWN WORKER SPENDS

50%

$129

45%

46%

40%

38%

35%

32%

30%

PER WEEK ON FOOD, PERSONAL SERVICE, AND RETAIL PURCHASES

25%

26%

20%

(EXCLUDING ONLINE PURCHASES AND TRANSPORTATION COSTS)

15%

ICSC OFFICE-WORKER RETAIL SPENDING IN A DIGITAL AGE, 2012

5%

10%

0%

Retail

Bars/Nightclubs

Dining

Personal Services

Source: DRA, Storefront Inventories 2010 and 2018

PEDESTRIANS | ACTIVITY BY TIME OF DAY DRA and the City of Raleigh conduct periodic pedestrian counts, which are helpful for retail prospects to determine where to locate in downtown and how much visibility their location will have.

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 7:30 AM

8:30 AM

9:30 AM

Fayetteville St: City Plaza

10:30 AM

11:30 AM

12:30 PM

2:30 PM

3:30 PM

4:30 PM

5:30 PM

Fayetteville St from Davie St to Martin St

Fayetteville St from Martin St to Hargett St

Source: DRA and City of Raleigh, 2015

1:30 PM

6:30 PM

7:30 PM

8:30 PM

9:30 PM

10:30 PM

11:30 PM

12:30 AM

Fayetteville St from Hargett St to Morgan St

Wilmington St at Martin St (data ends at 5:30 pm)

FUTURE RETAIL DEMAND | GROWING NEED FOR MORE STORES An estimated $123 million is expected to be captured by downtown’s existing and upcoming retailers. According to recent analysis by HR&A Advisors, once downtown’s current development pipeline is built out, downtown

residents, office workers, and visitors could provide $204 million in total future potential retail sales. The potential retail sales are attracting the retailers which will meet the demand of a growing downtown.

IF DOWNTOWN’S CURRENT PIPELINE IS FULLY BUILT OUT:

RETAIL

Total future potential retail spending by downtown residents, visitors, office workers

Future spending estimated to be captured by downtown

$204 million

$123 million

Source: HR&A Advisors

DOWNTOWN RETAIL PIPELINE | UNDER CONSTRUCTION AND PLANNED PROJECT THE DILLON

DESCRIPTION 52,000 sf in Warehouse District under construction. Tenants include Weaver Street Market, Urban Outfitters, Heirloom Brewshop, and Barcelona Wine Bar. Delivers 2018.

ONE GLENWOOD

14,500 sf in Glenwood South under construction. Delivers 2019.

ORIGIN

4,000 sf in Glenwood South under construction as part of boutique hotel. Delivers 2019.

TRANSFER CO. (STONE’S WAREHOUSE)

UNION STATION

MORGAN STREET FOOD HALL

42,000 sf of renovated and expanded historic warehouse space for makers, food producers, vendors, and retailers under construction. Delivers 2018.

7,547 sf of retail inside new train station. Delivers 2018.

22,000+ sf of renovated warehouse to incubate small retailers inside a large hall, alongside small food vendors. Delivers 2018.

410 W. SOUTH STREET

3,000 sf under construction near Warehouse District. Delivers 2018.

PEACE

51,300 sf under construction in Glenwood South. Anchored by Publix. Delivers 2019.

THE WILLARD

3,100 sf space in planned boutique hotel in Glenwood South.

107 W. HARGETT STREET

5,029 sf retail space in planned renovated/expanded building.

400H

16,000 sf ground floor retail on Hillsborough Street near border of Warehouse District and

FNB TOWER

11,010 sf on ground floor of 22-story tower on Fayetteville Street soon to be under

Glenwood South.

construction. Delivers 2019.

SHOPPING | 57

© Julia Wade

BREWERY BHAVANA • 2018 Best New Restaurant in U.S. Semifinalist – James Beard Award • Top 10 Coolest Places to Eat in World in 2018 – Forbes • Top 10 Best Restaurants in America 2017 – Bon Appetit • Top Three Restaurants in Triangle – The News & Observer

DINING & NIGHTLIFE

Downtown Raleigh has become a major food destination regionally and nationally with over 150 dining establishments providing a broad range of cuisines and experiences.

51

Restaurants opened in downtown since start of 2016 with 24 opening in 2017

$223 MILLION

Food and beverage sales in downtown in 2017

13 James Beard Award nominations since 2010, including 3 James Beard Award nominations in 2018

ASHLEY CHRISTENSEN,

SCOTT CRAWFORD,

CHEETIE KUMAR,

POOLE’S DINER, DEATH &

CRAWFORD AND SON

GARLAND

• 2016 Best Chef Southeast

• 2017 and 2018 Best Chef

TAXES, BEASLEY’S CHICKEN + HONEY, CHUCK’S, FOX’S LIQUOR BAR •2 014 Best Chef in Southeast Winner – James Beard Award •2 016 and 2018 Outstanding

Semifinalist – James

Southeast Semifinalist –

Beard Award

James Beard Award

DEATH & TAXES • 2016 Best New Restaurant in U.S. Finalist – James Beard Award

• 2017 Best Restaurant in the Triangle – The News & Observer

Chef in U.S. Semifinalist – James Beard Award

Photo credits: Ashley Christensen (by Johnny Autry); Scott Crawford (by Downtowner Magazine); Death & Taxes (by Flyboy Aerial Photography)

DINING & NIGHTLIFE | 59

© Peter Taylor

BIDA MANDA

THE CORTEZ SEAFOOD + COCKTAIL

Best Restaurant in State – Business Insider

2017 Top Three Best Restaurant in Triangle – The News & Observer

Food and beverage sales hit $223 million in 2017 with 10% growth over 2016 and 95% growth since 2009.¹

Downtown Raleigh had 15 Gold, Silver, and Best in Class restaurants in 2017, as named by The News and Observer, more than any other submarket of the Triangle, plus the top three best restaurants in the region, Brewery Bhavana, The Cortez, and Crawford and Son.

NATIONALLY ACCLAIMED DINING AND NIGHTLIFE PROFILED BY:

1Wake County Tax Assessor

MOMENTUM | FOOD AND BEVERAGE SALES IN DOWNTOWN IN MILLIONS 2009-20171

GROWTH IN FOOD AND BEVERAGE SALES BY DISTRICT: 2013-20171

$250

Downtown’s four largest commercial districts have seen major growth in food and beverage sales in the past five years with the Warehouse District and Glenwood South seeing the most growth, percentage-wise, over that time.

$200

50% $150 40% $100

30% 20%

$50 10% 0% 2009 2010 2011

2012 2013 2014 2015 2016 2017

OUTDOOR DINING | FEATURED AT 90+ ESTABLISHMENTS CONNECTING PEOPLE WITH THE STREET ENVIRONMENT

Glenwood South Fayetteville St Moore Square Warehouse

NIGHTLIFE “To cheer up my digits, I considered taking them out on the town. I could smudge them on a martini glass at Capital Club 16; snap them at C Grace, a live jazz venue; or raise them high at Kings, a live music spot. But no matter what we did that evening, I would keep both thumbs up for Raleigh.”

– ANDREA SACHS, Washington Post

NUMBER OF PATRONS 4-10 11-18 19-28 29-40 41-64 65-148 149-272

149 - 272

Note: Includes both private outdoor seating and sidewalk seating 1Wake County Tax Assessor

6 60 1

Craft breweries including Brewery Bhavana, Clouds Brewing, Crank Arm Brewing, Little City Brewing + Provisions Co., Oak and Dagger Public House, and Trophy Brewing Co.

Bars, breweries, music venues, and nightclubs in downtown

Guinness World Record for most beers on draft at Raleigh Beer Garden

DINING & NIGHTLIFE | 61

© S.hughes Imaging

RESIDENCE INN RALEIGH DOWNTOWN • 2018 Imprint Award Winner • 175 rooms • I ncludes rooftop dining and bar terrace as well as storefront retail space

ARTS, CULTURE & TOURISM Downtown Raleigh is a center of creativity, arts, museums, events, and a diverse range of experiences.

3.4 M

929 K

18%

174

VISITORS to downtown’s top 12 attractions

ATTENDEES at outdoor events in downtown in 2017

GROWTH in hotel room occupancy since 2013 in downtown

OUTDOOR EVENTS in downtown in 2017

221,596 ATTENDEES AT THE WORLD OF BLUEGRASS

46%

1,022

71.3%

40+

INCREASE in visitors since 2007 including 7% growth in 2017

NEW HOTEL ROOMS planned or under construction

OCCUPANCY for downtown hotels in 2017

ART GALLERIES and institutions, entertainment venues, and performance groups based in downtown

CONFERENCE AND FESTIVAL IN 2017, A NEW RECORD FOR RALEIGH’S LARGEST EVENT

TOP DOWNTOWN ATTRACTIONS IN 2017

VISITORS

NC MUSEUM OF NATURAL SCIENCES

925,228

MARBLES KIDS MUSEUM/WELLS FARGO IMAX® THEATRE

692,573

RALEIGH CONVENTION CENTER

456,069

NC MUSEUM OF HISTORY

437,471

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

423,637

RED HAT AMPHITHEATER

131,427

NC STATE CAPITOL

107,429

ARTSPACE

98,000

NC LEGISLATIVE BUILDING

64,411

Note: Only counts permanent, year-round attractions. Festivals and events not included.

Source: Greater Raleigh Convention and Visitors Bureau

ARTS, CULTURE & TOURISM | 63

ON THE MAP | 2017 MAJOR ATTRACTION ATTENDANCE + HOTELS

E FRANKLIN ST

PACE ST

HALIFAX ST

SEMART DR

SEABOARD AVE

Boutique Hotel Hampton Inn

Holiday Inn Express

State Legislative Building NC Museum of Natural Sciences

WILMINGTON ST

State Government Complex

Governor’s Mansion

NC Museum of History

Holiday Inn

The Willard

NC State Capitol Origin Marbles Kids Museum

COR Museum

CAM Raleigh

Moore Square City Market

Hilton Garden/ Homewood Suites

Artspace

KI

YS

T

KINSEY ST

NS E

Courtyard Marriott

Red Hat Amphitheater

LEGEND

Sheraton

Raleigh Convention Center

Marriott City Center

Residence Inn

Elementbranded Hotel

Complete Under Construction Planned

Source: Greater Raleigh Convention and Visitors Bureau and DRA

Guest House

Duke Energy Center for the Performing Arts

OUTDOOR EVENTS AND ATTENDEES IN DOWNTOWN BY MONTH IN 2017

350,000

30

300,000

25

250,000

20

200,000 15 150,000 10

100,000

5

50,000 0

Jan

Feb

Mar

Apr

May

June

July

Number of Events

Aug

Sep

Oct

Nov

Dec

0

Number of Attendees

MAJOR FESTIVALS AND EVENTS ARTSPLOSURE

OUT! RALEIGH

WIDE OPEN BLUEGRASS

LA FIESTA DEL PUEBLO

“THE WORKS” 4TH OF JULY CELEBRATION

RALEIGH DOWNTOWN FARMERS MARKET

SPARKCON

FIRST FRIDAY (MONTHLY)

RALEIGH CHRISTMAS PARADE BY SHOP LOCAL RALEIGH

RALEIGH ST. PATRICK’S DAY PARADE

FIRST NIGHT RALEIGH

DOWNTOWN RALEIGH FOOD TRUCK RODEO SERIES

CAPITAL CITY BIKEFEST

HOPSCOTCH

BUGFEST

AFRICAN AMERICAN CULTURAL FESTIVAL OF RALEIGH & WAKE CO

BREWGALOO

GROWTH IN DOWNTOWN TOURISM SINCE 2007

IBMA WORLD OF BLUEGRASS

3,500,000

The International Bluegrass Music Association (IBMA) holds their annual convention in downtown Raleigh. The convention and accompanying music festival brought an estimated 221,596 people to downtown in 2017, a record for largest outdoor event in Raleigh’s history. The Greater Raleigh Convention and Visitors Bureau estimates the event created:

3,000,000 2,500,000

46%

2,000,000 1,500,000 1,000,000 500,000 0

‘07

‘08

‘09

‘10

‘11

‘12

Source: Greater Raleigh Convention and Visitors Bureau

‘13

•$ 11.7 million in direct visitor spending in 2017, up 26% from 2013

‘14

‘15

‘16

‘17

•$ 48.88 million in total direct economic impact since 2013

ARTS, CULTURE & TOURISM | 65

R A L E I G H C O NV ENTIO N C ENTER 26% INCREASE IN ATTENDEES IN 2017

More than 456,000 people attended conventions and events at the facility. Built in 2008, the convention center has:

500,000 TOTAL SQUARE FEET

150,000 Square Foot Exhibit Hall | 32,620 Square Foot Ballroom | 32,600 Square Feet of Meeting Rooms

500 Kilowatt Solar Energy System, comprised of 2,080 panels, producing more than 725,000 Kilowatt Hours of Electricity

NEW, PLANNED, AND EXISTING HOTELS | Downtown has 1,257 rooms with 175 rooms added in 2017 and 1,022 more rooms under construction or planned.

NEW AND PLANNED HOTELS

ROOMS RECENTLY COMPLETED

RESIDENCE INN (COMPLETED SUMMER 2017)

175 ROOMS

UNDER CONSTRUCTION ORIGIN (DELIVERS 2019)

126 ROOMS

GUEST HOUSE

8 ROOMS PLANNED

COURTYARD MARRIOTT

192 ROOMS

ELEMENT-BRANDED HOTEL

145 ROOMS

HILTON GARDEN INN

259 ROOMS

HOLIDAY INN EXPRESS

107 ROOMS

PEACE STREET UNNAMED BOUTIQUE HOTEL

60 ROOMS

THE WILLARD

125 ROOMS

HOTELS Downtown Raleigh hotels consistently outperform county, state, and national averages, demonstrating a growing visitor base and increasing demand for hotels in Raleigh’s CBD.

1,257

hotel rooms in downtown with 175 rooms added in 2017¹

2017 HOTEL MARKET PERFORMANCE $160

72%

$140

70%

$120

68%

$100 66% $80 64% $60 62%

$40

60%

$20

58%

$Downtown

Wake County

Average Daily Rate

North Carolina

Revenue Per Room

U.S.

Occupancy Rate

HOTEL ROOM OCCUPANCY:

71.3%

¹

$ $148.71

Average daily room rate, up 15% over 2013¹

Note: Applies to five hotels: Marriott, Sheraton, Holiday Inn, Hampton Inn, and Residence Inn which comprise 1,257 rooms in the downtown market.

GROWTH IN HOTEL PERFORMANCE SINCE 2013: DOWNTOWN RALEIGH, WAKE COUNTY, AND THE U.S. 40%

18%

growth in hotel occupancy over past five years with a 37% growth in revenue/room to $104.09 over 2013¹

35% 30% 25% 20% 15% 10% 5% 0% Hotel Room Occupancy Downtown Raleigh

Average Daily Room Rate Wake County

U.S.

¹STR Global and Greater Raleigh Convention and Visitors Bureau

Revenue Per Room

1,022

rooms planned or under construction¹ ARTS, CULTURE & TOURISM | 67

© Flyboy Photography

ARTS RALEIGH’S CREATIVE HUB

$167 million in spending from arts and cultural groups in Raleigh, more than double the median amount for similar sized cities and generating $532 million for the local economy.1

20+

DOWNTOWN ART GALLERIES AND ARTS INSTITUTIONS

including CAM Raleigh, VAE Raleigh, Artspace, Lump Gallery, Tipping Paint

180K+

Attended festivals & celebrations

Gallery, and Mahler

of art including First Friday,

Fine Art Gallery

Artsplosure, and SPARKcon

1Arts and Economic Prosperity V: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the City of Raleigh, North Carolina, 2016

NC OPERA

ARTSPLOSURE

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

ARTSPACE

RED HAT AMPHITHEATER • 131,427 attendees in 2017 • 23% increase over past four years

NC SYMPHONY

NC THEATRE

CAROLINA BALLET

SPARKCON

CAM RALEIGH

FIRST FRIDAY

600+ events annually | 423,637 attendees in 2017 • • • •

Meymandi Concert Hall: 1,750 seats Raleigh Memorial Auditorium: 2,263 seats Fletcher Opera Theater: 600 seats Kennedy Theater: Experimental Theater, 170 seats

HUB FOR MUSIC AND PERFORMING ARTS Wide range of music and performing arts venues from Duke Energy Center for the Performing Arts to Red Hat Amphitheater to smaller clubs like The Lincoln Theatre, Pour House Music Hall, Kings, Slim’s, The Stag’s Head, Deep South The Bar, and C Grace.

AMERICAN AQUARIUM

BOULEVARDS

TIFT MERRITT

KING MEZ

“The thing that inspires me about downtown Raleigh is the pure growth. There are so many talented young people in Raleigh. It has come a long way since I grew up there all my life. It’s a cool and hip place to be with so many creative people.

It’s a beautiful thing to see the growth of Raleigh. People of Raleigh are open to new and exciting things. Change is good, especially if it is in a positive way and impacting the growth of the city.”

– BOULEVARDS

Photo credits: NC Opera/NC Theatre (Curtis Brown); Artsplosure (Brian Magee); Artspace/Amphitheater/CAM/First Friday (Tierney Farrell); Performing Arts (Carolyn Scott); NC Symphony (Michael Zirkle)

ARTS, CULTURE & TOURISM | 69

MORE than just our latest project, The Dillon will soon be our

HOME stewartinc.com

FOR SALE! 504 S. DAWSON STREET 228-200 Fayetteville St. Raleigh NC 27601 carter@carterworthy.com Mobile: 919.961.3595

• Extraordinary .89 acre development site in Downtown Raleigh

• Panoramic view of Raleigh skyline, Red Hat Amphitheater and the Shimmer Wall

• Asking $5,275,000 ($136/sf)

• 3 parcels: 301 W. Cabarrus St and 504 and 510 S. Dawson St

• 1 block from Raleigh Convention Center

• Preliminary due diligence already complete

• Ideal for hotel, apartments, condos or mixed use

• Zoned for 12 stories; DX-12-UG

FOR MORE INFORMATION AND A DRONE VIDEO FLYOVER, GO TO HTTP://CARTER68.WIX.COM/504SDAWSON

DRA BOARD, STAFF & ACKNOWLEDGEMENTS OFFICERS & EXECUTIVE COMMITTEE

BOARD OF DIRECTORS

Sharon Moe Chair North State Bank

DeLisa Alexander Red Hat Marty Clayton Duke Energy

Neil Gray Treasurer / Chair-Elect JDavis

Adrienne Cole (Ex-Officio) Greater Raleigh Chamber of Commerce

Jon Wilson Immediate Past Chair Kimley-Horn and Associates, Inc. Joseph ‘Bo’ Dempster, Jr. Legal Counsel Poyner Spruill Pam Blondin Secretary Deco Raleigh

Leon Cox Sheraton Raleigh Hotel Courtney Crowder Crowder Consulting, LLC Robert Doreauk AT&T North Carolina Denny Edwards (Ex-Officio) Greater Raleigh CVB

ACKNOWLEDGEMENTS

Robby Lawson Resident at The Dawson Condos Williams Mullen Sean Malone (Ex-Officio) Dorothea Dix Park Conservancy David Meeker Carpenter Real Estate, LLC Joe Meir Blue Ridge Realty, Inc Van Nolintha Bida Manda and Brewery Bhavana Sarah Powers City of Raleigh Arts Rebecca Quinn-Wolf PNC

Sally Edwards At-Large Marbles Kids Museum

David Ellis (Ex-Officio) Wake County

D. O’Hara Macken At-Large Ipreo

Sue Glennon Hampton Inn & Suites Hotel at Glenwood South

Jason Smith 18 Restaurant Group

Caroline F. Welch At-Large ABC 11

Cameron Gorse Resident at SkyHouse

Nicole Stewart (Ex-Officio) City of Raleigh

Jim Greene (Ex-Officio) City of Raleigh

Doug Warf MDO Holdings and O2 Fitness Clubs

Kristopher Larson (Ex-Officio) President & CEO DRA

Brian Ralph William Peace University

Tyler Helikson Happy + Hale

PROFESSIONAL STAFF

Tyler Breazeale Research Analyst

Bob Hagh Director of Public Engagement & Communications

Kathleen Louis Director of Business Development

Chase Bryan Director of Events

Kimberley Jones Executive Assistant & Chief Morale Officer

Stacey Simeone Director of Marketing

Jean Carroll Events Coordinator

Bill King Senior Vice President of Planning & Development

Lyndie Simpson Director of Finance & Human Resources

Roxanne Coffey Office Manager

Kristopher Larson President & CEO

For errata visit: DowntownRaleigh.org

THANK YOU TO OUR STATE OF DOWNTOWN RALEIGH EVENT TOP LEVEL SPONSORS

Presenting Sponsor

Imprint Awards Sponsor

Artsplosure Americans for the Arts Avison Young Biz 3 Publicity & Management BJ Barham, American Aquarium Bida Manda Brewery Bhavana Campbell Law School Capital Area Transit Authority Carolina Ballet CBRE Cheetie Kumar City of Raleigh: Planning & Development; Urban Design Center; Parks and Recreation; Public Works; Office of Sustainability; Office of Transportation Planning; Special Events Office Colliers International Downtown Living Advocates Downtown Raleigh Alliance Downtowner Magazine Greater Raleigh Chamber of Commerce Greater Raleigh Convention and Visitors Bureau HR&A Advisors HQ Raleigh Integra Realty Resources Jamil Rashad, Boulevards JLL Julie Brackenbury, Greater Raleigh Convention and Visitors Bureau Loren Gold, Greater Raleigh Convention and Visitors Bureau NC Opera NC State University NC Symphony NC Theatre Raleigh City Farm Raleigh Convention Center Raleigh-Durham Airport Authority Residence Inn Raleigh Downtown Second Saturday Sasaki Associates Shaw University Smith Travel Research St. Augustine’s University Triangle Business Journal U.S. Bureau of Labor Statistics U.S. Census Bureau Visual Art Exchange Wake County: GIS, Revenue Department William Peace University

Platinum Sponsors August Construction Solutions Citrix Kane Realty Corporation Nando Media Williams Mullen

This report was authored by Bill King with assistance from Tyler Breazeale.

The layout and design and informational graphics were created by Stacey Simeone.

DRA MISSION

The Downtown Raleigh Alliance is an award-winning nonprofit organization whose mission is to continue the revitalization of Raleigh’s downtown by enhancing its quality of life and contributing to its economic success.

COVER PHOTO BY TRAVIS JACK, FLYBOY AERIAL PHOTOGRAPHY

PRODUCED BY:

333 Fayetteville Street, Suite 1150 • Raleigh, NC 27601 • www.DowntownRaleigh.org • info@downtownraleigh.org • 919.832.1231