State of Downtown Raleigh 2016

2016 | Downtown Raleigh Alliance

State of Downtown Raleigh 2016 An In-Depth Look at One of America’s Fastest Growing Downtowns

MAJOR DOWNTOWN EVENTS + FESTIVALS

LETTER FROM DRA PRESIDENT + CEO THE STATE OF DOWNTOWN RALEIGH 2016: AN IN-DEPTH LOOK AT ONE OF AMERICA’S FASTEST GROWING DOWNTOWNS In 2015, downtown Raleigh saw the culmination of years of partnership between the City of Raleigh, Downtown Raleigh Alliance, private sector and our community with the completion and approval of the Downtown Experience Plan. This plan provides a 10-year vision for how our downtown can capitalize on its incredible momentum and continue to thrive through more green space, density, transit, retail, walkability and other strategic investments.

While we expect that plan and vision to transform our downtown, as this year’s State of Downtown report shows, downtown Raleigh is already thriving and becoming one of America’s fastest growing downtowns and an anchor for activity in the Triangle region.

• • • • •

•S tarting with projects delivered in 2015, downtown is in the midst of a $1.1 billion construction boom, based on development recently delivered, under construction or planned • Downtown is adding 2,850 new residential units, which will attract over 4,500 residents.

More than 1.1 million square feet of office space is under construction or planned for downtown, providing more space for our rapidly growing technology and innovation sector More than 600 hotel rooms are either under construction or planned in response to 15% growth in hotel occupancy rates over the past two years Downtown’s retail base has grown by over 39% in five years and has added 10 new stores since the start of 2015 Downtown is becoming a hub of transit and alternative modes of transportation with a new $79.8 million multi-modal center under construction and a newly approved Bike Share system set to add 30 stations and 300 bicycles to Raleigh Downtown is now home to an award winning restaurant scene with four James Beard Award nominations since 2014

This year’s State of Downtown report includes even more data on market trends, population, demographics and development, as well as peering into the future with projections and a summary of exciting upcoming projects and plans for downtown. Each chapter provides a detailed look at all of the interrelated aspects of downtown that reinforce each other and make downtown a vibrant and exciting place. We provide both previously-reported, industry-specific data collected by others, as well as original analysis and data from our staff here at DRA on retail, population, density and many other areas.

Furthermore, this report benchmarks downtown Raleigh to peer central business districts and regional trends, as a way of showing our tremendous success, as well as opportunities for improvement and further growth. Given the extraordinary amount of exciting upcoming projects about to start in downtown, we included a chapter on future investments in downtown and the Downtown Plan to help illustrate downtown’s rise in the coming years.

This report is a major, multi-month effort led by Bill King, Manager of Planning and Development; designed by Stacey Simeone, Marketing Director; and edited by Roxanne Coffey, Office Manager.

Lastly, at DRA, we strive to be an excellent resource for our community and our real estate and economic development partners. Please contact me at daviddiaz@downtownraleigh.org if you have any questions or comments about how DRA can help you invest or expand your footprint in downtown.

DAVID A. DIAZ | Downtown Raleigh Alliance, President + CEO

06 | INTRODUCTION TO DOWNTOWN 14 | DEVELOPMENT + INVESTMENT 26 | FUTURE PLANNING + PUBLIC INVESTMENT 36 | LIVING 46 | OFFICE, INNOVATION + TALENT 58 | SHOPPING 64 | DINING + NIGHTLIFE 68 | TOURISM 74 | ARTS + CULTURE 82 | CONNECTIVITY + SUSTAINABILITY 90 | DRA IMPACT

DOWNTOWN MAP

Seaboard/ Person Street District

Glenwood South District

Capital District

Moore Square District

Warehouse District Fayetteville Street District

1-mile radius

Downtown

MSD boundaries

DOWNTOWN GROWTH PROJECTIONS

RESIDENTS

= 2,850+ residential units

4,275 new residents

OFFICE SPACE

= 1.1 million square feet

5,000 new office workers

RETAIL SPACE

= 150,000+ square feet

40+ stores and restaurants

HOTELS ROOMS

= 600+ rooms

220,000 more overnight stays per year

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

VALUE

SHOP

31% INCREASE IN PROPERTY VALUE FOR DOWNTOWN SINCE 2008¹

10 NEW STORES ADDED SINCE BEGINNING OF 2015

106% increase in land value for downtown since 2008¹

39% increase in downtown retailers since 2010

EAT AND DRINK

150,000 square feet of new retail space planned 5% STOREFRONT VACANCY RATE

19% growth in food and beverage sales since 2012 GUINNESS WORLD RECORD HOLDER FOR MOST BEERS ON TAP AT NEW RALEIGH BEER GARDEN

130+ restaurants downtown 4 JAMES BEARD AWARD NOMINATIONS IN 2014-2016 INCLUDING WINNER OF BEST CHEF: SOUTHEAST ¹Wake County Tax Assessor’s Office ²U.S. Census

LIVE 2,850 residential units recently delivered, under construction, or planned 15,240 RESIDENTS LIVE WITHIN ONE MILE OF THE STATE CAPITOL BUILDING²

FAST FACTS

133% population increase since 2000 in downtown core 7,000 RESIDENTS CURRENTLY LIVE DOWNTOWN

10,000+ residents by 2020

WORK 1.1 million square feet of Class A office space being added to downtown

1,127 HOTEL ROOMS

3.5 million visitors annually to downtown attractions

CREATE $140 MILLION+ IN CITYWIDE ECONOMIC IMPACT FROM THE ARTS WITH NEWLY ADOPTED RALEIGH ARTS PLAN TO STIMULATE MORE CREATIVITY⁴

45,000+ EMPLOYEES

Nearly 40 art galleries and entertainment venues in downtown

40,000+ STUDENTS AT UNIVERSITIES IN RALEIGH

15,000+ ATTEND MONTHLY FIRST FRIDAY EVENTS

46 employees per acre, densest office market in region

500,000+ ATTENDED SHOWS AT DUKE ENERGY CENTER FOR PERFORMING ARTS AND RED HAT AMPHITHEATER LAST YEAR⁵

6 MILLION+ SQUARE FEET OF OFFICE SPACE IN DOWNTOWN

CONNECT + SUSTAIN

THREE TIER-1 RESEARCH UNIVERSITIES IN TRIANGLE

VISIT 71.7% occupancy rate, 15% increase since 2013³ 600+ ROOMS PLANNED OR UNDER CONSTRUCTION 33% GROWTH IN TOURISTS SINCE 2007

95: Highest Walk Score in Triangle⁶ 30 STATIONS AND 300 BICYCLES IN NEW BIKE SHARE COMING 2017

320 acres of new parks in planning⁷ 105 ACRES OF EXISTING PARKS WITHIN ONE MILE OF DOWNTOWN⁷

$79.8 million new multi-modal station

²U.S. Census ³STR ⁴City of Raleigh ⁵Greater Raleigh Convention and Visitors Bureau ⁶walkscore.com ⁷City of Raleigh Parks and Recreation Department

FAST FACTS | 7

© Tierney Farrell © Carolyn Scott

MAJOR DOWNTOWN EVENTS + FESTIVALS

Introduction to Downtown By every measure, downtown Raleigh is exploding with growth. Since 2005, downtown has seen over $2.75 billion in development completed, which has added new residences, convention space, offices, retail, entertainment venues, hotels, and restaurants. The future is even brighter for downtown with growth poised to add thousands of new residents, workers, visitors, stores, businesses, parks, and infrastructure.

Raleigh is among the top 10 large cities in the U.S. for economic growth.¹

Over a million square feet of new office space is being added to accommodate one of the most talented workforces and tech industries in the country, while thousands of new residential units are coming online, hundreds of new hotel rooms are planned in response to downtown’s strong hotel occupancy and visitor base of 3.5 million, and new stores and restaurants are opening at a rapid pace. Downtown is also becoming more connected through a newly approved Bike Share system and construction of a multi-modal center with Raleigh Union Station, along with major road improvements.

Downtown is seeing other large public investments in new and renovated parks, including planning for the 308-acre Dix Park and renovation of historic Moore Square. Finally, helping guide downtown’s growth is a new 10-year vision plan with ideas on continuing and building upon downtown’s tremendous momentum.

$1.1 billion

$321 million

4,000,000

$570+ million

$350 million

$182 million

development pipeline

square feet being added to downtown

under construction

¹Wallet Hub, September 2015

A thriving creative culture calls downtown home with artists, musicians, innovative tech companies, awardwinning chefs, and cutting-edge makers all sharing and creating in downtown Raleigh.

recently delivered

planned

in public investment

INTRODUCTION TO DOWNTOWN | 9

DEMOGRAPHICS

POPULATION | PERCENTAGE INCREASE SINCE 2000

POPULATION | SHARE BY DISTRICT

Downtown Raleigh’s population has grown by 133% since 2000 with the addition of over 3,000 residential units in the past 16 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, and St. Mary’s Square.

Every district in downtown is adding units and population, including the Capital District, which has seen recent additions from Elan City Center, Blount Street Commons and Peace Street Townes. Moore Square also added a lot of new units from SkyHouse, The Lincoln, and The Edison, while Glenwood South continues to add hundreds of units from The Link, The Gramercy, and Four25 Devon.

Moore Square 28%

DOWNTOWN RALEIGH

Capital 8%

CITY OF RALEIGH

Fayetteville Street

Glenwood South

16%

31%

STATE OF NC

Warehouse 17%

0%

20%

40%

60%

80%

100%

120%

140%

Source: U.S. Census

Source: DRA

DENSITY | PEOPLE PER SQUARE MILE

INCOME | GROWTH

Downtown’s density has increased considerably since 2000 and is now comparable to other CBDs in the south.

The annual rate of growth in median household income between 20152020 will be 4.8% for the greater downtown area compared to 2.85% for the state and 2.66% nationally.¹

12% growth in average household income for residents between the ages of 25-54 from 2015-2020.¹

CBD

City of Raleigh

Wake County

5,221/SM

3,055/SM

1,179/SM

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

¹U.S. Census

DEMOGRAPHICS

POPULATION | GROWTH EXPECTED TO CONTINUE IN YEARS TO COME

Downtown Raleigh’s current population is an estimated 7,000 residents. Within one mile of downtown’s center point, the current population is an estimated 15,240. Downtown’s population is projected to be over 10,000 residents by 2020. Also by 2020, 17,800+ residents will reside within one mile of downtown’s center with opportunity for even more growth if the present rate of development continues.

CBD

20,000 18,000

Within 1 mile

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2000

2010

2015

2020 (Projected)

Source: U.S. Census, ESRI Business Analyst

AGE | A YOUNG DOWNTOWN 41.4% of downtown residents are between the ages of 25-44 compared to 30% for the City of Raleigh and 26% nationally.

30%

25%

20%

15%

10%

5%

0% Under 19

20-24

25-34 CBD

35-44 Raleigh MSA

45-54

55-64

65+

US

Source: U.S. Census, American Community Survey

INTRODUCTION TO DOWNTOWN | 11

© Tierney Farrell

© Tierney Farrell

© Tierney Farrell

© Tierney Farrell

© Flyboy Photography

© Tufshot Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

DOWNTOWN DISTRICTS Capital District 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 combined to attract nearly 1.4 million visitors last year, more than any other attractions in the state.

With new apartments and townhomes opening on the northern edge of the district and a renewed interest in redeveloping the state government campus

by Governor Pat McCrory and Project Phoenix, this district will transform into a more vibrant district for downtown.

• 276 new residential units under construction • 1.5 million visitors • 9,000 employees Fayetteville Street District Home to the civic spine of the city and state with the iconic Fayetteville Street, this district has something for everyone with skyscrapers of Class A office space and condos 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.

• 40 dining establishments • 12 stores and boutiques • Home to the four tallest buildings in Raleigh and six of the top 10 overall Moore Square District Moore Square is primed to change dramatically with major public investment helping stimulate large private development. The park will undergo a $12.5 million renovation beginning in summer 2016, while the nearby GoRaleigh Transit Station, the central hub for Raleigh’s bus system, is in the midst of a $9 million renovation set to finish in 2017. The Blount and Person Street corridors will also receive new street-scaping to add bike lanes and make the thoroughfares more pedestrian friendly. New residential development such as SkyHouse, Edison Lofts, and The Lincoln help make this district one of the densest neighborhoods in Raleigh. The district is already a destination for retail and the arts as its home to the unique Historic City Market, along with Artspace, a 30,000 square foot historic building featuring 25 artist studios. Marbles Kids Museum and live music venues like The Lincoln Theater and Pour House also call Moore Square home.

• 783 units opening in 2015 and 2016 • Over $20 million in public investment in 2016-2017 • 670,000+ attend Marbles Kids Museum and Wells Fargo IMAX Theatre

Glenwood South District 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 recently added the massive new Carolina Ale House and world record holding Raleigh Beer Garden. With over 600 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.

• 667 new residential units opening in 2015 and 2016 • 34 dining establishments • 21 retailers • Over 20 bars and clubs Seaboard/Person Street District (North End) Containing the commercial centers of Seaboard Station and Person Street Plaza, the North End has a neighborhood feel with locally owned businesses such as bakeries, pet supply shops, local clothing boutiques, hardware, garden stores, and some of downtown’s best restaurants. This area is home to historic anchor institutions like William Peace University, as well as contemporary landmarks like the AIA Center for Architecture and the new Holy Trinity Anglican Church. Nearby residential development like Blount Street Commons, Elan City Center Apartments, and Peace Street Townes are bringing more residents to this area and increase the demand for retail and services, along with better connectivity to the rest of downtown.

• Over 15 retail stores and services • 10+ dining establishments Warehouse District 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 addition of Raleigh Union Station and The Dillon, a mixed use tower and residential development. Residents, visitors, and employees find plenty of entertainment as the Warehouse District is home to great restaurants, galleries and entertainment venues. In recent years, the district has also seen the addition of new destination retail, where retailers make their products and sell them on site.

• Over 250,000 square feet of office space for cutting edge companies under construction or planned • Home to Citrix, HQ Raleigh and upcoming projects The Dillon and Morgan Street Food Hall • Over 10 restaurants, 10 stores, six art galleries with 40,000 square feet of retail space under construction INTRODUCTION TO DOWNTOWN | 13

PAST DOWNTOWN REVITALIZATION

2003: LIVABLE STREETS PLAN

2010: RED HAT AMPHITHEATER OPENS

Five transformative projects in five years

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

•J ustice Center: $153 million investment and LEED Silver certified • SECU: $45 million, 12-story, 240,000 square feet, LEED Gold certified 2014: CITRIX MOVES DOWNTOWN •C itrix moves into the Warehouse District occupying a 170,000 square foot modern office building in a restored warehouse and joining other tech companies to help make downtown a destination for innovation • Downtown kicks off plan for future: public events draw over 1,000 people to create 10-year vision for downtown’s future • Massive boom in residential construction: 10 residential buildings under construction at one time, bringing 1,820 units

© Tierney Farrell

2015: UNION STATION BREAKS GROUND © Carolyn Scott

2009: CITY PLAZA OPENS

JUSTICE CENTER AND SECU TOWER OPEN

© Carolyn Scott

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

© Carolyn Scott

$630 MILLION IN COMPLETED PROJECTS

2013: TECH COMPANIES MOVE DOWNTOWN

© Carolyn Scott

•P rovides over 500,000 square feet 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

© Carolyn Scott

•T oday, draws over 600,000 visitors to downtown every year

© Carolyn Scott

2007: MARBLES KIDS MUSEUM OPENS

© Carolyn Scott

© Monica Slaney

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

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

•C ontemporary Art Museum opens anchoring the Warehouse District

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

2004: TWO PROGRESS PLAZA OPENS

2005: $60 MILLION COMPLETED

© Tierney Farrell

2011: CAM OPENS

© Carolyn Scott

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

•P rovides a unique outdoor venue for the region

• $80 million multi-modal station in the Warehouse District, which will enhance downtown’s transit accessibility and connectivity to the rest of the region and stimulate transit-oriented development

WEST STATION ENTRY

MORE DOWNTOWN REVITALIZATION

2016- : HOTEL ROOMS ADDED TO TRY AND MEET GROWING DEMAND

2015: DOWNTOWN EXPERIENCE PLAN APPROVED • 1 0-year plan that calls for more green space, retail, density, connectivity, and strategic development

•T he 308-acre Dix Park will give downtown and Raleigh a signature, urban green space for a wide variety of recreational uses • 12-acre Devereux Meadows will provide much needed green space near Glenwood South and the north side of downtown • Moore Square’s renovation will bring a dynamic new park to the heart of downtown • 30 stations and 300 bicycles for Raleigh’s new Bike Share

2016- : MORE OFFICE TOWERS AND COLLABORATIVE SPACE OPEN

© Flyboy Photography

•O ver 2,000 units will be completed during 2015 and early 2016 with more planned for the future, which add substantial population to downtown and help make it the densest urban core in the Triangle

2018- : MORE GROUND-LEVEL SPACE ADDED TO HELP ACCOMMODATE GROWING RETAIL DEMAND Given downtown’s retail base has grown by over 39% in the past four years, food and beverage sales are up nearly 20%, and storefront vacancy continues to hover in the single digits, more ground level space will bring new stores and life to downtown’s streets • 150,000 square feet of new ground-floor space added to downtown

© Flyboy Photography

•C harter Square II, The Dillon, One Glenwood, The Edison, and 301 Hillsborough Street will add 1.1 million square feet of new office space to downtown • New collaborative space like The Nest and HQ Raleigh’s expansion will help more small companies incubate and grow in downtown

2016- : RESIDENTS FLOCK TO DOWNTOWN AS NEW DEVELOPMENTS OPEN

2017- : MORE GREEN SPACE AND TRANSPORTATION OPTIONS ADDED INCLUDING DIX PARK AND BIKE SHARE © Flyboy Photography

•O ver 2,850 residential units under construction, delivered or planned, with 1,331 delivered including SkyHouse (320 units), The L (83 units), The Lincoln (224 units), Elan City Center (213 units), and Link Apartments (203 units) and many more under construction

© Tierney Farrell

2015/2016: RESIDENTIAL WAVE BEGINS

© Flyboy Photography

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

© Tierney Farrell

CHARTER SQUARE OPENS

Buoyed by a rising occupancy rate, more business travelers visiting downtown and a strong interest in expanding Raleigh’s successful convention center, more hotels will open • Residence Inn by Marriott opens in 2016 with 175 rooms near the convention center • Other hotel projects are also currently in the works, which look to break ground in 2016-2017

INTRODUCTION TO DOWNTOWN | 15

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

Development + Investment Downtown Raleigh is exploding with new construction and development. Over the past decade, downtown has seen over $2.75 billion in investment, which has resulted in more residents, workers, and visitors, along with more retail, restaurants, bars, and services.

$321 $1.1 billion+ of recently completed, under construction or planned development

Over $350 million in ongoing construction

$321 million in development delivered since the beginning of 2015

2,850+ residential units recently completed, under construction or planned

More than $182 million in public investment

600+ hotel rooms planned or under construction

106% Over 4 million square feet of space being added to downtown

¹Wake County Tax Assessor’s Office

31% increase in property value for downtown since 2008¹

106% increase in land value for downtown since 2008¹

DEVELOPMENT + INVESTMENT | 17

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS HOTELS

VALUE | DOWNTOWN RALEIGH SOARS ABOVE CITY IN VALUE

Downtown is Raleigh’s most valuable area, as shown below, with downtown in the center of the map.

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.

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

DOWNTOWN VALUE

Density and height in downtown office towers pays off. On average, downtown skyscrapers pay $961,275 in property taxes per acre, per year, which is $953,379 more than Raleigh’s big box stores.

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 $961,275 in property taxes per acre, per year, while a big box retailer in Raleigh pays an average of $7,896 per acre annually. Downtown multi-family apartment buildings also yield more efficient tax revenue per acre, as they average $143,554 per acre in property taxes to the city and county governments versus just over $8,700 per acre for large apartment complexes throughout the rest of the city.

$1,050,000.00 $961,275.92

$900,000.00

$750,000.00

$600,000.00

$450,000.00

$143,554.66

$300,000.00

$60,034.70 $8,788.70

$7,896.74

$2,978.85

Apartment Complexes Outside CBD

Big Box Store (Raleigh)

Single Family Home

$150,000.00 Downtown Skyscraper

Source: Wake County Tax Assessor’s Office

Downtown Multifamily Apartment Building

Shopping Mall (Raleigh)

DEVELOPMENT + INVESTMENT | 19

MAJOR DOWNTOWN EVENTS + FESTIVALS

Investments in downtown are yielding big profits for developers across

Š Flyboy Photography

asset classes, including office, residential, and hotel properties.

CITRIX | PRICE PER SQUARE FOOT

Sales price 52% more than investment costs

421 FAYETTEVILLE STREET | PRICE PER SQUARE FOOT

74% increase in sales price $250

$400 $350

$200 $300 $250

$150

$200 $100

$150 $100

$50 $50 $-

$Investment

Sold

Sources: Triangle Business Journal, News and Observer

2005 Sources: Triangle Business Journal, News and Observer

2014

INVESTMENT

© Tierney Farrell

© Flyboy Photography

SHERATON | DIFFERENCE IN SALES PRICE

Sold for more than double the purchase price in 2012

SKYHOUSE | DEVELOPMENT COST VS. SELLING PRICE

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

$50,000,000 $120,000,000 $45,000,000 $40,000,000

$100,000,000

$35,000,000 $80,000,000

$30,000,000 $25,000,000

$60,000,000

$20,000,000 $40,000,000

$15,000,000 $10,000,000

$20,000,000 $5,000,000 $0

$Purchase Source: News and Observer

Sold

Development

Sold

Source: Triangle Business Journal

DEVELOPMENT + INVESTMENT | 21

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

Each of the five downtown districts will see significant private and public investment.

WHAT’S NEW | RECENTLY DELIVERED, UNDER CONSTRUCTION + PLANNED DEVELOPMENT BY DISTRICT

18%

21%

23%

20%

18%

Capital

Glenwood South

Moore Square

Fayetteville Street

Warehouse

$210,500,000

$245,700,000

$244,000,000

$235,100,000

$210,000,000

DOWNTOWN DEVELOPMENT

Over $1.1 billion in recently delivered, under construction and planned development.

DOWNTOWN DEVELOPMENT PIPELINE | DEVELOPMENT SINCE THE START OF 2015 OFFICE

RESIDENTIAL

HOTEL

RETAIL

COMPLETED

295,000 SF

1,331 Units

N/A

65,500 SF

UNDER CONSTRUCTION

335,000 SF

736 Units

175

61,000 SF

PLANNED

927,000 SF

783 Units

435

93,000 SF

TOTAL

1,557,000 SF

2,850 Units

610 Rooms

219,500 SF

Estimates based on announced plans

WHAT’S NEW | MORE THAN $182 MILLION IN CURRENT AND UPCOMING PUBLIC INVESTMENT PROJECT

DISTRICT

AMOUNT

UNDER CONSTRUCTION UNION STATION

Warehouse

$79,800,000

GORALEIGH TRANSIT STATION RENOVATION

Moore Square

$9,900,000

Fayetteville Street

$2,000,000

MOORE SQUARE RENOVATION

Moore Square

$12,700,000

CAPITAL BLVD/PEACE ST/WADE AVE EXCHANGE

Capital

$76,000,000

PEACE STREET STREETSCAPE

Glenwood/Capital

$2,000,000

RECENTLY COMPLETED MARKET AND EXCHANGE PLAZA

PROPOSED

TOTAL

$182,400,000

Note: Investments numbers are estimated costs and will likely change during the course of construction

DEVELOPMENT + INVESTMENT | 23

DOWNTOWN DEVELOPMENT

FAYETTEVILLE STREET DISTRICT PROJECT NAME

INVESTMENT

STATUS

DETAILS

107 FAYETTEVILLE STREET

Not Announced

Completed

13,125 SF Renovation

227 FAYETTEVILLE

$8,000,000

Under Construction

101,439 SF Renovation

421 FAYETTEVILLE STREET

$11,000,000

Completed

Office Renovation

BOYLAN-PEARCE BUILDING

$7,500,000

Under Construction

31,820 SF

CHARTER SQUARE

$63,000,000

Completed

243,000 SF

CHARTER SQUARE II

Not Announced

Planned

157,000 SF Office/ Retail, 247 Units

DEATH AND TAXES/BRIDGE CLUB (RESTAURANT)

$3,000,000

Completed

10,000 SF Renovation

EXCHANGE AND MARKET PLAZAS RENOVATION

$2,000,000

Completed

Infrastructure

HILTON GARDEN INN

Not Announced

Planned

244 Hotel Rooms

THE L

$17,000,000

Completed

83 Units, 10,000 SF Retail, 7,400 SF Office

NEWS AND OBSERVER REDEVELOPMENT

Not Announced

Planned

Not Announced

RESIDENCE INN BY MARRIOTT

$20,000,000

Under Construction

175 Hotel Rooms

MOORE SQUARE DISTRICT PROJECT NAME

INVESTMENT

STATUS

DETAILS

BLOUNT AND PERSON STREET CORRIDOR IMPROVEMENTS

$750,000

Planned

Infrastructure

EDISON LOFTS

$40,000,000

Under Construction

223 Apartments

EDISON OFFICE

$75,000,000

Planned

315,000 SF

GORALEIGH TRANSIT STATION RENOVATION

$9,900,000

Under Construction

Infrastructure

THE LINCOLN

$36,500,000

Completed

224 Apartments

MOORE SQUARE RENOVATION

$12,500,000

Planned

Green space Renovation

SKYHOUSE

$60,000,000

Completed

320 Apartments

STONE’S WAREHOUSE RENOVATION

$14,400,000

Planned

Mixed Use

THE TEN AT SOUTH PERSON

$2,500,000

Completed

10 Townhomes

DOWNTOWN DEVELOPMENT

CAPITAL DISTRICT PROJECT NAME

INVESTMENT

STATUS

DETAILS

301 HILLSBOROUGH STREET

Not Announced

Planned

Mixed Use

BLOUNT STREET COMMONS

$8,000,000

Under Construction

46 Townhomes

ELAN CITY CENTER

$30,000,000

Completed

213 Apartments

HOLY TRINITY ANGLICAN CHURCH

$5,500,000

Completed

Place of Worship

PEACE STREET TOWNES

$4,000,000

Completed

17 Townhomes

PEACE STREET/CAPITAL BOULEVARD BRIDGE REALIGNMENT

$76,000,000

Planned

Infrastructure

TAVERNA AGORA

$3,000,000

Completed

8,847 SF

GLENWOOD SOUTH DISTRICT PROJECT NAME

INVESTMENT

STATUS

DETAILS

220 THE SAINT

$7,000,000

Under Construction

17 Townhomes

CAROLINA ALE HOUSE

$7,500,000

Completed

37,000 SF

FORMER GREYHOUND TERMINAL APTS

Not Announced

Planned

250 Apartments

FOUR25 BOYLAN

$35,000,000

Completed

261 Apartments

THE GRAMERCY

$30,000,000

Under Construction

203 Apartments

LINK APARTMENTS

$30,000,000

Completed

203 Apartments

PEACE STREET STREETSCAPE

$2,000,000

Planned

Infrastructure

RALEIGH BEER GARDEN

$2,000,000

Completed

8,670 SF

STATUS

DETAILS

WAREHOUSE DISTRICT PROJECT NAME

INVESTMENT

THE DILLON

$125,000,000

Under Construction

210,000 SF Office, 262 Units, 40,000 SF Retail

DR. PEPPER WAREHOUSE

$3,000,000

Under Construction

14,000 SF

HQ RALEIGH EXPANSION

$9,500,000

Planned

Expansion

MORGAN STREET FOOD HALL

$1,000,000

Planned

15,000 SF Renovation

UNION STATION

$79,800,000

Under Construction

26,000 SF DEVELOPMENT + INVESTMENT | 25

© Carolyn Scott

MAJOR DOWNTOWN EVENTS + FESTIVALS

IMPRINT AWARD WINNERS 107 Fayetteville Street Formerly known as the Lawyers Weekly building, this 13,125 square foot office building was renovated to accommodate start-ups that have outgrown smaller co-working or incubator spaces.

421 Fayetteville Street This 17-story building received an $11 million update from Highwoods Properties, which included redesigning the façade and exterior of the building to include more light and windows, a new lobby, and an improved street-level experience.

Charter Square With over 243,000 square feet, Charter Square brought much needed Class A office space to downtown’s tight office market. At 11 stories, this building provides views up Fayetteville Street and more density to downtown’s southern end.

Death and Taxes/Bridge Club James Beard award winner, Ashley Christensen, opened two new concepts in this historic 1915 building that once housed a funeral parlor and bank. The 9,000+ square foot building was carefully restored by James Goodnight and now houses Death and Taxes, as well as the event space, Bridge Club. Among many features, the restaurant features a wine cellar in a former bank vault and restoration of the historic façade.

Holy Trinity Anglican Church Now towering over Peace Street, this new 24,300 square foot church brought a classic look to the north side of downtown. Though built with a steel frame, the design is reminiscent of colonial churches and features a 130-foot tall steeple.

The L This mixed-use development wraps around an existing parking deck, both improving the aesthetics of the area and adding new density and ground floor retail space with 83 units, 10,000 square feet of retail and 7,400 square feet of office space. The L also provides smaller, efficiency units, allowing tenants to live in downtown at lower monthly rents.

Source: DRA, All Photos by Flyboy Photography

The Lincoln This 224-unit apartment complex adds substantial density to the east side of downtown and Moore Square. The complex features numerous amenities including a swimming pool, game room, fitness center, and on-site parking.

Peace Street Townes A collection of 17 townhomes brought neighborhood-sized development and design to Peace Street. These townhomes, featuring modern amenities such as rooftop decks and energy efficient finishings, sold out quickly.

Raleigh Beer Garden A Guinness World Record holder for world’s largest selection of draft beers, the Raleigh Beer Garden has over 350+ taps of local, national and international beer. The space includes a large roof deck, displays of nitrous tanks, and a large, reassembled, indoor tree.

SkyHouse With 320 units in a 23-story tower, SkyHouse is unlike any other multi-family product in the Triangle. Providing floor-to-ceiling windows with sweeping views of downtown and a rooftop pool and amenity lounge, SkyHouse redefines luxury apartment living in downtown and leased quickly.

Taverna Agora A $3 million renovation that includes two stories of dining area, extensive woodwork, and a large, landscaped rooftop patio that is one of downtown’s finest outdoor dining experiences.

The Ten at South Person This 10-unit townhome development offers more affordable units with sleek modern architecture, including skylights, floating stairs and garages.

These units sold out quickly demonstrating the appeal and interest in this type of housing.

DEVELOPMENT + INVESTMENT | 27

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

Future Planning + Public Investment With several thousand new residents and office workers coming to downtown over the next few years, the future is bright for downtown Raleigh. Today, downtown Raleigh looks very different with greater density and vibrancy than a decade ago. Downtown’s revitalization came together through a mixture of strategic public investments, pioneering developers, a vibrant arts and cultural scene, along with residents and business owners seeking to build a community in an urban core. The future of downtown looks to build off that base and create a true, vibrant center with its best years ahead.

$1.1 billion private development pipeline

$182+ million

$79.8 million new multi-modal transit

320 acres of parks being added plus another

Bike Share

New 10-year vision

with $850 million under construction or planned

station under construction

to add 30 stations and 300

bicycles around the city

in public investment

34 acres being renovated in downtown area

with Downtown Plan

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, page 63).

•E xpand on existing downtown Raleigh retail strategy to target local, authentic retailers.

• I dentify a toolkit for retail recruitment, such as a retailspecific grant or incentive, to assist new retailers.

• Explore partnerships to recruit a grocery store or other neighborhood services.

• Target specific locations for retail incentive area with streetscape improvements and improved wayfinding, public art and parklets.

• Encourage pop-up shops, food trucks, and mobile vendors to activate more isolated parts of retail corridors.

FUTURE PLANNING + PUBLIC INVESTMENT | 29

DOWNTOWN PLAN

DOWNTOWN PLAN The City of Raleigh and the Downtown Raleigh Alliance partnered to create a 10-year plan for downtown Raleigh, which builds off the successes downtown experienced in recent years. The 2003 Livable Streets Plan brought new life to downtown with the reopening of Fayetteville Street and construction of a new convention center. Much like that plan, the Downtown 2025 Experience Plan provides a new map for guiding growth and development in downtown and addresses both opportunities and challenges facing downtown over the next decade.

Several of the next big project ideas are already planned

or underway, such as Raleigh Union Station, the renovation of Moore Square and the adjacent transit center. This plan not only includes those projects, but seeks to connect them with broader themes and ideas for downtown’s future, which 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.

The plan embeds these actions within four broad themes, Breathe, Move, Stay, and Link with each theme given a physical form through catalytic projects to help transform Raleigh’s urban core.

BREATHE // A Greener Raleigh: Parks and Greenways 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: •R enovation of existing parks such as historic Moore and Nash Squares.

•B uild new parks and green spaces in downtown such as Dix Park and Devereux Meadows.

• Extend the greenway system to better connect downtown’s green space.

• Create a sustainable funding and governance structure for the acquisition, creation and maintenance of downtown parks.

DOWNTOWN PLAN

MOVE // Connectivity: Downtown Bike Circuit

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 network.

•P roviding on- and off-street bicycle facilities and infrastructure to link downtown’s districts and major cycling routes into the rest of the city.

•E nhance transit service through service improvements, such as route consolidation, increased frequency, an improved R-LINE and upgraded passenger amenities.

•A ccommodate automobile use through a multi-modal grid of complete streets, as well as on- and off-street parking facilities in areas of high demand.

Source: City of Raleigh

FUTURE PLANNING + PUBLIC INVESTMENT | 31

DOWNTOWN PLAN

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.

•E nsuring downtown remains clean and hospitable.

•E ncourage the development of vacant and underbuilt sites to fill the entire downtown with active uses.

•C reate a robust retail environment in downtown to include a combination of local and destination retail.

•E nsure downtown has a diversity of housing opportunities at different price points.

•P artner with non-profits and Wake County to address homelessness and work to secure housing for the homeless population.

LINK NETWORK & PARTNER

LINK // Network and Partner The goal of “Link” is to align with institutional, public, and private partners to bring downtown’s shared vision to life. This theme supports the entire vision by putting partnerships at the center of implementation.

•P artner with public agencies, downtown universities, local nonprofits, and the private sector on key initiatives and projects from the Downtown Plan.

• Includes working with the state government on the Capital District, Shaw University and William Peace University on their goals for their campuses and properties, DRA on retail recruitment, and private property owners with key buildings or land to help unlock downtown’s potential.

Source: City of Raleigh

DOWNTOWN PLAN

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 city-owned property.

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.

Source: City of Raleigh

FUTURE PLANNING + PUBLIC INVESTMENT | 33

DOWNTOWN PLAN

SEABOARD/PERSON STREET (NORTH END) 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 HALIFAX PARK neighborhoods like Oakwood and Glenwood South.

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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.

Source: City of Raleigh

DOWNTOWN PLAN

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 retail-oriented uses, and connecting Raleigh Union Station to the rest of downtown are all a part of this project area’s vision.

RALEIGH UNION STATION This $79.8 million project will transform downtown’s Warehouse District and the city, as a whole, by providing a top-notch transit facility to move thousands of riders and visitors each day. Not only will this project dramatically improve Raleigh’s transit facilities and help the connectivity of downtown to the rest of the city

Source: City of Raleigh

and region, but also could stimulate transit-oriented development in the Warehouse District. The first phase of the project, the passenger rail facility, will be housed in a renovated Dillon Supply Warehouse building located at 510 W. Martin Street with construction beginning mid-2015 and completion scheduled for 2017.

FUTURE PLANNING + PUBLIC INVESTMENT | 35

© Flyboy Photography

© Flyboy Photography

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

GREEN SPACE

Moore Square Over the next two years, the Moore Square area will see significant public investment through the renovation of the historic square and the adjacent transit center.

Moore Square itself will receive a $12 million renovation to reinvigorate one of Raleigh’s original historic squares dating to the city’s 1792 master plan. The GoRaleigh Transit Station, which is the primary hub for Raleigh’s bus system, is in the midst of a $9 million renovation to better meet short- and long-term service needs for the transit system and make the station safer, more attractive, and more welcoming for visitors. Construction for both projects is expected to begin and be completed in 20162017.

Dix Park With sweeping views of the downtown skyline, this 308acre site south of downtown, which was a former state psychiatric hospital campus, is expected to become a central destination park for residents and visitors to Raleigh. The city has purchased the land and is beginning its planning process for the park.

Raleigh Bike Share City leaders recently approved a bike share system consisting of 30 stations and 300 bicycles to provide more cycling options for residents, visitors, and students when traveling throughout downtown and the city. This system helps connect riders with destinations within downtown and other parts of the city, such as the North Carolina Museum of Art, while improving public health, complementing the city’s public transportation network, and serving as an economic development tool for attracting more talent and companies to Raleigh.

Peace Street/Wade Avenue Bridge Replacements on Capital Boulevard North Carolina Department of Transportation will replace bridges on the north side of downtown and reconfigure several major intersections to improve safety and connectivity into and out of downtown. This project is estimated to cost $76 million and is expected to start in 2016.

Conversion of two-way streets Several downtown streets are being converted from one-way to two-way traffic to improve downtown connectivity and the pedestrian experience. Lenoir and South streets began conversion in mid-2015 with Lane and Jones streets slated for conversion in the near future.

FUTURE PLANNING + PUBLIC INVESTMENT | 37

© Carolyn Scott

MAJOR DOWNTOWN EVENTS + FESTIVALS

Living Downtown boasts 2,850+ residential units recently delivered, under construction or planned with 1,377 units completed since the start of 2015, 736 units under construction, and 780+ units planned.

The average occupancy of new apartment buildings opened in first half of 2015 is an impressive 85%.

780 units recently added within two blocks of Moore Square

934 units recently added/ planned within three blocks of Glenwood Avenue

More than 80% increase in the number of housing units in downtown

Median rent per square foot for multifamily: $1.81 per SF1

4.8% Average asking rent: $1,432 per month for Class A multi-family in downtown, $1,344 for all apartment complexes within two miles of downtown² ¹Kwelia ²Integra Realty Resources

6% vacancy rate for multi-family apartments within one mile of downtown area overall (not in lease-up phase)²

4.8% vacancy rate for multi-family apartment Class A buildings (not in lease-up phase)²

Over 2 million square feet already delivered or under construction

LIVING | 39

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

RESIDENTIAL | UNITS RECENTLY DELIVERED, UNDER CONSTRUCTION AND PLANNED BY DISTRICT

Capital Warehouse

9%

18%

Moore Square

Fayetteville Street

28%

12%

Glenwood South 33%

Source: DRA

“Living downtown, I save 30 minutes to an hour a day with no commute so I gain time for work, for running, or anything else I want to do. But I mainly live downtown because it’s more fun. My wife and I walk to bars, restaurants, street festivals and live shows that we just wouldn’t go to if we didn’t live nearby.”

-DAVID MEEKER, DOWNTOWN RESIDENT

HOTELS

DOWNTOWN BUILDING BOOM | DOWNTOWN HOUSING UNIT POPULATION AND GROWTH Downtown Raleigh already has double the number of housing units in 2000 and is poised to have triple that number by 2020, if the current pipeline of residential projects is built out. Currently, downtown has just under 4,000 units and will have approximately 5,500 units by the end of the decade.

Housing Units

Population

10,000

8,000

6,000

4,000

2,000

0 2000

Source: U.S. Census

2010

2015

2020 LIVING | 41

ON THE MAP | RESIDENTIAL PROJECTS

440

1

PERSON ST

70

CAPITAL BLVD

GLENWOOD AVE

440

40

401

SEABOARD/PERSON STREET DISTRICT

WILLIAM PEACE UNIVERSITY

RDU AIRPORT PEACE ST

BOUNDARY ST

14

3

PELL ST

EUCLID ST

7

JOHNSON ST

9 POLK ST TUCKER ST

10

OAKWOOD AVE

LANE ST

LANE ST

8

JONES ST

BLOUNT ST

13

MCDOWELL ST

1

SALISBURY ST

NORTH ST

DAWSON ST

NORTH ST

JONES ST

CAMPBELL SCHOOL OF LAW

EDENTON ST 440

HILLSBOROUGH ST

440

NEW BERN AVE

2

STATE CAPITOL BUILDING

NASH SQUARE

MOORE SQUARE BUS TERMINAL

MOORE SQUARE

DAVIE ST

4

WEST ST

CABARRUS ST RALEIGH CONVENTION CENTER

16 LENOIR ST

STE R

LVD

440

40

70

T YS UR

ISB

NB

L SA

WE

WILMINGTON ST

SAUNDERS ST

SOUTH ST DUKE ENERGY CENTER FOR PERFORMING ARTS

SHAW UNIVERSITY

MARTIN LUTHER KING JR BLVD

12

CHAVIS WAY

BLOODWORTH ST

15 6

11

HARGETT ST

EAST ST

MARTIN ST

PERSON ST

5

HARRINGTON ST

FUTURE SITE OF UNION STATION

FAYETTEVILLE ST

WEST ST

HARGETT ST

64

MORGAN ST

HOTELS

© Carolyn Scott

RESIDENTIAL | PROJECTS UNDER CONSTRUCTION/OPEN/PLANNED

PROJECT

UNITS

INVESTMENT

TYPE

DISTRICT

EXPECTED TO OPEN

1

220 THE SAINT

17

$7 million

Townhomes

Glenwood South

2017

2

301 HILLSBOROUGH STREET

N/A

$150 million+ (mixed use)

Not Announced

Capital

2018

3

BLOUNT STREET COMMONS

46

$8 million

Townhomes

Capital

Open

4

CHARTER SQUARE II

247

Not Announced

Apartment

Fayetteville Street

Planned

5

THE DILLON

262

$125 million+ (mixed use)

Apartment

Warehouse District

2018

6

THE EDISON APARTMENTS

223

$40 million

Apartment

Moore Square

2016

7

ELAN CITY CENTER

213

$30 million

Apartment

Capital

Open

8

FORMER GREYHOUND TERMINAL APTS

250

Not Announced

Apartment

Glenwood South

2017/18

9

FOUR25 DEVON

261

$35 million

Apartment

Glenwood South

Open

10

THE GRAMERCY

203

$30 million

Apartment

Glenwood South

2016

11

THE L

83

$17 million (mixed use)

Apartment

Fayetteville Street

Open

12

THE LINCOLN

224

$36 million

Apartment

Moore Square

Open

13

LINK APARTMENTS

203

$30 million

Apartment

Glenwood South

Open

14

PEACE STREET TOWNES

17

$4 million

Townhomes

Capital

Open

15

SKYHOUSE

320

$60 million

Apartment

Moore Square

Open

16

THE TEN AT SOUTH PERSON

10

$2.4 million

Townhomes

Moore Square

Open LIVING | 43

Š Flyboy Photography

#2

Best Large City to Live In: Raleigh, North Carolina WalletHub | August 2015

DOWNTOWN BUILDING BOOM | HOUSING CONSTRUCTION IN CBDS (recently delivered, planned, under construction) Downtowns across the U.S. are seeing major booms in housing construction in their CBDs with downtown Raleigh keeping pace.

6,000 5,000 4,000 3,000 2,000 1,000 0

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Sources: City of Austin, Nashville Downtown Partnership, Richmond Times Dispatch, Downtown Memphis Commission, Charlotte Center City Partners, Central Atlanta Progress, Upstate Business Journal, Downtown Phoenix Inc, Pittsburgh Downtown Partnership, Minneapolis Star Tribune, U.S. Census.

GROWTH IN HOUSING UNITS (CBD ONLY) Downtown Raleigh is among the leaders for the largest percentage of growth in housing units for 2015-2018 based on delivered, under construction and proposed units.

160% 140% 120% 100% 80% 60% 40% 20% 0%

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Sources: City of Austin, Nashville Downtown Partnership, Richmond Times Dispatch, Downtown Memphis Commission, Charlotte Center City Partners, Central Atlanta Progress, Upstate Business

LIVING | 45

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

AVERAGE RENT AND RENT PER SQUARE FOOT Downtown Raleigh’s multi-family apartment market is booming with low vacancy rates driving the demand.

For multi-family apartment buildings within downtown, the vacancy rate is a mere 4.8%, while the vacancy rate for all apartment buildings within 1.5 miles of downtown is 6% and the vacancy rate for Class A apartments within 1.5 miles of downtown is 6.4%. (These numbers do not include new buildings delivered in 2015 currently in their lease-up phase.)

MULTI-FAMILY APARTMENT VACANCY 8% 6% 4% 2% 0% Downtown MSD Class A

Greater Downtown Class A

Greater Downtown Class A/B/C

Greater Downtown B/C

Triangle Average

*Note: “Greater Downtown” refers to apartments within 1.5 miles of downtown.

Source: Intregra Realty Resources, Colliers (for regional average)

NEED FOR AFFORDABLE OPTIONS The vacancy rate for Class B/C apartments within 1.5 miles of downtown is 3.2%, indicating a strong demand for affordable options in and near downtown. Affordable housing, though, increasingly will become an issue as downtown’s new housing supply is mostly priced on the higher end of the multi-family market in the Triangle and median rent per square foot is expected to increase. Furthermore, with little existing supply in downtown built before 2000 and a rapidly increasing population in the city and region, most of the current apartments that may decline in value due to new supply will likely not be in the CBD.

HOTELS

AVERAGE RENT FOR DOWNTOWN MULTI-FAMILY APARTMENTS Average rent for downtown multi-family developments is $1,432, including new units, while rent is $1,345 for apartments pre-dating 2015. The average rent for apartments within 1.5 miles of downtown is $1,344, including all classes of multifamily apartments.

Average Rent With New Units

Average Rent with Existing Units

$1,500 $1,450 $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 Downtown MSD Class A

Greater Downtown Class A/B/C

Greater Downtown Class A

*Note: “Greater Downtown” refers to apartments within 1.5 miles of downtown.

Sources: Integra Realty Resources

MEDIAN RENT PER SQUARE FOOT AND PERCENT CHANGE IN RENT SINCE 2014 (CBD ONLY) 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 in the north, have median rents well above $2.00 per square foot.

Median rent per SF

% change in rent per SF

30%

$4.00 $3.50

25%

$3.00 20%

$2.50 $2.00

15%

$1.50

10%

$1.00 5%

$.50 $0

0%

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LIVING | 47

© Flyboy Photograhy

MAJOR DOWNTOWN EVENTS + FESTIVALS

Office, Innovation + 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.

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

Educated and Talented Workforce

New Companies Starting and Locating in Raleigh

Increasing Demand for New Office Space

OFFICE MARKET | VACANCY RATES/SPACE 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.

10.6% 10.6% vacancy rate, 1.3% below average for Triangle region

60,000+ square feet in co-working space at HQ Raleigh, Industrious and The Nest with more on the way

•O ver 1,000,000 square feet of Class A space planned/ under construction •M ore than 6 million square feet of privately-owned office space in 110-block CBD and over 5.7 million square feet of government office space

$300+ million planned with $90+ million in current and recently completed office construction

• Over 400,000 square feet of new/renovated Class A office space on Fayetteville Street at new Charter Square and renovated 421 Fayetteville Street and 227 Fayetteville •D ensest office market in Triangle with more office space and employees per acre than any other submarket OFFICE, INNOVATION + TALENT | 49

© Flyboy Photograhy

“The downtown Raleigh market has transformed substantially over the past 10 years, and we believe that the downtown market will not only continue to grow, but will begin to grow at a faster pace. The city’s infrastructure and urban planning are designed for an 18-hour city, and we believe that downtown Raleigh is in the early stages of that transformation.” - RYAN BLAIR, HERITAGE PROPERTIES, DEVELOPER OF ONE GLENWOOD

VACANCY RATES FOR SUB-MARKETS IN THE TRIANGLE REGION Downtown’s vacancy rate is at 10.6% after new supply came onto the market in 2015 to respond to single-digit vacancy rates over the previous few years.

25% 20%

15% 10%

5%

Sources: Avison Young, JLL, 4th Quarter 2015

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OFFICE

UPCOMING OFFICE PROJECTS | OVER 1.1 MILLION SQUARE FEET OF NEW CLASS A OFFICE SPACE UNDER CONSTRUCTION OR PLANNED

227 Fayetteville

The Edison Office

• Renovation of office building in heart of Fayetteville Street • 101,000 square feet of Class A office space • Tenants already moving into space

• • • •

315,000 square feet $75 million 19 stories, 290 foot tower Construction planned to begin in 2016

Charter Square II One Glenwood • • • • •

157,000 square feet office/retail $100 million+ Class A office space with ground floor retail 22 stories 247 apartment units

• • • •

219,000 square feet with 14,500 square feet as retail space 10 stories Located between Glenwood South and Warehouse District Delivery in 2018

The Dillon

HQ Raleigh expansion

• • • • •

•R enovation and expansion of an existing, adjacent building in Warehouse District • Adds significant amount of new space for incubators and start-ups • Expected delivery in 2017

210,000 square feet Class A office space 40,000 square feet of retail and 260+ apartment units $150 million+ Tower built within footprint of existing warehouse Delivery 2018

COMPARISON OF CLASS A RENTAL RATES IN TRIANGLE SUBMARKETS Strong and increasing demand from the technology and innovation sector, plus low vacancy rates, have pushed Class A rental rates higher in downtown Raleigh relative to other submarkets in the Triangle.

$30 $25 $20 $15 $10 $5

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Source: Collier’s, JLL, 4th Quarter 2015

OFFICE, INNOVATION + TALENT | 51

Š Tierney Farrell

MAJOR DOWNTOWN EVENTS + FESTIVALS

CLASS A AND OVERALL AVERAGE OFFICE RENT PER SQUARE FOOT 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 the southern U.S. Class A Rate Only

Overall Rate

Washington DC Houston Austin Philadelphia Charlotte Raleigh Nashville Orlando Richmond Columbia Atlanta $0.00

Source: Colliers, JLL

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

EMPLOYMENT

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

Over 45,000 employees

30% growth in employees in past decade

Over 600 companies with offices downtown

2015-2030 PROJECTED EMPLOYMENT GROWTH Downtown is home to over 45,000 employees across all sectors and is projected to add 11,500 office and service employees between 2015 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 COMPANY

STATE OF NORTH CAROLINA DUKE ENERGY WAKE COUNTY GOVERNMENT

11,500

CITY OF RALEIGH RED HAT, INC. CITRIX

45,000

PNC BANK MCCLATCHY/NEWS AND OBSERVER 2015

EMPIRE EATS/EMPIRE PROPERTIES

2030 Growth

SHAW UNIVERSITY

Source: HR&A, CAMPO, DRA, U.S. Census

DOWNTOWN COMPANIES | RECENT MOVES/EXPANSIONS IN DOWNTOWN 6FUSION

HOLT BROTHERS

PHOTOFY

CBRE

INDUSTRIOUS

POLSINELLI

COHERA MEDICAL

KIMLEY-HORN

RMSOURCE

DISTIL NETWORK

MCCLATCHY INTERACTIVE

SPECTRAFORCE/LEOFORCE

FILTEREASY

PENDO

VITAL SOURCE

GUIDEBOOK

PERSONIFY OFFICE, INNOVATION + TALENT | 53

EMPLOYMENT

GROWTH IN EMPLOYEES SINCE 2006

AVERAGE EMPLOYEES PER ACRE (SUBMARKETS)

35%

50 45

30%

40 25%

35 30

20%

25 15%

20 15

10%

10

5%

5

Source: U.S. Census, Center for Economic Studies

D ow D nto ur w ha n m

C ar y

H ill s N or th

A re a RT P

D ow Ra nto le wn ig h

U .S .

A re a RT P

M or ris vi lle

C ar y

0 (c R ity ale w ig id h e)

D ow Ra nto le wn ig h

0%

Sources: ESRI Business Analyst, DDI, Research Triangle Park, U.S. Census Bureau: Center for Economic Studies

“The decision to relocate Cohera Medical, Inc® to North Carolina, Raleigh in particular and ultimately downtown, was in large part due to accessibility to a talented people. Downtown is a central location and provides a vibrant and enjoyable area to work.” – PATRICK DALY, COHERA MEDICAL, A MEDICAL ADHESIVES FIRM MOVING ITS HEADQUARTERS FROM PITTSBURGH TO DOWNTOWN RALEIGH

EMPLOYMENT HUB | SCIENCE, TECHNOLOGY, ENGINEERING + MATH (STEM) HIGH IN REGION

#1

in STEM Employment Growth

#3

best region for STEM professionals in the nation

#4

in percentage of all workers in STEM jobs

#5

in job openings per capita for STEM graduates

Source: WalletHub, Jan. 2015

#2 City Creating the

Most Technology Jobs in 2015 (Forbes, April 2015)

© Carolyn Scott

EMPLOYMENT

RALEIGH-CARY METROPOLITAN AREA HAS:

84%

higher share of employees in computer and mathematical occupations

61%

189%

higher share of employees in life, physical and social science occupations

134%

higher share of software and app developers

higher share of civil engineers

compared to the U.S. workforce, as a whole.

Source: U.S. Bureau of Labor Statistics “May 2014 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates”

EMPLOYMENT | DOWNTOWN EMPLOYMENT BY SECTOR 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.

Government Professional Scientific & Tech Services Accommodation & Food Services Other Services Utilities Administrative, Support & Waste Mgmt.

Retail Construction Education Health Care Information Misc.

0%

5%

10%

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

15%

20%

25%

30%

35%

40%

45%

50%

55%

OFFICE, INNOVATION + TALENT | 55

© Monica Slaney

MAJOR DOWNTOWN EVENTS + FESTIVALS

“We’re proud to be headquartered in downtown Raleigh and think it’s an asset as we grow our company. Like any high-growth technology company, one of the key challenges is attracting talent. Raleigh is a vibrant, fast-paced mid-sized metropolitan environment. It offers a lot in terms of nightlife, food, cultural events and access to strong education—yet is still very affordable. These characteristics make Raleigh an attractive place to live and help us recruit regionally and nationally. Lastly, the influx of companies like Red Hat, Citrix, and HQ Raleigh has brought more technology workers to downtown improving the climate for building a high-growth technology company.”

-TODD OLSON, PENDO

© Flyboy Photograhy

© Tierney Farrell

© Carolyn Scott

INCUBATORS + INNOVATION Downtown Raleigh’s technology and innovation sector is enjoying rapid growth in both major companies and start-ups and has the density necessary to build a strong ecosystem for attracting and incubating more companies on the cutting edge of innovation.

Raleigh named #1 “Hot Spot” for Tech Start-ups and Workers

(Outside Silicon Valley) Selfstorage.com, March 2015

•A dditional co-working offices for growing start-ups recently opened include Industrious and The Nest.

• I n the last five years, start-ups in Raleigh raised over $310 million in Venture Capital and Angel investment and generated economic activity of over $1.1 billion from IPOs and $9.2 billion in acquisitions.¹ •T ech companies expanding in downtown include Pendo, Wedpics, and Spectraforce.

•R aleigh is home to more than 500 start-up companies, totaling 2,500 jobs.

• Number of start-ups at HQ Raleigh has grown over 150% since 2012.

• Citrix, Red Hat, and Ipreo added over 2,000 tech employees to downtown in the past four years with all three poised to expand in the future.

• HQ Raleigh is home to over 140 start-ups and is expanding in the Warehouse District in 2017.

• Ultra-fast internet service is coming to the Triangle with AT&T U-verse with Gigapower—already in service—and Google Fiber, which is opening an office in downtown’s Glenwood South district

START-UP SPOTLIGHT // PENDO Pendo is a cloud-based software start-up to help companies improve their software by providing feedback on which features are being used or ignored by customers. North Carolina Technology Association recently named Pendo a “top 10 start-up to watch.” The company is expanding in downtown Raleigh’s Warehouse District, adding to the start-up culture in that area. The company has experienced significant growth since their launch and plans to continue that growth in the coming years:

•P endo plans to more than triple staff with expectations of 60-70 employees.

•T racks more than 1 billion actions by software users per month.

• Monthly revenue growth averaging 30%.

• Raised $11 million in new funding.

¹City of Raleigh Economic Development

OFFICE, INNOVATION + TALENT | 57

© Cheryl Gottschall

MAJOR DOWNTOWN EVENTS + FESTIVALS

TALENT One of the major reasons for downtown’s rising profile as a tech hub and 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. Approximately 100,000 students attend universities in the Triangle, providing cutting edge research and a well-trained workforce. In addition to the strong academic institutions near downtown, the region boasts other prestigious universities:

N.C. State: • 4th in Best Overall Public University Value¹ •8 th Among all U.S. Engineering Colleges in Number of B.S. Degrees Awarded² Peace University: • #1 nationally for student internships3 Meredith College: • 6th among South’s Best Regional Colleges3 Shaw University: •F irst historically Black institution of higher education in the south and among the oldest in the nation

Approximately 100,000 students attend universities in the Triangle, 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: University of North Carolina at Chapel Hill: •# 5 Top Public University in the nation3 Duke University: • #8 Overall Top University in the nation3 N.C. Central: •# 12 Top Historically Black Colleges and Universities3

St. Augustine’s University: •R anked in Top 50 Historically Black Colleges and Universities3 ¹Princeton Review ²American Association of Engineering Education ³U.S. News & World Report

HIGHER EDUCATION

Three Tier-1 Research Universities in one region: $2.5 Billion in combined Research and Development expenditures in 2014 by Duke, UNC and N.C. State.¹

HIGHER EDUCATION INSTITUTIONS (within three miles of downtown)

NUMBER OF STEM GRADUATES AS A SHARE OF POPULATION (AGES 20-34)

TOTAL ENROLLMENT

NORTH CAROLINA STATE UNIVERSITY

34,015

MEREDITH COLLEGE

1,949

SHAW UNIVERSITY

1,656

WILLIAM PEACE UNIVERSITY

1,076

SAINT AUGUSTINE’S UNIVERSITY

1,064

CAMPBELL UNIVERSITY SCHOOL OF LAW

426

The Raleigh-Cary 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

40,186

0% [ Source: Brookings Institute, Burning Glass ]

EDUCATIONAL ATTAINMENT FOR POPULATION 25 YEARS+ Downtown has a higher share of residents with bachelor and graduate degrees than the state and national proportions.

43% of downtown Raleigh residents 25 years and older have

a bachelor’s degree or higher, compared to 28% of North Carolinians and 30% of Americans.

10%

16%

8% 28%

43%

12%

20%

Downtown Raleigh Bachelors and Above

30%

24%

25%

23%

22%

North Carolina Some College/Associates Degree

U.S. High School Diploma

Less Than High School

[ Source: U.S. Census ]

¹National Science Foundation

OFFICE, INNOVATION + TALENT | 59

© Carolyn Scott

MAJOR DOWNTOWN EVENTS + FESTIVALS

Photo Courtesy of Ramble Supply Co. | 123 E. Martin Street

Shopping “Downtown Raleigh has this great energy right now. You can feel that it’s on the brink of some really amazing things, from development to the creative community that surrounds it. I’ve met the most supportive people that are excited about the growth and are willing to collaborate in order to build a stronger community.” – JESSIE CONNOR, RAMBLE SUPPLY CO.

POP-UP STORES Downtown saw the launch of a successful pop-up store, Flight, and several other smaller pop-ups within existing stores and businesses, which helped activate storefronts and incubate new retail concepts. © Tufshot Photography

5%

34 39%: Growth in its retail base since 2010, which is the largest growth in any storefront use for downtown

34 new stores opened since 2010, nearly all of which are independent, locally-owned retailers

$42 million in retail spending estimated to be captured by downtown retailers with future growth out of $200+ million in potential retail spending by downtown residents, workers and visitors.¹

¹HR&A Advisors

10 new stores added since the beginning of 2015 with more on the way. Six new stores also awarded retail up-fit grants from DRA

5% vacancy rate for leasable downtown retail space

Over 150,000 square feet of ground floor retail space planned or under construction

SHOPPING | 61

MAJOR DOWNTOWN EVENTS + FESTIVALS

Photo Courtesy of Port of Raleigh

“As a resident of downtown, I did not, for a second, consider opening Port of Raleigh anywhere else; I wanted to invest in a place that I love and believe in. I feel like people are excited to live, work and play here because they know that just by doing either (or all three!) they’re contributing to the positive energy and growth of the neighborhood. We all know the potential and every day that a new resident moves in, and a new business opens, we get closer to that shared vision of a diversified, vibrant and active downtown that more wholly meets the wants and needs of residents and visitors alike.” –ANA MARIA MUNOZ, PORT OF RALEIGH

2010-2016 | PERCENTAGE OF NET GAIN IN BUSINESSES BY STOREFRONT CLASSIFICATION

#3 Metro for

Economic Growth (Raleigh-Durham) Business Facilities | August 2015

40%

39%

35% 30% 25%

24%

20%

26%

17%

15% 10% 5% 0% Retail Source: DRA

Dining

Nightlife

Personal Services

RETAIL | A SHOPPING DESTINATION

© Tierney Farrell

RETAIL DEMAND | EMERGING CLUSTERS

Downtown is home to emerging retail clusters in home furnishings, gifts, fashion and goods from local makers along with new retail providing everyday goods, such as hardware and pet supplies, which help make downtown more livable. New stores added since late 2014: •P ort of Raleigh, Gypsy Jule, Runologie, Ramble Supply Co., Edge of Urge, House of Swank, Devolve Moto, Briggs Hardware, Unleashed: A Dog and Cat Store, Holder Goods and Crafts, Gather, Retro Modern Furnishings •E xisting stores provide an eclectic mix of goods from locally-oriented gifts at Deco Raleigh to makers like Videri Chocolate Factory, Designbox, Oak City Coffee Roasters and nationally acclaimed Raleigh Denim to fashion at High Cotton, Lumina Clothing, Nora and Nicky’s, Social Status and Dogwood Collective to accessories at Moon and Lola, Feelgoodz, Holly Aiken’s Stitch, to vintage everything at Father and Son, wine at The Raleigh Wine Shop and The Wine Feed, and music at Sorry State Records

The average downtown worker spends $135 per week on retail purchases (excluding online purchases and transportation costs).¹

FUTURE RETAIL DEMAND | GROWING NEED FOR MORE STORES As downtown continues to grow, demand for more retail will attract even more 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 $165 million in total future potential retail sales. An estimated $42 million

of that spending potential could be captured by downtown and support thousands of square feet of new retail. These projections demonstrate the priority to continue bringing new stores downtown and broaden the retail base to reduce sales leakage and meet the growing demand to provide more stores and services in the CBD.

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

Future Spending Estimated to be captured by Downtown

RETAIL

$165 million

$42 million

GROCERY

$49 million

$20 million

Source: HR&A Advisors

¹ICSC Office-Worker Retail Spending in a Digital Age, 2012

SHOPPING | 63

RETAIL

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

1:30 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

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)

NEW DRA RETAIL INITIATIVES | PARTNERING TO START AND RETAIN RETAIL Retail Up-fit Grant: In 2015, DRA introduced a grant for new retailers to aid with their interior up-fit costs as a way of getting new stores off to a faster start and helping with one of the largest early costs for new businesses. So far, DRA has awarded $24,000 in six grants to new stores, including a pharmacy, pet store and hardware store that have helped fill gaps in downtown’s retail mix and build new clusters in downtown’s retail sector.

Pop-up Retail: For the 2015 holiday season, DRA helped create a new pop-up shop called Flight in a vacant storefront in downtown. The store was a partnership between two existing retailers, Deco Raleigh and Edge of Urge, with 10% of sales going towards a fund for creative urban art projects. Pop-up retail helps activate storefronts and incubate new retail concepts for downtown. Other pop-ups are also emerging in existing businesses as ways to drive new traffic to those stores.

Downtown Raleigh App: DRA unveiled its new App, which includes parking information, along with store locations and advertising opportunities. This app makes downtown easier to navigate for shoppers, identifies the nearest parking for all destinations and allows merchants to advertise deals and specials.

RETAIL

DRA RETAIL DEVELOPMENT INITIATIVES | IMPROVING DOWNTOWN’S RETAIL ENVIRONMENT

© Carolyn Scott

© Carolyn Scott

Courtesy of Quercus

Courtesy of Retro Modern Furnishings

As part of its role as the primary retail recruiter for the downtown services district, the Downtown Raleigh Alliance has a number of initiatives to maintain and improve our retail base.

Recruiting retail prospects: DRA identifies and connects with retail prospects and brokers to bring them to the downtown market. Our assistance includes helping identify locations, connecting with brokers and landlords, and providing resources for business planning, market data, tours, and guidance. DRA recruits a wide range of prospects from small boutiques to national retailers and grocery stores.

Shop Downtown Raleigh: This program helps promote downtown as a shopping destination through coordinated promotions and events, along with a stand-alone website devoted to downtown shopping. Downtown retailers also participate on a committee to strategize on new efforts and address common challenges.

Storefront Inventory: DRA conducts periodic, comprehensive surveys of all downtown storefronts to identify trends in vacancies, business mix, openings and closings. This analysis improves our targeting and recruitment of stores.

Collecting, maintaining and analyzing data related to retail: DRA provides client-specific recruitment materials, including data and analysis on specific markets or locations. DRA has added a more data-driven approach, including sales leakage and market share information, and comparative statistics, all of which are targeted at specific types of retailers missing from our market. DRA also conducts pedestrian counts, surveys of retail sales and traffic data, and other useful data collection tools to help monitor the retail market and develop business plans for new retailers.

LOCATION

FUTURE GROUND FLOOR RETAIL SPACE

THE EDISON LOFTS

14,000+ SF of retail space opening mid-2016 on ground floor of 223-unit apartment building

THE DILLON

40,000+ SF in Warehouse District

ONE GLENWOOD

14,500 SF in Glenwood South

NEWS & OBSERVER

Redevelopment ground floor retail at corner of Martin and Salisbury Streets

CHARTER SQUARE II

Ground floor of 22-story tower on Fayetteville Street

301 HILLSBOROUGH STREET

Substantial ground floor retail on 300 block of Hillsborough Street

MORGAN STREET FOOD HALL

15,000+ SF of renovated warehouse to incubate small retailers inside a large hall, alongside small food vendors

STONE’S WAREHOUSE

42,000 SF of space for makers, food producers, vendors, retail in renovated and expanded historic warehouse space

SHOPPING | 65

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

Dining + Nightlife Downtown Raleigh has become a major food destination regionally and nationally with over 130 dining establishments providing a broad range of

© Flyboy Photography

cuisines and experiences.

JAMES BEARD AWARD | ASHLEY CHRISTENSEN

Another acclaimed restaurant group, Empire Eats, brings thousands of visitors to downtown with a wide range of cuisines including Lebanese at Sitti, Italian at Gravy, North

downtown empire with the opening of Death and Taxes and Bridge Club in a restored, historic building with Death and Taxes being nominated as a finalist for the James Beard Award for Best New Restaurant in the U.S.

© Tierney Farrell

Additionally, Scott Crawford of Standard Foods was a semi-finalist for Best Chef in the Southeast for 2015.

© Tierney Farrell

© Carolyn Scott

© Tierney Farrell

© Tierney Farrell

In 2014, one of downtown’s most prominent chefs and restaurateurs received the highest culinary award in the country with the James Beard Award for Best Chef in the Southeast going to Ashley Christensen, who owns five establishments downtown with Poole’s Diner, Beasley’s Chicken and Honey, Chuck’s, Joule Coffee & Table, and Fox Liquor Bar. In 2015, Christensen added to her

Carolina BBQ at The Pit, and neighborhood gathering spots at The Raleigh Times and Morning Times.

DINING + NIGHTLIFE | 67

© Flyboy Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

This past year saw the addition of more local, authentic concepts with well-regarded chefs and restaurants choosing to open in downtown like more., Standard Foods, Provenance, and Taverna Agora.

70+

establishments feature outdoor dining connecting people with the street environment

15+

restaurants are announced or already open in 2016 with additional restaurants expected

50+

restaurants participated in DRA’s Downtown Raleigh Restaurant Week

•T he New York Times, Washington Post, Wall Street Journal, Garden and Gun, Huffington Post, and Southern Living have all brought national attention to downtown’s restaurant and nightlife scene recently.

•B ida Manda, a well-regarded Laotian restaurant on Moore Square, was named Best Restaurant in North Carolina by Business Insider.

• I n 2015, Garden and Gun featured Bida Manda, Boulted Bread, Joule Coffee & Table, Videri Chocolate Factory, and Standard Foods.

•D owntown also added Carolina Ale House and The Raleigh Beer Garden, now the Guinness World Record holder for most beer brands and most varieties of beer on tap.

•D owntown is home to craft beer breweries, such as Clouds, Trophy, and Crank Arm; classy cocktail lounges; dive bars; “barcades” and some of the best beer bars in the country like Busy Bee Café and The Raleigh Times, according to DRAFT Magazine.

MOMENTUM + GROWTH

“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

MOMENTUM | FOOD AND BEVERAGE SALES IN DOWNTOWN 2012-2015

GROWTH | FOOD AND BEVERAGE SALES SINCE 2013

Downtown’s success as a dining and nightlife destination is evident in the rising food and beverage sales generated downtown, which have grown 19% since 2012.

All districts have seen major growth in their food and beverage sales in the past three years with the Warehouse District and Glenwood South seeing the most growth, percentage-wise, over that time.

35%

Dollars (in millions)

$180

30%

$170

25% $160 20% $150

15%

$140

10%

$130

5% 0%

$120 2012

2013

2014

2015

Glenwood South Fayetteville St Moore Square

Warehouse

HOSPITALITY DISTRICT Residents and merchants came together in Glenwood South to form a hospitality district that includes a noise ordinance, which promotes communication and cooperation between

Source: Wake County Tax Assessor

business owners and residents. This ordinance helps nightlife co-exist with residents and keeps this district a growing and vibrant part of downtown.

DINING + NIGHTLIFE | 69

Š Tierney Farrell

Photo Courtesy of the North Carolina Museum of Natural Sciences

Tourism Downtown Raleigh is home to some of the state’s largest attractions and events. Each year, downtown hosts millions of visitors at a diverse array of museums, festivals, music venues, and art galleries. From bluegrass to electronica, historic attractions to contemporary art, downtown Raleigh has something for every kind of visitor.

3.5 million visitors to downtown’s top 15

Over 1 million attendees for outdoor

15% increase in hotel room occupancy

190+ outdoor events in 2015³

attractions¹

festivals in downtown in 2015

since 2013 including 4% growth in 2015²

33% increase in visitors over past decade

400,000+ attendees at Raleigh Convention Center¹

including 7% over past three years¹

TOP DOWNTOWN ATTRACTIONS IN 2015

VISITORS

NC MUSEUM OF NATURAL SCIENCES

985,905

MARBLES KIDS MUSEUM/WELLS FARGO IMAX® THEATRE

671,085

RALEIGH CONVENTION CENTER

403,545

NC MUSEUM OF HISTORY

401,749

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

369,404

NC STATE CAPITOL

109,797

RED HAT AMPHITHEATER

114,762

ARTSPACE

92,440

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

¹Greater Raleigh Convention and Visitors Bureau ²STR Global and Greater Raleigh Convention and Visitors Bureau ³City of Raleigh Special Events Office

TOURISM | 71

ON THE MAP | DOWNTOWN ATTRACTIONS E FRANKLIN ST

PACE ST

HALIFAX ST

SEMART DR

SEABOARD AVE

State Legislative Building NC Museum of Natural Sciences

WILMINGTON WILMING WILMIN NGTON ST

State Government Complex

NC Museum of History

NC State Capitol

Marbles Kids Museum

COR Museum

Moore Square City Market

CAM Raleigh Artspace KI

ST

KINSEY ST

NS EY

Red Hat Amphitheater

Raleigh Convention Center

Duke Energy Center for the Performing Arts

Downtown hosts over 1,000,000 people per year at festivals and FESTIVALS + EVENTS

events, ranging from holiday celebrations to music festivals to art and design events.¹

© Michael Zirkle | First Night Raleigh 2016

GROWTH IN DOWNTOWN TOURISM SINCE 2007 4,000,000 3,500,000 3,000,000 2,500,000

33%

2,000,000 1,500,000 1,000,000 500,000 0 2007

2009

2012

2014

2015

Some of downtown’s largest events

IBMA World of Bluegrass

IBMA World of Bluegrass Capital City Bikefest “The Works” 4th of July celebration First Friday (monthly) WRAL Christmas Parade First Night Raleigh Hopscotch Artsplosure SPARKcon Brewgaloo African American Festival

The International Bluegrass Music Association (IBMA) holds their annual convention in downtown Raleigh. The convention and accompanying music festival brought 180,000 people to downtown in fall 2014, a 29% increase over the previous year’s attendance. (Last year’s festival had to be moved indoors due to weather.) The Greater Raleigh Convention and Visitors Bureau estimates the event in 2014 created:

¹City of Raleigh Special Events Office

•$ 10.8 million in direct visitor spending, up 16% from 2013 • Boosted area hotel rooms 15% to 23,000 • Brought an estimated 88,000 attendees from outside Wake County, up 5% from previous year TOURISM | 73

MAJOR DOWNTOWN EVENTS + FESTIVALS

RALEIGH CONVENTION CENTER 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,

Š Carolyn Scott

Producing More than 725,000 Kilowatt Hours of Electricity

HOTELS Downtown Raleigh hotels continue to see strong increases in demand, demonstrating a growing visitor base and increasing demand for hotels in Raleigh’s CBD. Furthermore, downtown’s hotel market growth outperformed Wake County as a whole, according to STR Global.

Downtown’s hotel market outperformed the county, state, and national hotel industries.

2015 HOTEL MARKET PERFORMANCE

1,127

$160

74%

$140

72%

$120

70%

$100

68%

$80

66%

$60

64%

$40

62%

$20

60%

$-

58% Downtown

Wake County

Average Daily Rate

North Carolina

Revenue Per Room

hotel rooms in downtown

U.S. Occupancy Rate

175

rooms under construction with 600+ rooms in planning

GROWTH IN HOTEL PERFORMANCE SINCE 2013: DOWNTOWN RALEIGH AND WAKE COUNTY

30% 25% 20% 15% 10% 5%

10%

0% Hotel Room Occupancy

Average Daily Room Rate

Downtown Raleigh

Revenue Per Room

increase in revenue per room last year; up 29.5% over 2013 to $101.88 per room

Wake County

Source: STR Global and Greater Raleigh Convention and Visitors Bureau

TOURISM | 75

Š Carolyn Scott

Arts + Culture The arts and cultural sector generates $143 million in economic activity in Raleigh, supporting 5,699 full-time jobs and $109.3 million in household income.

•N early 40 art galleries and arts organizations, entertainment venues and performance groups based in downtown •C apacity for 12,000+ patrons at a 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, The Pour House Music Hall, Kings, Slim’s, Deep South The Bar, C. Grace, and Southland Ballroom

•A rts institutions include CAM Raleigh (Contemporary Art Museum), Visual Art Exchange (VAE), Artspace, and The Mahler Fine Art Gallery to events such as Artsplosure and SPARKcon •M usic festivals include IBMA World of Bluegrass, Hopscotch, Oak City 7, and Pickin’ in the Plaza •N ewly adopted Raleigh Arts Plan articulates a shared vision and goals for improving cultural life of Raleigh

© Tim Lyvtvinenko

MUSIC | BIRDS OF AVALON

Arts and Economic Prosperity IV: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the City of Raleigh, North Carolina, 2013

ARTS + CULTURE | 77

© Tierney Farrell

© Tierney Farrell

© Tierney Farrell

Photo Courtesy of Artsplosure

© Armes Photography

© Dan Hacker Photography © Tierney Farrell

MAJOR DOWNTOWN EVENTS + FESTIVALS

A SAMPLING OF THE ARTS Raleigh Arts Plan This plan is a community cultural plan that outlines a shared vision for the future of Raleigh’s arts and culture.

The city, partner organizations, and community members came together for this effort. The goals include: 1. Promote an active arts and culture life throughout the community 2. Expand youth arts participation 3. Ensure equity, access and inclusion in all cultural programming 4. Support the work of Raleigh’s artists and arts and cultural organizations 5. Enhance the vitality of Raleigh’s neighborhoods and districts through thoughtful placemaking 6. Enhance arts leadership and governance 7. Strengthen marketing, promotion and valuing of the arts 8. Create a system of sustainable arts funding More information can be found at www.raleighnc.gov/parks/content/ParksRec/Articles/Projects/ArtsPlan.html.

Artspace Founded in 1986, this nonprofit arts center hosts over 100,000 visitors annually for exhibitions, workshops, classes, programming and events. Over 30 artists work in the 30,000 square foot facility located in a historic building near Moore Square.

Artsplosure Since its first festival in 1980, Artsplosure has presented numerous festivals and outdoor programs featuring thousands of established or emerging visual, performing and interdisciplinary artists with the goal of bringing recognition and exposure to a wide range of artists and continuing to elevate the arts community of Raleigh.

Carolina Ballet Carolina Ballet has staged over 80 world premiere ballets, toured internationally and performs frequently at the Duke Energy Center for the Performing Arts. The company performs a broad array of ballet from newly commissioned works to traditional classics.

CAM Raleigh (Contemporary Arts Museum) Opened in a spectacular space in 2011 and located in a renovated warehouse in the Warehouse District, CAM Raleigh exhibits works in emerging and new areas of art with the goal of stimulating creative thinking in the community. CAM Raleigh shows works in a wide variety of mediums that both educate and challenge visitors.

First Friday Gallery Walk A staple of downtown for more than two decades now, over 15,000 people come downtown on the first Friday of each month to sample downtown’s art galleries, museums, stores, and alternative art studios, many of which stay open late for attendees.

SPARKcon Started as a grassroots initiative, SPARKcon is a three-day interdisciplinary festival of art, design, music, film, fashion, poetry, food, theatre, and ideas, which is meant to support emerging artists and creative movements.

The annual celebration has showcased the cultural richness of downtown since 2006.

Visual Arts Exchange (VAE) Located in the Warehouse District, VAE encourages and supports visual artists through providing education, access to training, networking, exhibitions, and its interdisciplinary festival known as SPARKcon. VAE showcases the work of over 1,300 artists per year through more than 60 exhibits.

ARTS + CULTURE | 79

MAJOR DOWNTOWN EVENTS + FESTIVALS

"Raleigh is one of the first things our fans think about when they think about the band. Every night, every show, we start off by saying ‘We're American Aquarium from Raleigh, North Carolina.’ I lived downtown for over seven years and really enjoyed becoming a part of

© Tufshot Photography

such a diverse community. Whether it’s the food, the bar scene, or the museums, there is always something to do. ” – BJ BARHAM, AMERICAN AQUARIUM

© Tierney Farrell

MUSIC

Red Hat Amphitheater Opened in 2010 and located in the heart of downtown, Red Hat Amphitheater stands out among outdoor venues in the region due to its stunning views of the downtown skyline and location among all the restaurants and nightlife in downtown Raleigh. The venue hosted over 114,000 visitors last year at 33 events between April and October, including nationally known touring acts like The Decembrists, My Morning Jacket, Alt-J and Counting Crows, among others.

North Carolina Symphony Founded in 1932, the North Carolina Symphony is a full time, professional orchestra with a reputation for innovative programming and collaborative projects. Based at Meymandi Hall at the Duke Energy Center for the Performing Arts, the NC Symphony performs 175 shows a year throughout the state and provides an extensive educational program to children all over North Carolina.

North Carolina Opera Dedicated to presenting high-level operatic performances to the Triangle, North Carolina Opera brings international level artists to downtown Raleigh through a wide-ranging repertoire from Mozart to Philip Glass.

Duke Energy Center for the Performing Arts Anchoring the southern end of Fayetteville Street, the Duke Energy Center for the Performing Arts hosted 600 events in 2015 with over 369,000 attendees. Combining the historic Raleigh Memorial Auditorium with three modern venues, the center hosted everything from bluegrass and pop music to Broadway and ballet. This facility includes: • Meymandi Concert Hall: 81,000 square feet, 1,750 seats • Raleigh Memorial Auditorium: 88,000 square feet, 2,263 seats • Fletcher Opera Theater: 36,000 square feet, 600 seats • Kennedy Theater: Experimental Theater, 170 seats In 2015, the performing arts center received $10 million in upgrades and renovations such as new lighting, rebuilt concessions area, safety systems, and new paint throughout the building, as part of an ongoing $17.7 million renovation plan, which began two years ago.

North Carolina Theatre Based at the Duke Energy Center for the Performing Arts, the North Carolina Theatre seeks to build community and interest in the arts through high-quality theatre productions with both local and national talent.

ARTS + CULTURE | 81

“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

MUSIC

“Our music is laid back, it’s personal, and it’s based on our innermost thoughts. And what we feel in our soul.”¹ – KING MEZ

Downtown Raleigh is also home to a thriving and diverse music scene. From the funk of Boulevards to the country twang of American Aquarium and Tift Merritt to the heady psychedelic rock of Birds of Avalon and low-fi pop of The Love Language, Raleigh is a fertile ground for emerging and established recording artists to both create and perform.

Raleigh has produced well-known and respected artists from rising hip-hop star King Mez to Whiskeytown and Ryan Adams to The Connells and The Rosebuds.

¹Interview, The MSU Spokesman, April 9, 2013

Downtown Raleigh also hosts some of the premiere music festivals in the region. In addition to the massively successful and well-attended IBMA World of Bluegrass festival, Hopscotch Music Festival brings thousands of music fans downtown every year for three days to see over 140 bands, including experimental and underground artists, at venues across downtown with 40% of the performers at Hopscotch from the state of North Carolina.

ARTS + CULTURE | 83

Š Flyboy Photography

Connectivity + Sustainability Downtown Raleigh is becoming a center for connectivity and sustainability in the Triangle. Downtown is the most walkable part of the Triangle and is a transportation hub for the region that moves thousands of residents, visitors, and employees every year. leader in solar panel usage. More parks and green space in downtown are being planned or renovated, expanding options for recreation and relaxation. Plus, downtown is home to a growing local food and urban farm movement, which helps make downtown a more sustainable and healthier community.

© Cheryl Gottschall

Additional investments such as Bike Share, a new multimodal station, additional bike lanes, conversion of oneway streets and potential transit enhancements are being made. New buildings in downtown are receiving LEED certification, which makes them more environmentally friendly and energy efficient, while Raleigh is becoming a

TRANSIT 30+ bus routes connecting downtown to the rest of the city and region through the GoRaleigh and GoTriangle systems

200,000 riders on the R-LINE,

downtown’s free circulator service featuring hybrid buses that connects all downtown districts

$79.8 million multi-modal center, Raleigh Union Station, under construction in a former warehouse

Amtrak passenger train service to other cities in the state, region and country

Wake County Transit Plan is a partnership between Wake County, City of Raleigh, Town of Cary, GoTriangle, Capital Area Metropolitan Planning Organization (CAMPO), Research Triangle Park, NC State University and RaleighDurham International Airport to study ways that Wake County can greatly increase its public transit coverage and infrastructure. The plan’s current recommendations include: •C ommuter Rail Transit: 37 miles of service on existing tracks to connect downtown with Garner, NC State, Cary, Morrisville, RTP and Durham •B us Rapid Transit (BRT): 20 miles of BRT with downtown serving as a central hub •M ore Enhanced Local and Express Bus Service: Improve bus connections to other municipalities, and increase frequencies on high demand routes CONNECTIVITY + SUSTAINABILITY | 85

BIKING + WALKING

Average Walk Score (per Walkscore.com) Downtown Raleigh has the highest walk score in the region with a high score of 95 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.¹

DOWNTOWN DURHAM

87

DOWNTOWN RALEIGH

95

DOWNTOWN CHAPEL HILL

86

AVERAGE OF CITIES IN TRIANGLE

28

95: Highest walk score in downtown, making this the most walkable area in the region¹

135 bike racks with room for 460 bicycles²

Bike Share in development with 30 stations and 300 bicycles²

180 miles of greenway and on-road bike facilities throughout Raleigh²

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

TRANSPORTATION

Downtown Raleigh App To help make finding parking even easier in downtown, DRA developed an app that directs users to the parking nearest to their destination. The Downtown Raleigh App also has real time information on the R-LINE circulator bus and allows stores and businesses to easily list their specials and promotions.

Driving and Parking

40 40,000+ parking spaces in downtown

10 major arterial streets connect downtown to the rest of Raleigh

$76 million 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

I-40 runs just south of downtown

Monthly parking is 36% below the U.S. national average for downtowns, according to a 2012 report1

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. Lenoir and South Streets are under construction, while Jones and Lane Streets have been identified for future conversion

Flying

9.9 million passengers

in 2015 at Raleigh-Durham International Airport (RDU)²

20 minutes from downtown

Located just and accessible via express bus²

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

400 flights daily²

¹Colliers International, Central Business District Parking Rate Survey, ²Raleigh-Durham International Airport

CONNECTIVITY + SUSTAINABILITY | 87

© Flyboy Photography

SUSTAINABILITY

Downtown Raleigh is becoming a leader in sustainability. In addition to walkability and transit, downtown boasts a substantial amount of green space, numerous energy efficiency initiatives and a growing urban food system movement.

PARKS AND GREEN SPACE: Downtown Raleigh’s strong system of parks and green space will see enhancements 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.

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

100+ acres of public park space within one mile of downtown

10 parks within one mile of downtown 120 miles of greenway in Raleigh The future of downtown’s green space is bright with projects already underway and more planned in the Downtown Plan:

•M oore Square renovation: A $12.7 million renovation of one of Raleigh’s original, historic squares, which will provide a world-class public space for downtown. Construction begins in 2016 and the park reopens in 2017.

•D ix Park: The City of Raleigh purchased 308 acres from the state of the former Dorothea Dix psychiatric hospital campus on the southern end of downtown, which will provide the city and downtown with a destination park with sweeping views of downtown’s skyline.

•M arket and Exchange Plazas renovation: A $2 million renovation of two plazas connecting Fayetteville and Wilmington Streets to provide small areas of rest in the bustle of downtown’s core with construction concluding in spring 2016.

• D evereux Meadows: A future 12-acre park planned for a flood basin on the northern end of downtown, which will provide much needed green space near the growing Glenwood South District.

• Chavis 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.

ON THE MAP | GREEN AND CIVIC SPACE NETWORK

HALIFAX COMMUNITY CENTER & PARK

FRED FLETCHER PARK

FUTURE DEVEREUX MEADOWS

MORDECAI HISTORIC PARK

RALEIGH CITY FARM

HALIFAX MALL

OAKWOOD CEMETERY

NC MUSEUM OF NATURAL SCIENCES NC MUSEUM OF HISTORY PULLEN PARK

MARBLES KIDS MUSEUM

NASH SQUARE

CITY CEMETERY

MOORE SQUARE

CAM

FUTURE DIX PARK

RED HAT AMPHITHEATER

LENOIR ST PARK

CITY PLAZA

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

Green Space

Plaza

Greenway or On-street Bicycle Link

SOURCE: City of Raleigh

Campus

CHAVIS PARK

Museum or other Civic Building

Creek

CONNECTIVITY + SUSTAINABILITY | 89

© Flyboy Photography

© Carolyn Scott

© Carolyn Scott

© Stuart Jones

ENERGY + FOOD SYSTEMS

© Stacey Simeone

Energy

Raleigh City Farm

•L EED certification: Numerous new buildings in downtown are being constructed to LEED standards, such as the Citrix building which received LEED Gold certification and Charter Square, which is LEED Platinum. These buildings are more environmentally friendly and energy efficient.

The Raleigh City Farm is an urban farm start-up in downtown Raleigh and an anchor of downtown’s emerging local food movement. This communitysupported farm grows food and supports new urban farms, as part of improving access to fresh food and small-scale urban agriculture for downtown residents. Produce from this farm is purchased and used by local restaurants in downtown, as well as sold directly to neighbors and residents through a Community Supported Agriculture (CSA) farmshare, a farmers market and farm stand. Raleigh City Farm also helps rural farms access the downtown market by helping sell their products, thus, improving urban-rural food connections and access to even more fresh food. The farm has contributed to the revitalization of the nearby Person Street Plaza and surrounding neighborhood, which was named by USA Today as one of the “10 Best Up and Coming Neighborhoods around the U.S.”

•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.1 •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.

Raleigh Downtown Farmers Market Each Wednesday from May-September, City Plaza hosts the Raleigh Downtown Farmers Market, featuring over 30 vendors selling fresh produce and locally made goods. An average of 3,000 people attend the market every week to take a break from work, enjoy the festive atmosphere, and support local farms and businesses.

Raleigh Food Corridor This initiative attempts to build off the local food cluster emerging in a two-mile stretch along the east side of downtown. The goal is to engage the community and create a dialogue about building a dense food system in downtown, which can bring food security, economic development and public health benefits to the downtown community. The Second Saturday event takes place in this corridor from April-November with pop-up markets, walks, and food-related demonstrations.

Urban Food System Downtown Raleigh is home to an emerging local food and urban farm movement. Food security and access to fresh food is an important aspect of building a true live-work-play community in downtown and helps residents remain healthy and connected to the land. In addition to public health benefits, local food systems and urban farms and gardens have economic impacts, which make downtown neighborhoods more attractive places to live.

Downtown is home to several educational gardens at places like Marbles Kids Museum and Moore Square Magnet Middle School.

Additionally, three farmers markets take place in downtown with several more nearby, providing access to fresh produce for downtown residents and workers. Numerous other efforts are underway to improve the local food system by providing fresh food to underprivileged populations and mapping edibles to teaching farm and garden education to residents.

1 Environment North Carolina, “Shining Cities: At the Forefront of America’s Solar Energy Revolution,” April 2014.

CONNECTIVITY + SUSTAINABILITY | 91

© Tufshot Photography

MAJOR DOWNTOWN EVENTS + FESTIVALS

DRA Impact The Downtown Raleigh Alliance (DRA) has established a strong track record for positioning downtown as an economic engine for the city and greatly enhances the economic success of downtown. As stated in the DRA mission, we provide services on a day-to-day basis that have a short-term and long-term impact on downtown’s revitalization.

DRA’s core services include: Clean and Safe Ambassadors; Strategic Branding and Community Communications; Events Production; Retail Attraction and Merchant Promotions; Strategic Partnerships and Stakeholder Engagement; and Strategic Planning. From recruitment meetings to television interviews, we’ve proactively shared downtown’s story in a positive light throughout 2015. We

take pride in working collaboratively with all stakeholders from merchants and property owners to media companies and the City of Raleigh. ABC11 partnered with us to air a live 30-minute special during our annual Winterfest festival in 2015 where we hosted Raleigh’s own American Aquarium and Mayor Nancy McFarlane’s official tree lighting ceremony.

Clean and Safe Ambassador Impact

98,345

equals the weight of about

2 fire trucks

pounds of trash removed

1,284

motorist assists

2,976 hours

patrolling parking decks seven days a week

1,554

total safety escorts in 2015

56.5 hours removing graffiti and weeds

DRA IMPACT | 93

© Carolyn Scott

© Stacey Simeone

© Carolyn Scott

MAJOR DOWNTOWN EVENTS + FESTIVALS

© Carolyn Scott

DRA celebrated the organization’s 20th anniversary and launched a brand new Downtown Raleigh App at our 2016 Annual Meeting and Downtown Achievement Awards Ceremony.

DOWNTOWN RALEIGH ALLIANCE IMPACT

An Attractive and Friendly Downtown • 98,345 pounds of trash removed by the Ambassador Clean Team and the clean machines combined in 2015 • 56.5 hours spent removing graffiti and weeds in 2015 • 2,976 hours patrolling parking decks seven days a week in 2015 • 1,554 safety escorts provided in 2015

A Connected Downtown • Started hosting Second Tuesdays, monthly networking events at different nightlife venues each month • 2,000+ attendees at networking events, including over 1,000 at DRA’s Annual Meeting and Downtown Achievement Awards Ceremony • 13 grand-opening ribbon cutting ceremonies in 2015

An Engaging Downtown • The events calendar landing page receives an average of 34,000 pageviews per month, proving that DRA’s website is the best place to find downtown special event information • 79,000+ social media followers

A Collaborative Downtown • Partnered with the City of Raleigh to raise money for and launch the 2025 Downtown Plan • Provided over $22,000 in sponsorship contributions in 2015

2015-2016 COMBINED BUDGETED EXPENSES

A Prosperous Downtown • 29 street-level businesses opened in 2015, a net gain of 13 new stores • DRA was instrumental in helping pop-up shop Flight find space and open in October 2015 • Started #DTRetail program and awarded over $24,000 in retail grants to encourage new and diverse retail to open downtown

A Vibrant Downtown • Produced four major merchant programs to promote downtown merchants (First Friday Raleigh Art Gallery Walk, Downtown Raleigh Restaurant Week, Shop Downtown Raleigh and the Raleigh Mix) • Partnered with the national “Shop Small” campaign to encourage patronage of local downtown retailers the Saturday after Thanksgiving • Created a brand new website to promote the many nightlife options downtown offers (www.RaleighMix.com)

A Memorable Downtown • 170,00+ visitors attended DRA Outdoor Events (Raleigh Winterfest, Downtown Raleigh Movie Series, and Raleigh Downtown Farmers Market) in 2015 • $200,000+ in vendor sales on local agriculture and artisan food products at the Raleigh Downtown Farmers Market during the 2015 market season • 18,000 people at the Downtown Raleigh Movie Series in 2015

2015-2016 COMBINED BUDGETED REVENUES

4% MD

8% SP 8% SB 38% SH

9% EP

21% CS

50% PA

10% RA

27% AL

25% FS

Safety, Hospitality + Clean (SH)

Property Assessment (PA)

Advocacy + Leadership (AL)

Fee for Service (FS)

Retail Attraction + Merchant Promotions (RA)

Corporate Sponsorships (CS)

Events Production (EP)

Member Dues (MD)

Strategic Branding + Community Communications (SB) Strategic Partnerships + Stakeholder Engagement (SP) DRA IMPACT | 95

DRA BOARD, STAFF & ACKNOWLEDGEMENTS

ACKNOWLEDGEMENTS

OFFICERS + EXECUTIVE COMMITTEE

BOARD OF DIRECTORS

Jason Smith Chair 18 Seaboard Restaurant

Jeff Bandini Parker Poe

Andy Holland SunTrust Bank

Shelley Blake (Ex-Officio) NC Dept. of Transportation

Chad T. Lefteris UNC Rex Healthcare

Pam Blondin Deco Raleigh

J. Rich Leonard Campbell University School of Law

Marty Clayton Duke Energy

D. O’Hara Macken Ipreo

Leon Cox Sheraton Raleigh Hotel

David Meeker Downtown Resident, West at North

Tashni Dubroy Shaw University

Joe Meir Blue Ridge Realty, Inc

Sally Edwards Marbles Kids Museum

Gregg Sandreuter Hamilton Merritt

Tim Giuliani (Ex-Officio) Greater Raleigh Chamber of Commerce

Nate Spilker Citrix

Jon Wilson Treasurer and Chair Elect Kimley-Horn and Associates, Inc. Rebecca Quinn-Wolf Immediate Past Chair PNC Sarah Powers Secretary Visual Art Exchange Joseph ‘Bo’ Dempster, Jr. Legal Counsel Poyner Spruill Clymer Cease At-Large ClarkNexsen Sharon Moe At-Large North State Bank David A. Diaz (Ex-Officio) President + CEO Downtown Raleigh Alliance

Sue Glennon Hampton Inn & Suites Hotel at Glenwood South Neil Gray JDavis

Josh Stein (Ex-Officio) NC General Assembly Andrew Stewart Empire Properties Caroline F. Welch ABC 11

Ruffin Hall (Ex-Officio) City of Raleigh Jim Hartmann (Ex-Officio) Wake County

PROFESSIONAL STAFF

Jean Carroll Events Coordinator

Bill King Planning + Development Manager

Danny Vivenzio Communications Manager

Roxanne Coffey Office Manager

Ashley Melville Business Development Director

Stephanie Wilser Finance Manager

David A. Diaz President + CEO

Craig Reed Events Manager

Kimberley Jones Executive Assistant

Stacey Simeone Marketing Director

Americans for the Arts Artsplosure Avison Young Biz 3 Publicity & Management Campbell Law School Capital Area Transit Authority Carolina Ballet CBRE Cheetie Kumar, Birds of Avalon 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 David Meeker Downtown Living Advocates Downtown Raleigh Alliance Ground floor inventory 2011, 2012 Greater Raleigh Chamber of Commerce Greater Raleigh Convention and Visitors Bureau HR&A Advisors HQ Raleigh Integra Realty Resources Integrated Postsecondary Education Data System Ipreo Jamil Rashad, Boulevards JLL Jessie Connor, Ramble Supply Co Julie Brackenbury, Greater Raleigh Convention and Visitors Bureau Loren Gold, Greater Raleigh Convention and Visitors Bureau North Carolina Museum of Natural Sciences Patrick Daly, Cohera Medical Port of Raleigh Raleigh City Farm Raleigh Convention Center Raleigh Historic District Commission Raleigh-Durham Airport Authority Retro Modern Furnishings Sara Casella, Motormouth Media Sasaki Associates Shaw University Smith Travel Research SPARKcon St. Augustine’s University Todd Olson and Trish LaPaglia, Pendo Triangle Business Journal U.S. Bureau of Labor Statistics, LED OnTheMap U.S. Census Bureau Visual Art Exchange Wake County: GIS, Revenue Department William Peace University Graphic Design: Stacey Simeone For errata visit: www.YouRHere.com

HOTELS

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. On a day-to-day basis, DRA provides six core services that have a short-term and long-term impact on downtown: 1. SAFETY, HOSPITALITY + CLEAN AMBASSADORS 2. STRATEGIC BRANDING + COMMUNITY COMMUNICATIONS 3. EVENTS PRODUCTION 4. RETAIL ATTRACTION + MERCHANT PROMOTIONS 5. STRATEGIC PARTNERSHIPS + STAKEHOLDER ENGAGEMENT 6. STRATEGIC PLANNING

ARTS + CULTURE | 97

PRODUCED BY:

120 S Wilmington Street, Suite 103 • Raleigh, NC 27601 • www.YouRHere.com • info@downtownraleigh.org • 919.832.1231