Perkins Eastman_Design Strategy_Rus Bus Station Square_Market Research_V1

RALEIGH, NC

RALEIGH SNAPSHOT | RECENT RANKINGS

#1 BEST CITY FOR JOBS IN THE US (GLASSDOOR, 2020)

#1 UPCOMING IT CITY IN USA OTHER THAN SILICON VALLEY (CUSTOMERTHINK, 2020)

#1 REAL ESTATE MARKET FOR 2021 (PWC, 2020)

#1 U.S. MARKET FOR RESIDENTIAL CONSTRUCTION PERMITS IN 2019 (APARTMENTGUIDE.COM, 2019)

#2 BEST QUALITY OF LIFE IN THE WORLD (NUMBEO.COM, 2020)

#2 FASTEST GROWING U.S. METRO FROM 2018-2019 (US CENSUS, 2020)

#3 BEST PLACES FOR BUSINESS AND CAREERS (FORBES, 2020)

#5 HOTTEST LABOR MARKET IN THE U.S. (WALL STREET JOURNAL, 2020)

#9 MOST RECESSION-RESISTANT CITY IN THE U.S. (SMARTASSET, 2020)

1 OF 10 CITIES BEST-POSITIONED TO RECOVER FROM CORONAVIRUS (MOODY’S ANALYTICS, 2020)

DEMOGRAPHICS ECONOMY MOBILITY

DEMOGRAPHICS

MEDIAN AGE:

34.1

39% of downtown residents are between the ages of 25-44, compared to 28% for the Raleigh metropolitan area and 26.6% nationally.

EDUCATIONAL ATTAINMENT FOR POPULATION 25+ YEARS

Source: U.S. Census

ECONOMY

COMPARE TO THE U.S. WORKFORCE

THE RALEIGH METROPOLITAN AREA

There are four key industry clusters in The Research Triangle, including Cleantech/Smart Grid, Advanced Manufacturing, IT/Technology and Life Sciences.

Source: Bureau of Labor Statistics

MAJOR EMPLOYERS IN WAKE COUNTY

BUSINESS BY STOREFRONT IN DOWNTOWN RALEIGH

Downtown Raleigh’s retail base has grown by 62% since 2011. Currently there are 120 retailers in the area. 93% of these businesses are independently owned and operated.

There are currently 151 restaurant and bars in downtown Raleigh, 66 of which have opened since 2015. There has been an increase of 107% in food and beverage sales this decade, with 9.4% growth in sales in 2019 over 2018. 2011-2020 I PERCENTAGE OF NET GAIN IN BUSINESS BY STOREFRONT CLASSIFICATION

BUSINESS BY STOREFRONT IN DOWNTOWN RALEIGH

GROWTH IN FOOD AND BEVERAGE SALES BY

Glenwood South

Fayetteville St Moore Square Warehouse

COMPLETED SINCE 2015, UNDER CONSTRUCTION, PLANNED DEVELOPMENT

5,767

New residential units

8,650 New residents

3.68M Square feet of new office space 15k+ New office employees

661K Square feet of new retail space 150+ New stores and restaurants

1,908 New hotel rooms

523K More overnight stays per year

CASE STUDY: THE CITRIX BUILDING

The property at 120 S West St, delivered in 2014, was most recently sold in December of 2019. There was a net 24% return on investment from the 2014 sale amount of $68.5 million to the 2019 sale amount of $84.75 million.

This building is located one block north of RUS Bus Station Square.

“In

2020, despite an international pandemic and a national economic downturn, Downtown Raleigh’s growth has continued in every asset

class.”

- State of Downtown Raleigh 2020 Report

IMPACTS OF COVID-19

• Compared to other U.S. metros, Raleigh has a lower percentage of employment in the service, hospitality and tourism sectors most impacted by the pandemic.

• Preliminary data and perception of the pandemic’s effects suggest that talent is beginning to flee major metros in favor of the affordability and quality of life that mid-market metros and the suburbs provide.

• The concern of vacant office and multifamily properties has yet to materialize in the numbers. Both office and multifamily are seeing above 90% occupancy with apartment occupancy sitting at an impressive 97% overall in the downtown area as of the end of July 2020.

MOBILITY

TRANSPORTATION OPTIONS

DRIVING:

77.6% of residents commute to work by driving alone The average household owns two cars

TRANSIT: 2.2% of residents commute to work via public transit 37 miles of service is planned on existing tracks to connect downtown Raleigh with Garner, Cary, Morrisville, RTP, NC State, and Durham

WALKING:

10.4% of downtown residents walk to work versus 1.1% regionally