State of Downtown Raleigh 2016

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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.

• Starting 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 |

14 |

26 |

36 |

46 |

58 |

64 |

68 |

74 |

82 |

90 |

INTRODUCTION TO DOWNTOWN

DEVELOPMENT + INVESTMENT

FUTURE PLANNING + PUBLIC INVESTMENT

LIVING

OFFICE, INNOVATION + TALENT

SHOPPING

DINING + NIGHTLIFE

TOURISM

ARTS + CULTURE

CONNECTIVITY + SUSTAINABILITY

DRA IMPACT


DOWNTOWN MAP

Seaboard/

Person Street

District

Glenwood

South

District

Capital District

Warehouse

District

Fayetteville

Street District

Moore Square

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


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Flyboy Photography

VALUE

SHOP

31% INCREASE IN PROPERTY VALUE FOR

DOWNTOWN SINCE 2008¹

106% increase in land value for

downtown since 2008¹

EAT AND DRINK

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

10 NEW STORES ADDED SINCE BEGINNING OF

2015

39% increase in downtown retailers

since 2010

150,000 square feet of new retail

space planned

5% STOREFRONT VACANCY RATE

LIVE

2,850 residential units recently

delivered, under construction, or

planned

15,240 RESIDENTS LIVE WITHIN ONE MILE OF THE

STATE CAPITOL BUILDING²

¹Wake County Tax Assessor’s Office ²U.S. Census


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

45,000+ EMPLOYEES

40,000+ STUDENTS AT UNIVERSITIES IN

RALEIGH

46 employees per acre, densest

office market in region

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

Nearly 40 art galleries and

entertainment venues in

downtown

15,000+ ATTEND MONTHLY FIRST FRIDAY

EVENTS

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

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

CONNECT + SUSTAIN

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.

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.

$1.1 billion

development pipeline

$321 million

recently delivered

4,000,000

square feet being added to downtown

$570+ million

planned

$350 million

under construction

$182 million

in public investment

¹Wallet Hub, September 2015

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.

DOWNTOWN RALEIGH

Moore Square

28% Capital

8%

STATE OF NC

CITY OF RALEIGH

Glenwood

South

31%

Warehouse

17%

Fayetteville

Street

16%

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 2015-

2020 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

5,221/SM

City of Raleigh

3,055/SM

Wake County

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.

20,000

18,000

16,000

CBD

Within 1 mile

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 35-44 45-54

55-64 65+

CBD Raleigh MSA US

Source: U.S. Census, American Community Survey

INTRODUCTION TO DOWNTOWN | 11


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Tierney Farrell © Tierney Farrell © Tufshot Photography

© Tierney Farrell

© Flyboy Photography

© Tierney Farrell


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

Five transformative projects in five

years

1. Fayetteville Street reopened to

vehicular traffic

2. Build new Raleigh Convention

Center

3. Pedestrian environment

improvement

4. Upgrade business climate

through regulatory reform

5. Expand downtown management

and marketing

2004: TWO PROGRESS PLAZA

OPENS

• Red Hat Tower completed—the

$100 million project added over

350,000 square feet of office space

2005: $60 MILLION

COMPLETED

• The Hudson, The Paramount and

The Dawson give new residential

options

2007: MARBLES KIDS MUSEUM

OPENS

• Today, draws over 600,000 visitors

to downtown every year

2008: RALEIGH CONVENTION

CENTER AND MARRIOTT CITY

CENTER OPEN

• Provides over 500,000 square feet

of exhibition and meeting space,

along with 390 rooms in the heart

of downtown

$630 MILLION IN COMPLETED

PROJECTS

Raleigh’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 © Carolyn Scott

© Carolyn Scott © Carolyn Scott © Carolyn Scott

2010: RED HAT

AMPHITHEATER OPENS

• Provides a unique outdoor venue

for the region

2011: CAM OPENS

• Contemporary Art Museum opens

anchoring the Warehouse District

2013: TECH COMPANIES

MOVE DOWNTOWN

• Ipreo relocated bringing over

250 jobs to downtown

• Red Hat moves into Red Hat

Tower after a $30 million

renovation, bringing 900+ jobs

JUSTICE CENTER AND SECU

TOWER OPEN

• Justice Center: $153 million

investment and LEED Silver

certified

• SECU: $45 million, 12-story,

240,000 square feet, LEED

Gold certified

2014: CITRIX MOVES

DOWNTOWN

• Citrix 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

2015: UNION STATION

BREAKS GROUND

© Tierney Farrell

© Carolyn Scott

© Tierney Farrell

© Monica Slaney

© Carolyn Scott

© Carolyn Scott

2009: CITY PLAZA OPENS

Premier outdoor event location,

now hosts thousands of visitors for

Winterfest, concerts, movie series,

farmers market, and other events

© Carolyn Scott

• $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

2015: DOWNTOWN EXPERIENCE

PLAN APPROVED

2016- : HOTEL ROOMS ADDED

TO TRY AND MEET GROWING

DEMAND

• 10-year plan that calls for more

green space, retail, density,

connectivity, and strategic

development

CHARTER SQUARE OPENS

•240,000 square foot, Class

A office tower opens on

Fayetteville Street, providing

more high quality office space to

downtown’s tight market

2015/2016: RESIDENTIAL

WAVE BEGINS

• Over 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

2016- : MORE OFFICE TOWERS

AND COLLABORATIVE SPACE

OPEN

• Charter 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

• Over 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

© Tierney Farrell

© Tierney Farrell © Flyboy Photography

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

2017- : MORE GREEN SPACE AND

TRANSPORTATION OPTIONS

ADDED INCLUDING DIX PARK

AND BIKE SHARE

• The 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

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 © Flyboy Photography © Flyboy Photography

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

$321 million in development

delivered since the

beginning of 2015

2,850+ residential units

recently completed, under

construction or planned

Over $350 million in ongoing

construction

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

31% increase in property value

for downtown since 2008¹

106% increase in land value

for downtown since 2008¹

¹Wake County Tax Assessor’s Office

DEVELOPMENT + INVESTMENT | 17


© Flyboy Photography

MAJOR HOTELSDOWNTOWN EVENTS + FESTIVALS

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

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

Source: City of Raleigh Planning Department, Ray Aull


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

$300,000.00

$143,554.66

$60,034.70

$150,000.00

Downtown

Skyscraper

Downtown Multifamily

Apartment

Building

Shopping

Mall

(Raleigh)

$8,788.70 $7,896.74

Apartment

Complexes

Outside CBD

Big Box

Store

(Raleigh)

$2,978.85

Single Family

Home

Source: Wake County Tax Assessor’s Office

DEVELOPMENT + INVESTMENT | 19


MAJOR DOWNTOWN EVENTS + FESTIVALS

Investments in downtown are yielding big profits for developers across

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

© Flyboy Photography

CITRIX | PRICE PER SQUARE FOOT

Sales price 52% more than

investment costs

421 FAYETTEVILLE STREET | PRICE PER

SQUARE FOOT

74% increase in sales price

$400

$250

$350

$300

$200

$250

$150

$200

$150

$100

$100

$50

$50

$-

$-

Investment Sold

2005

2014

Sources: Triangle Business Journal, News and Observer

Sources: Triangle Business Journal, News and Observer


INVESTMENT

© Flyboy Photography

© Tierney Farrell

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

$45,000,000

$40,000,000

$120,000,000

$100,000,000

$35,000,000

$30,000,000

$80,000,000

$25,000,000

$60,000,000

$20,000,000

$15,000,000

$40,000,000

$10,000,000

$20,000,000

$5,000,000

$-

Purchase

Sold

$0

Development

Sold

Source: News and Observer

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

UNDER CONSTRUCTION

DISTRICT

AMOUNT

UNION STATION

GORALEIGH TRANSIT STATION RENOVATION

Warehouse

Moore Square

$79,800,000

$9,900,000

RECENTLY COMPLETED

MARKET AND EXCHANGE PLAZA

Fayetteville Street

$2,000,000

PROPOSED

MOORE SQUARE RENOVATION

CAPITAL BLVD/PEACE ST/WADE AVE EXCHANGE

PEACE STREET STREETSCAPE

TOTAL

Moore Square

Capital

Glenwood/Capital

$12,700,000

$76,000,000

$2,000,000

$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

WAREHOUSE DISTRICT

PROJECT NAME INVESTMENT STATUS DETAILS

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.

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.

Source: DRA, All Photos by Flyboy Photography

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

with $850 million under construction or planned

$79.8 million new multi-modal transit

station under construction

Bike Share to add 30 stations and 300

bicycles around the city

$182+ million

in public investment

320 acres of parks being added plus another

34 acres being renovated in downtown area

New 10-year vision

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).

• Expand on existing downtown Raleigh retail strategy to

target local, authentic retailers.

• Identify 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:

• Renovation of existing parks such as historic Moore and

Nash Squares.

• Build 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.

• Providing on- and off-street bicycle facilities and infrastructure to link downtown’s districts and major cycling routes into

the rest of the city.

• Enhance transit service through service improvements, such as route consolidation, increased frequency, an improved

R-LINE and upgraded passenger amenities.

• Accommodate 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:

• Maintaining downtown character and

authenticity through historic preservation and

adaptive reuse, public art, and high-quality new

construction.

• Ensuring downtown remains clean and

hospitable.

• Encourage the development of vacant and

underbuilt sites to fill the entire downtown with

active uses.

• Create a robust retail environment in downtown

to include a combination of local and destination

retail.

• Ensure downtown has a diversity of housing

opportunities at different price points.

• Partner with non-profits and Wake County

to address homelessness and work to secure

housing for the homeless population.

LINK // Network and Partner

LINK

NETWORK & 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.

• Partner 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 HALIFAX Person streets with better bicycle and pedestrian access providing connections between urban

PARK

neighborhoods like Oakwood and Glenwood South.

Person Street

Halifax Street

Blount Street

Salisbury Street

Wilmington Street

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

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.

Source: City of Raleigh FUTURE PLANNING + PUBLIC INVESTMENT | 35


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Flyboy Photography

© Flyboy Photography

© Flyboy Photography


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 2016-

2017.

Dix Park

With sweeping views of the downtown skyline, this 308-

acre 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

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

¹Kwelia ²Integra Realty Resources

LIVING | 39


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Flyboy Photography

RESIDENTIAL | UNITS RECENTLY DELIVERED,

UNDER CONSTRUCTION AND PLANNED BY

DISTRICT

Moore Square

28%

Capital

9%

Glenwood

South

33%

Warehouse

18%

Fayetteville

Street

12%

“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

Source: DRA


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 2010

2015 2020

Source: U.S. Census

LIVING | 41


ON THE MAP | RESIDENTIAL PROJECTS

RDU AIRPORT

440

GLENWOOD AVE

70

40

CAPITAL BLVD

440 1

401

WILLIAM

PEACE

UNIVERSITY

PERSON ST

SEABOARD/PERSON

STREET DISTRICT

PEACE ST

JOHNSON ST

9

7

14

3

BOUNDARY ST

PELL ST

EUCLID ST

POLK ST

TUCKER ST

NORTH ST

10

NORTH ST

OAKWOOD AVE

LANE ST

JONES ST

1

13 8

DAWSON ST

MCDOWELL ST

SALISBURY ST

BLOUNT ST

LANE ST

JONES ST

CAMPBELL

SCHOOL

OF LAW

EDENTON ST

440

440

HILLSBOROUGH ST

2

STATE

CAPITOL

BUILDING

NEW BERN AVE

64

MORGAN ST

HARGETT ST

FUTURE

SITE OF

UNION

STATION

WEST ST WEST ST

5

HARRINGTON ST

NASH

SQUARE

11

FAYETTEVILLE ST

MARTIN ST

RALEIGH

CONVENTION

CENTER

4

MOORE

SQUARE BUS

TERMINAL

15

6

DAVIE ST

CABARRUS ST

MOORE

SQUARE

16

PERSON ST

BLOODWORTH ST

HARGETT ST

12

CHAVIS WAY

EAST ST

LENOIR ST

SAUNDERS ST

WESTERN BLVD

DUKE ENERGY

CENTER FOR

PERFORMING

ARTS

WILMINGTON ST

SOUTH ST

SHAW

UNIVERSITY

MARTIN LUTHER KING JR BLVD

SALISBURY ST

440

40 70


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+ Apartment Warehouse District 2018

(mixed use)

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


© 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

Raleigh

Austin

Nashville

Richmond

Memphis

Atlanta

Greenville, SC

Charlotte

Pittsburgh

Phoenix

Minneapolis

Birmingham

Louisville

Cleveland

Orlando

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%

Raleigh

Austin

Nashville

Richmond

Memphis

Atlanta

Charlotte

Pittsburgh

Phoenix

Birmingham

Louisville

Cleveland

Orlando

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

Progress, Upstate Business

LIVING | 45


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Flyboy Photography

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 Greater Downtown Class A/B/C

*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

$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$.50

30%

25%

20%

15%

10%

5%

$0 0%

Source: Kwelia

Raleigh

Austin

Nashville

Greenville, SC

Richmond

Orlando

Washington, DC

Dallas

Atlanta

Memphis

Philadelphia

Charlotte

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

$300+ million planned with $90+

million in current and recently

completed office construction

• Over 1,000,000 square feet of Class A space planned/

under construction

• More 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

• 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

• Densest 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%

0%

Downtown

Raleigh

Cameron

Village

US-1/Capital

Blvd

Glenwood/

Creedmoor

Six Forks

West Raleigh

Cary

I-40/RTP

Southwest Wake

Chapel Hill

Entire Region

Sources: Avison Young, JLL, 4th Quarter 2015


OFFICE

UPCOMING OFFICE PROJECTS | OVER 1.1 MILLION SQUARE FEET OF NEW CLASS A OFFICE SPACE

UNDER CONSTRUCTION OR PLANNED

227 Fayetteville

• Renovation of office building in heart of Fayetteville Street

• 101,000 square feet of Class A office space

• Tenants already moving into space

Charter Square II

• 157,000 square feet office/retail

• $100 million+

• Class A office space with ground floor retail

• 22 stories

• 247 apartment units

The Edison Office

• 315,000 square feet

• $75 million

• 19 stories, 290 foot tower

• Construction planned to begin in 2016

One Glenwood

• 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

• 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

HQ Raleigh expansion

• Renovation 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

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

$0

Downtown

Raleigh

Cameron

Village

US-1/Capital

Blvd

Glenwood/

Creedmoor

Six Forks

West Raleigh

Cary

I-40/RTP

Southwest Wake

Chapel Hill

Entire Region

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

OFFICE, INNOVATION + TALENT | 51


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Tierney Farrell

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.

Overall Rate

Class A Rate Only

Washington DC

Houston

Austin

Philadelphia

Charlotte

Raleigh

Nashville

Orlando

Richmond

Columbia

Atlanta

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00

$60.00

Source: Colliers, JLL


EMPLOYMENT

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

Over 45,000 employees

Over 600 companies with

offices downtown

30% growth in employees in past

decade

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.

45,000

CITRIX

PNC BANK

MCCLATCHY/NEWS AND OBSERVER

2015 2030 Growth

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

EMPIRE EATS/EMPIRE PROPERTIES

SHAW UNIVERSITY

DOWNTOWN COMPANIES | RECENT MOVES/EXPANSIONS IN DOWNTOWN

6FUSION

CBRE

COHERA MEDICAL

DISTIL NETWORK

FILTEREASY

GUIDEBOOK

HOLT BROTHERS

INDUSTRIOUS

KIMLEY-HORN

MCCLATCHY INTERACTIVE

PENDO

PERSONIFY

PHOTOFY

POLSINELLI

RMSOURCE

SPECTRAFORCE/LEOFORCE

VITAL SOURCE

OFFICE, INNOVATION + TALENT | 53


EMPLOYMENT

GROWTH IN EMPLOYEES SINCE 2006

AVERAGE EMPLOYEES PER ACRE

(SUBMARKETS)

35% 50

30%

45

40

25%

35

20%

30

15%

25

20

10%

15

5%

10

5

0%

0

Downtown

Raleigh

Raleigh

(citywide)

Cary

Morrisville

RTP Area

U.S.

Downtown

Raleigh

RTP Area

North Hills

Cary

Downtown

Durham

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

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

#3

#4

in STEM Employment Growth

best region for STEM

professionals in the nation

in percentage of all workers

in STEM jobs

#2

City Creating the

Most Technology Jobs

in 2015

#5

in job openings per capita for

STEM graduates

(Forbes, April 2015)

Source: WalletHub, Jan. 2015


EMPLOYMENT

© Carolyn Scott

RALEIGH-CARY METROPOLITAN AREA HAS:

84%

higher share of employees

in computer and

mathematical occupations

61%

higher share of employees

in life, physical and social

science occupations

189%

higher share of

software and app

developers

134%

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% 15% 20% 25% 30% 35% 40% 45% 50% 55%

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

OFFICE, INNOVATION + TALENT | 55


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Tierney Farrell

© Monica Slaney

“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

© Carolyn Scott

© Flyboy Photograhy


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

• Additional co-working offices for growing start-ups

recently opened include Industrious and The Nest.

• In 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

• Tech companies expanding in downtown include

Pendo, Wedpics, and Spectraforce.

Raleigh 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:

• Pendo plans to more than triple staff with expectations of

60-70 employees.

• Monthly revenue growth averaging 30%.

• Tracks more than 1 billion actions by software users per

month.

• Raised $11 million in new funding.

¹City of Raleigh Economic Development

OFFICE, INNOVATION + TALENT | 57


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Cheryl Gottschall

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

• 8th 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:

• First 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:

• Ranked 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

HIGHER EDUCATION INSTITUTIONS

(within three miles of downtown)

NORTH CAROLINA STATE UNIVERSITY

MEREDITH COLLEGE

TOTAL

ENROLLMENT

34,015

1,949

NUMBER OF STEM GRADUATES AS A SHARE

OF POPULATION (AGES 20-34)

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%

SHAW UNIVERSITY

WILLIAM PEACE UNIVERSITY

SAINT AUGUSTINE’S UNIVERSITY

1,656

1,076

1,064

35%

30%

25%

20%

Raleigh

CAMPBELL UNIVERSITY SCHOOL OF

LAW

426

15%

10%

U.S.

TOTAL 40,186

5%

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.

16%

10%

8%

12%

43%

24%

28%

25%

30%

20%

23%

22%

Downtown Raleigh North Carolina U.S.

Bachelors and Above

Some College/Associates Degree

High School Diploma

Less Than High School

[ Source: U.S. Census ]

¹National Science Foundation

OFFICE, INNOVATION + TALENT | 59


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Carolyn Scott

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

© Tufshot Photography

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.

34

5%

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

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

$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

Over 150,000 square

feet of ground floor

retail space planned or

under construction

¹HR&A Advisors

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

#3

Metro for

Economic

Growth

(Raleigh-Durham)

Business Facilities | August 2015

2010-2016 | PERCENTAGE OF NET GAIN IN BUSINESSES BY

STOREFRONT CLASSIFICATION

40%

35%

30%

25%

20%

15%

10%

39%

17%

24%

26%

5%

0%

Retail

Dining

Nightlife

Personal

Services

Source: DRA


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:

• Port 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

• Existing 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

GROCERY

$165 million

$49 million

$42 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

10:30

AM

11:30

AM

12:30

PM

1:30

PM

2:30

PM

3:30

PM

4:30

PM

5:30

PM

6:30

PM

7:30

PM

8:30

PM

9:30

PM

10:30

PM

11:30

PM

12:30

AM

Fayetteville St: City Plaza

Fayetteville St from Davie St to Martin St

Fayetteville St from Hargett St to Morgan St

Fayetteville St from Martin St to Hargett 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

THE DILLON

ONE GLENWOOD

NEWS & OBSERVER

CHARTER SQUARE II

301 HILLSBOROUGH STREET

MORGAN STREET FOOD HALL

STONE’S WAREHOUSE

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

apartment building

40,000+ SF in Warehouse District

14,500 SF in Glenwood South

Redevelopment ground floor retail at corner of Martin and Salisbury Streets

Ground floor of 22-story tower on Fayetteville Street

Substantial ground floor retail on 300 block of Hillsborough Street

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

alongside small food vendors

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

cuisines and experiences.

JAMES BEARD AWARD | ASHLEY CHRISTENSEN

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

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.

Additionally, Scott Crawford of Standard Foods was a

semi-finalist for Best Chef in the Southeast for 2015.

© Tierney Farrell

© Tierney Farrell

© Carolyn Scott

© Tierney Farrell

© Tierney Farrell

© Flyboy Photography

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

Carolina BBQ at The Pit, and neighborhood gathering

spots at The Raleigh Times and Morning Times.

DINING + NIGHTLIFE | 67


MAJOR DOWNTOWN EVENTS + FESTIVALS

© Flyboy Photography

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

• The 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.

• Bida Manda, a well-regarded Laotian restaurant on Moore Square,

was named Best Restaurant in North Carolina by Business Insider.

• In 2015, Garden and Gun featured Bida Manda, Boulted Bread,

Joule Coffee & Table, Videri Chocolate Factory, and Standard

Foods.

Downtown 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.

Downtown 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.

Dollars (in millions)

$180

$170

$160

$150

$140

$130

35%

30%

25%

20%

15%

10%

5%

$120

0%

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

business owners and residents. This ordinance helps nightlife

co-exist with residents and keeps this district a growing and

vibrant part of downtown.

Source: Wake County Tax Assessor

DINING + NIGHTLIFE | 69


© 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

attractions¹

Over 1 million attendees for outdoor

festivals in downtown in 2015

15% increase in hotel room occupancy

since 2013 including 4% growth in 2015²

190+ outdoor events in 2015³

33% increase in visitors over past decade

including 7% over past three years¹

400,000+ attendees at Raleigh Convention

Center¹

TOP DOWNTOWN ATTRACTIONS IN 2015

VISITORS

NC MUSEUM OF NATURAL SCIENCES

985,905

MARBLES KIDS MUSEUM/WELLS FARGO IMAX® THEATRE

RALEIGH CONVENTION CENTER

NC MUSEUM OF HISTORY

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

NC STATE CAPITOL

RED HAT AMPHITHEATER

ARTSPACE

671,085

403,545

401,749

369,404

109,797

114,762

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

SEABOARD AVE

PACE ST

SEMART DR

HALIFAX ST

State

Government

Complex

State

Legislative

Building

WILMINGTON ST

NC

Museum

of Natural

Sciences

NC

Museum

of

History

NC State

Capitol

Marbles Kids

Museum

COR

Museum

Moore

Square

CAM

Raleigh

Artspace

City

Market

KINSEY ST

KINSEY ST

Red Hat

Amphitheater

Raleigh

Convention

Center

Duke Energy

Center for the

Performing

Arts


FESTIVALS + EVENTS

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

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

2,000,000

1,500,000

1,000,000

33%

500,000

0

2007 2009 2012 2014 2015

Some of downtown’s largest events

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

IBMA World of Bluegrass

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:

• $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

¹City of Raleigh Special Events Office

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,

Producing More than 725,000 Kilowatt Hours of Electricity

© Carolyn Scott


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

$160 74%

1,127

hotel rooms in downtown

$140 72%

$120 70%

$100 68%

$80 66%

$60 64%

$40 62%

$20 60%

$- 58%

Downtown Wake County North Carolina U.S.

Average Daily Rate Revenue Per Room 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%

0%

Hotel Room Occupancy Average Daily Room Rate Revenue Per Room

10%

increase in revenue per room

last year; up 29.5% over 2013 to

$101.88 per room

Downtown Raleigh

Wake County

Source: STR Global and Greater Raleigh Convention and Visitors Bureau

TOURISM | 75


© 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.

• Nearly 40 art galleries and arts organizations,

entertainment venues and performance groups based in

downtown

• Capacity 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

• Arts 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

• Music festivals include IBMA World of Bluegrass,

Hopscotch, Oak City 7, and Pickin’ in the Plaza

• Newly adopted Raleigh Arts Plan articulates a shared

vision and goals for improving cultural life of Raleigh

MUSIC | BIRDS OF AVALON

© Tim Lyvtvinenko

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

MAJOR DOWNTOWN EVENTS + FESTIVALS

Photo Courtesy of Artsplosure

© Tierney Farrell

© Dan Hacker Photography © Tierney Farrell

© Tierney Farrell

© Armes Photography


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

such a diverse community. Whether it’s the food, the bar scene, or the

© Tufshot Photography

museums, there is always something to do. ”

– BJ BARHAM, AMERICAN AQUARIUM


MUSIC

© Tierney Farrell

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.

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.

¹Interview, The MSU Spokesman, April 9, 2013

ARTS + CULTURE | 83


© 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.

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

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

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 Raleigh-

Durham International Airport to study ways that Wake

County can greatly increase its public transit coverage

and infrastructure. The plan’s current recommendations

include:

• Commuter Rail Transit: 37 miles of service on

existing tracks to connect downtown with Garner,

NC State, Cary, Morrisville, RTP and Durham

• Bus Rapid Transit (BRT): 20 miles of BRT with

downtown serving as a central hub

• More 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

I-40 runs

just south of

downtown

Monthly parking is 36% below the

U.S. national average for downtowns,

according to a 2012 report1

$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

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

Located just 20 minutes from downtown

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


SUSTAINABILITY

© Flyboy Photography

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:

• Moore 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.

• Dix 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.

• Market 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.

• Devereux 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

FRED

FLETCHER

PARK

HALIFAX

COMMUNITY

CENTER &

PARK

MORDECAI

HISTORIC

PARK

FUTURE

DEVEREUX

MEADOWS

RALEIGH

CITY

FARM

HALIFAX

MALL

OAKWOOD

CEMETERY

NC MUSEUM OF

NATURAL SCIENCES

NC MUSEUM

OF HISTORY

PULLEN

PARK

NASH

SQUARE

MARBLES

KIDS MUSEUM

MOORE

SQUARE

CITY

CEMETERY

CAM

FUTURE DIX

PARK

LENOIR ST

PARK

RED HAT

AMPHITHEATER

CITY

PLAZA

DUKE ENERGY

CENTER FOR THE

PERFORMING

ARTS

CHAVIS

PARK

Green Space

Plaza

Campus

Museum or other Civic Building

Greenway or On-street Bicycle Link

Creek

SOURCE: City of Raleigh

CONNECTIVITY + SUSTAINABILITY | 89


© Stuart Jones

© Flyboy Photography

© Carolyn Scott

© Carolyn Scott


ENERGY + FOOD

SYSTEMS

Energy

Raleigh City Farm

© Stacey Simeone

• LEED 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.

• Solar: 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

• Charging 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

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.”

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

pounds of trash removed

equals the weight of about

2 fire trucks

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

MAJOR DOWNTOWN EVENTS + FESTIVALS

© Stacey Simeone

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.

© Carolyn Scott

© Carolyn Scott


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

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 EXPENSES 2015-2016 COMBINED BUDGETED REVENUES

8%

SP

4%

MD

8%

SB

9%

EP

38%

SH

21%

CS

10%

RA

27%

AL

25%

FS

50%

PA

Safety, Hospitality + Clean (SH)

Advocacy + Leadership (AL)

Retail Attraction + Merchant Promotions (RA)

Events Production (EP)

Strategic Branding + Community Communications (SB)

Strategic Partnerships + Stakeholder Engagement (SP)

Property Assessment (PA)

Fee for Service (FS)

Corporate Sponsorships (CS)

Member Dues (MD)

DRA IMPACT | 95


DRA BOARD, STAFF & ACKNOWLEDGEMENTS

OFFICERS + EXECUTIVE COMMITTEE BOARD OF DIRECTORS ACKNOWLEDGEMENTS

Jason Smith

Chair

18 Seaboard Restaurant

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

PROFESSIONAL STAFF

Jean Carroll

Events Coordinator

Roxanne Coffey

Office Manager

David A. Diaz

President + CEO

Kimberley Jones

Executive Assistant

Jeff Bandini

Parker Poe

Shelley Blake (Ex-Officio)

NC Dept. of Transportation

Pam Blondin

Deco Raleigh

Marty Clayton

Duke Energy

Leon Cox

Sheraton Raleigh Hotel

Tashni Dubroy

Shaw University

Sally Edwards

Marbles Kids Museum

Tim Giuliani (Ex-Officio)

Greater Raleigh Chamber of

Commerce

Sue Glennon

Hampton Inn & Suites Hotel at

Glenwood South

Neil Gray

JDavis

Ruffin Hall (Ex-Officio)

City of Raleigh

Jim Hartmann (Ex-Officio)

Wake County

Bill King

Planning + Development Manager

Ashley Melville

Business Development Director

Craig Reed

Events Manager

Stacey Simeone

Marketing Director

Andy Holland

SunTrust Bank

Chad T. Lefteris

UNC Rex Healthcare

J. Rich Leonard

Campbell University School of Law

D. O’Hara Macken

Ipreo

David Meeker

Downtown Resident, West at North

Joe Meir

Blue Ridge Realty, Inc

Gregg Sandreuter

Hamilton Merritt

Nate Spilker

Citrix

Josh Stein (Ex-Officio)

NC General Assembly

Andrew Stewart

Empire Properties

Caroline F. Welch

ABC 11

Danny Vivenzio

Communications Manager

Stephanie Wilser

Finance Manager

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

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