SNAPSHOT, APRIL 2004

Greensboro/Winston-Salem/High Point Office Market

Bobby Finch Triad Commercial Properties

In Greensboro/Winston-Salem/ High Point (the Piedmont Triad), North Carolina, most developers are shying away from any new speculative office projects, according to Bobby Finch of Triad Commercial Properties. “Other than Carolina Investment Properties’ 65,000-square-foot project that is getting ready to come on line, the only new development is being driven by build-to-suit demand,” he says.

Build-to-suit projects under construction include Truliant Federal Credit Union’s 120,000-square-foot corporate headquarters, Piedmont Ear Nose & Throat’s new 22,000-square-foot facility and Sara Lee Knit Products’ 350,000-square-foot corporate headquarters expansion. Announced projects that are not yet under construction include Krispy Kreme Doughnut Corporation’s 120,000-square-foot corporate headquarters and Citigroup’s 165,000-square-foot call center facility. Koll Development Company of Dallas has been awarded the Citigroup project.

The majority of the office development continues to take place in the Airport submarket. “This is due in large part to the airport area being a central location to all of the Triad cities,” says Finch.

One new project in the Airport submarket is Premier Center, a 90-acre business park located on Highway 68/Eastchester Drive. The developer, Carolina Investment Properties, is planning to break ground on a 65,000-square-foot, speculative, Class A office building in April.

“While call center users have been the most active tenants looking at expanding or relocating to the Triad area, the region is actively recruiting additional corporate and high-tech companies,” Finch adds. “Winston-Salem’s Piedmont Triad Research Park also has been actively recruiting biotech companies. The biotech campus has been experiencing steady growth; Wake Forest University Medical Center is the driving force behind the park.”

New leases include two by Highwoods Properties at Jefferson Village, the company’s newest office building, located at 1501 Highwoods Blvd. in Greensboro. Highwoods Properties signed First National Bank Southeast to a 24,975-square-foot lease to relocate its corporate headquarters to Greensboro. Highwoods also signed Apex Analytix Inc., a Greensboro software company, to a 17,000-square-foot lease.

Liberty Property Trust signed American Express Financial Advisors to a 12,000-square-foot lease at the end of 2003. American Express has taken occupancy at Lakeside One, located at 4100 Mendenhall Oaks Pkwy. in High Point.

The Starmount Company has signed carpet manufacturer Mohawk Industries Inc. to a 23,342-square-foot lease at 706 Green Valley Rd. in Greensboro.

Class A rental rates range from $17 to $21 per square foot, full service. Class B rates range from $12 to $15 per square foot.

Overall vacancy rates are in the 18 percent range; however, the Airport, Winston-Salem West and Greensboro Northwest submarkets’ vacancies are closer to 14 percent.

“The Airport submarket should remain active for the near future, but also keep an eye on eastern Greensboro,” Finch says. “This area may see a boost from the strong interest by the Citigroup call center project and the opening of the southeast portion of the new Painter Boulevard beltline.”


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