“Two mixed-use projects in Raleigh and Durham, North Carolina, have spurred new development in both Triangle cities,” says Michelle Rich, president of Rich Commercial Realty. These projects are Progress Energy’s development in downtown Raleigh and Capital Broadcasting’s American Tobacco redevelopment project in downtown Durham.

Progress Energy has hired Carter & Associates of Atlanta to be master developer of the downtown project, and Atlanta-based Cooper Carry is the architect of record. Capital Broadcasting has hired Keith Corporation of Charlotte, North Carolina, to manage the American Tobacco project.

New developments that have resulted from these mixed-use projects include the construction of two new 1,000-space parking decks and a commitment to a performing arts center in Durham. Raleigh is opening up the Fayetteville Street Mall and evaluating the feasibility of building a new convention center. “The Triangle Transit Authority’s progress on light rail will make the link to the two cities even more dynamic and synergistic,” notes Rich.

Several major leases have been signed recently at the American Tobacco project: McKinney + Silver (43,000 square feet), Duke University (150,000 square feet), Glaxo Smith Kline (75,000 square feet) and Compuware (75,000 square feet).

In downtown Raleigh, the current vacancy rate is 6.5 percent. Downtown Durham’s vacancy is in the 24 percent range with only three Class A office buildings listed. Generally buildings are not counted until they are occupied so this does not include what will be available at American Tobacco. The range for Class A rental rates in the Triangle area is $18.50 to $22.50 per square foot.

Keep an eye on two soft markets: Interstate 40/Research Triangle Park (RTP) corridor (25 percent vacant) and Cary (21 percent vacant), Rich suggests. “It’s a great time to be a tenant, especially in the RTP and Cary markets,” she adds.


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