North Carolina’s rapid population growth, lower cost of living and deep talent pool, all combined with the Research Triangle—the nation’s largest research park and a thriving hub for life sciences, technology and innovation—act as a catalyst for development. As a result, more than 4.6 million square feet of office space was underway in the metro as of November, according to CommercialEdge.
Some 1.5 million square feet of office space was delivered year-to-date, with an additional 1.5 million square feet slated for completion by year-end. Projected deliveries for this year are expected to surpass last year’s completions of 2 million square feet by 30 percent. As the life sciences sector continues to showcase strong performance trends, an uptick in laboratory and research space development is expected going forward.
CommercialEdge identified the largest office projects underway in the metro as of November, listed below.
5. TOWER TWO AT BLOC
Heritage Properties is developing the 10-story Tower Two at Bloc in Raleigh’s central business district, at 621 Hillsborough St. Upon completion, scheduled for early 2021, the $108 million development will total 271,500 square feet, including 241,500 square feet of office space, 30,000 square feet of retail on the second floor, the city’s largest urban courtyard and a 665-stall parking garage.
M&T Bank provided $73.4 in construction financing. Gensler handles the design services, while Whiting-Turner Contracting Co. serves as the general contractor. The property is the latest addition to Bloc, a mixed-use project encompassing another office tower dubbed One Glenwood and a 126-key Origin Hotel. Tower Two is less than a mile from North Carolina State University’s main campus and Centennial Campus. Due to its proximity to a talented workforce, Envestnet has chosen the project as its upcoming North Carolina headquarters.
4. THE STITCH
Equator Capital Management and OCS Capital are developing the 248,000-square-foot office project. Construction on the single-story property started in June 2019, with completion scheduled for the end of 2020. Knighthead Funding provided $34 million in construction financing. The development team includes Gensler, Choate Construction Co. and Kimley-Horn.
The Stitch represents the redevelopment of the 1981-built, formerly vacant Morrisville Outlet Mall into creative office space. The asset is situated on 25 acres at 1001 Airport Blvd. in Morrisville, N.C., close to Interstate 40 and Raleigh-Durham International Airport and 5 miles from Research Triangle Park.
3. RALEIGH CROSSING
The Fallon Co. started work on Raleigh Crossing in September 2019. The 292,543-square-foot, 10-story property includes 280,381 square feet of office space and 12,162 square feet of first-floor retail, with completion scheduled for late 2021. First National Bank of Pennsylvania originated an $85.9 million construction loan on behalf of the developer.
The Duda|Paine Architects-designed project is located at 301 Hillsborough St. in downtown Raleigh and is the first phase of a mixed-use project that will also include a 165-key hotel, a 135-unit community and 5,500 square feet of retail space. Upon completion, software startup Pendo plans to move its corporate headquarters to the building.
2. ADVANCE AUTO PARTS TOWER
Kane Realty Corp.’s upcoming 336,834-square-foot asset will house the headquarters of Advance Auto Parts, Raleigh’s only Fortune 500 company. The building, slated for delivery by late 2020, will include 328,600 square feet of office space, 8,234 square feet of first-floor retail and eight levels of parking. Bank OZK provided $84.7 million in construction financing. Duda|Paine Architects was selected to spearhead the design efforts.
1. HUB RTP
The largest property underway is Hub RTP, a 44-acre mixed-use community in the metro’s Research Triangle Park. The property is emerging at the junction of NWC State Route 54 and Davis Drive and is centrally located between Raleigh, Durham and Chapel Hill, N.C. The Research Triangle Foundation broke ground on the $1.5 billion project this September and completion is slated for 2023.
The project will include 1 million square feet of office space, a significant portion of retail, 800 residential units, a four-star hotel and 14 acres of green space. KDC is responsible for developing the office component and the infrastructure for the project. Faulconer Construction Co. acts as the general contractor, while Duda|Paine Architects provided the design plans.
Original Source: Commercial Property Executive