Terence McCabe Managing Principal – North Carolina EYP
What milestones or projects have helped establish EYP in the Triangle region? One project that really set our place in the Triangle region was the UNC REX Heart and Vascular Hospital, which opened in 2017. That was the largest healthcare project in Raleigh at the time. We were really proud of that. It was the springboard for a lot of other projects. Right after that, we jumped into UNC Hospital’s Surgical Tower, currently the largest project going on in Chapel Hill. We’ve been working with UNC Health’s Strategic Plan, which is their plan for the next 10 or 15 years. What separates us from the competition is that we’re not passively just designing for tomorrow. We’re looking beyond what clients are asking for. We’re looking 10 or 15 years down the road. What trends are emerging in the healthcare space? For healthcare, it’s total flexibility. Designing patient rooms that are adaptable to not only patient needs but also to changes in technology. The technology is changing so quickly that rooms can become outdated the second they come online, so we’re looking to change that. On the education side of that, we’re seeing a change away from the traditional classroom/lecture style to more hands-on learning spaces. We’re designing a lot of simulation labs in which student nurses, for example, can go into a real-life environment and actually practice their technique. How would you describe the demand for construction in the Raleigh-Durham area? We’re lucky in North Carolina. I feel like we’ve gotten through the pandemic better than other states have. Healthcare is a very busy market. It slowed during the height of the pandemic but it never really stopped. It’s a continual need and I see it getting even busier. Higher education has slowed down as a market. Schools have experienced a reduction in income from the lack of students and tuition. The impact of that has been a reduction in higher education projects. Hopefully, that will pick up when students return to school. 62
| Invest: Raleigh-Durham 2021 | COMMERCIAL REAL ESTATE…
Asking rents in Raleigh-Durham were at $1,263 per month in 1Q21, up 3.9% Y/Y
After rising through the start of the pandemic, the vacancy rate tightened as 2021 began. Apartment vacancy declined 50 basis points in 1Q21, finishing at 8.5%, NorthMarq reported. Asking rents stand at $1,263 posting a 3.9% growth year-over-year. After an active 2020 in terms of assets trade, the 2021 investment market experienced closer to normal conditions through 1Q21. As such, 789 units were delivered through the first quarter and approximately 5,268 units are under construction, NorthMarq reported. Though Wake and Durham counties set the foundation for current and future development opportunities in the Triangle market, the region features a strong core of surrounding areas ripe for continued growth largely due to land availability and business relocation activity, all of which bodes well for the residential and multifamily sectors. “Several areas are emerging, including Johnston County, the Garner/Clayton area, and the US-1 /South Sanford area. I-40 continues to see growth for many different reasons, including access into Raleigh and the Downtowns. Companies such as Amazon are locating in these areas because of transportation advantages. I-40 also provides easy access to the Raleigh-Durham International Airport. The Sanford area provides immediate access to available land. Residential developers in that area are proposing well over 2,000 homes over the coming years,” Barnes said. According to Forbes, the Triangle’s robust educational system and growing population position the region for a strong post-COVD recovery, the publication reported, citing a study by Moody’s Analytics. Both Raleigh and Durham landed on the report’s Top 10 cities expected to make a strong recovery post-COVID. “The climate, the education-focused economy, the proximity to both beach and mountains and having a lifestyle that is a ( )
