2013 State of Downtown Raleigh by Downtown Raleigh Alliance

STATE OF DOWNTOWN

RALEIGH THE URBAN CAMPUS FOR THE YOUNG + INNOVATIVE 2013 | DOWNTOWN RALEIGH ALLIANCE

LETTER FROM DRA PRESIDENT + CEO THE STATE OF DOWNTOWN IN 2013: THE RISE OF THE YOUNG AND INNOVATIVE

The Downtown Raleigh Alliance (DRA) created this report specifically for investors, developers, brokers, and economic developers whose clients are interested in exploring the possibility of a Central Business District (CBD) location. It is chock-full of insightful market trends presented in a graphicallyappealing and easy-to-read format. We hope you find it useful. Please contact me if you have any questions about the report: daviddiaz@downtownraleigh.org.

Downtown is emerging as a center for the young and innovative. Much like Austin’s downtown, Raleigh’s downtown will be described as a technology downtown that happens to be located in a state capital. We believe downtown is the premier location for technology companies. Here are a few proof points to illustrate this trend: • 340 employees (average salary: $70,000) coming to downtown in 2014 as Citrix Systems announced its Raleigh regional division moving to the Warehouse District • 35 startup companies housed in Hub Raleigh, a co-working space designed to connect entrepreneurs globally • 110,000 square feet of office space in 227 Fayetteville Street, which is being converted to Class A office space for “creative class” companies • 1,000 employees (average age: 28; average salary: $80,000) coming to downtown this summer as Red Hat completes its relocation of its global headquarters As downtown attracts more technology companies that hire young and talented workers, we expect the demand for downtown living to skyrocket. With over 1,600 apartments in the pipeline, downtown is gaining the residential infrastructure it needs to support the young and talented population who will work in the CBD and want an urban living experience. New living and working spaces combined with the numerous retailers, restaurateurs, and other great amenities such as walkability, are shaping downtown into a vibrant, innovative, and creative place prepared for growth.

Copies of this report are free and can be ordered at 919.832.1231. They are also available on our website at www.YouRHere.com.

DAVID A. DIAZ | DOWNTOWN RALEIGH ALLIANCE, PRESIDENT + CEO

AT A GLANCE

DEVELOPMENT + INVESTMENT

OFFICE + EMPLOYMENT

SHOPPING

DINING + NIGHTLIFE

LIVING

TOURISM

ARTS + CULTURE

ACCESS + CONNECTIVITY

STAKEHOLDERS

st R d.

AT A GLANCE lvd.

Wa ke

For e

Wade Av e.

Capit al B

St. ry’s Ma

Glenwood Brooklyn

St.

Oberlin Rd.

Pilot Mill Mordecai William Peace University

Cameron Park

lsb

oro

St.

Boylan Ave.

ugh

Glenwood South

NC State University

Capital

Glenwood Ave.

Hil

East St.

Peace St.

Lane St. Jones St.

Campbell School of Law

Red Hat

Warehouse Ampitheater

South St.

Downtown Element

Bloodworth St.

Person St.

Blount St.

Wilmington St.

Fayetteville St.

rs S

Martin St. Davie St. Cabarrus St. Lenoir St.

Duke Energy Center for the Performing Arts

Shaw University

Hunter-Thompson Ro c

South Park

rry

Rd .

Martin Luther King Jr. Blvd.

Hargett St.

W ke La

Moore Square

d. rR

ele

City Plaza

Raleigh Convention Center

Fayetteville Street

Oakwood

New Bern Ave.

Salisbury St.

McDowell St.

Dawson St.

Boylan Heights

Harrington St.

vd .

West St.

Oakwood Ave.

Edenton St.

Morgan St.

W es ter n

St. Augustine’s University

1 Mile Radius

110 block CBD 2:1 ROI on public investment 615 parcels $160 million projects completed

96,000 RESIDENTS WITHIN 3 MILES

40,046 STUDENTS WITHIN 2 MILES 5 million+ square feet office space 1,100 luxury condos 120 condos sold and resold 3.3 million visitors

$146 million in restaurant revenue 1,126 hotel rooms

38 NEW STREET LEVEL MERCHANTS 28 venues with outdoor dining 63.9% hotel room occupancy 108 creative outdoor festivals

HIGHLIGHTS

#1 AMONG FASTESTGROWING CITIES IN THE U.S. (Raleigh-Cary) - Forbes, March 2013

• Downtown is the center of

innovation

•4 6% of residents in the CBD have a college degree or higher •3 4,000 pedestrians walk through the Fayetteville Street District during a two and one-half hour lunch period

•1 00% of new condos are sold • Collaborative co-working spaces are nurturing creative class startups • Downtown’s restaurants outperform Wake County’s by generating 55 times the revenue per square mile • Over 1,600 apartment units are planned or under construction

$2.3 BILLION in completed, planned or under construction development projects in the CBD since 2003

#1 BEST QUALITY OF LIFE (Raleigh) - Business Facilities Magazine, July/August 2012

SOURCES: Alta Planning + Design; Downtown Raleigh Alliance (DRA); Integrated Postsecondary Education Data (IPEDS); Greater Raleigh Convention and Visitors Bureau; Smith Travel Research, U.S. Census Bureau; Wake County Revenue Department.

AT A GLANCE

• Of the 40,000+ college students located in downtown, 38% graduate with majors in a STEM (science, technology, engineering, mathematics) discipline

•1 in 4 residents is between the ages of 25-34

DOWNTOWN RENAISSANCE

1995 | Downtown lost retail anchors Hudson Belk and Briggs Hardware. 1998 | PINE STATE CREAMERY at 414 Glenwood Avenue is designated a Raleigh Historic Landmark. © www.gottschallphotography.com

1993 | Odd Fellows Building at 19 West Hargett Street designated a Raleigh Historic Landmark.

1990 | WELLS FARGO CAPITOL CENTER (formerly the Wachovia Building) and the BB&T Building were completed adding nearly 100,000 square feet of Class A office space and becoming the two tallest downtown buildings.

2002 | PERFORMING ARTS INFRASTRUCTURE EXPANSIONS—Performing Arts Center adds Fletcher Opera Theater, Kennedy Theater, and Meymandi Concert Hall.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

1992 | MOORE SQUARE HISTORIC Overlay District designated.

1992 | AS PART OF THE BICENTENNIAL CELEBRATION, a time capsule was planted in Nash Square.

1994 | THE NC MUSEUM OF HISTORY completed.

2000 | THE NC MUSEUM OF NATURAL SCIENCES opens.

1991 | FIRST NIGHT RALEIGH was held for the first time on December 31, 1991.

1996 | THE DOWNTOWN RALEIGH ALLIANCE was created to revitalize downtown.

2002 | RALEIGH’S DEPOT DISTRICT listed in the National Register of Historic Places. Courtesy of Carter Worthy

2001 | MAHLER BUILDING at 228 Fayetteville designated a Raleigh Historic Landmark.

2009 | CAMPBELL LAW SCHOOL opens. 2006 | RALEIGH WIDE OPEN—Fayetteville Street transformed downtown.

2009 | CITY PLAZA, downtown’s premier outdoor event location, opens: • First Winterfest with outdoor ice rink—the largest in the region

©Carolyn Scott

2005 | $60 MILLION residential construction completed—The Dawson, The Paramount, and The Hudson.

2010 | RED HAT AMPHITHEATER opens. 2010 | RALEIGH DOWNTOWN FARMERS MARKET launches in City Plaza.

©Luster Studios

©Sterling Stevens

2004 | TWO PROGRESS PLAZA (now Red Hat Tower) completed—the $100 million project added over 350,000 square feet of office space.

2008 | $630 MILLION of completed projects. Residential boom: 426 luxury condominium units in RBC Plaza (now PNC Plaza), West, 222 Glenwood.

2012 | THE NATURE RESEARCH CENTER GREEN SQUARE opens drawing 1.2 million. © Bryan Regan

2008 | RALEIGH CONVENTION CENTER and Raleigh Marriott City Center open drawing new audiences to downtown.

2012 2013

2011 | CAM RALEIGH (Contemporary Art Museum) opens anchoring the Warehouse District.

2013 | LAUNCH A 10-YEAR STRATEGIC VISION PLANNING PROCESS by DRA and the City of Raleigh.

AT A GLANCE

1. C omplete a Fayetteville Street renaissance 2. F und and build a new convention center and hotel 3. Improve pedestrian environment 4. Improve business climate through regulatory reform 5. Expand downtown management

2007 | $123 MILLION developments—Heilig Levine is renovated, Marbles Kids Museum expands, and diverse residential options completed—the Quorum Center, Palladium Plaza, Carlton Place, and Chavis Heights.

2003 | LIVABLE STREETS PLAN: Five transformative projects in five years:

©Carolyn Scott

2003 2004 2005 2006 2007 2008 2009 2010 2011

COMMUNITY PROFILE DOWNTOWN RALEIGH RESIDENTS ARE YOUNG, SMART, AND CREATIVE, AND THEY WANT AN URBAN LIFESTYLE. FORTY-SIX PERCENT HOLD A BACHELOR’S DEGREE OR HIGHER. Raleigh is home to more than 400,000 residents and is growing exponentially. Wake County’s population will soon top one million—nearly twice the number of people as in 2000. Downtown is a key component in the population explosion.

transplants moved from a different state or country. Although the current median household income for residents in downtown is slightly lower than that of the city of Raleigh, it will soon be on par with the city. Hundreds of new highend rental units, combined with the growing number of young professionals moving to the area, indicate the upward increase.*

More than half of center city residents relocated to their downtown homes during 2010. One in every four of those

urban Raleigh resident is 30.1, more younger than the national median age.

The median age of an than seven years DENSITY | PEOPLE PER SQUARE MILE

AGE | 1 OUT OF 4 DOWNTOWN RESIDENTS IS BETWEEN THE AGES OF 25-34

14%

The population within a one mile radius of the CBD will grow at a rate of 2.7% between 2012 and 2017—nearly four times the national rate.†

16%

15%

16%

24%

POPULATION | EXPONENTIAL GROWTH AT CENTER

13%

199,000 | 5 mile radius from Capitol 95,000 | 3 miles

USA Raleigh-Cary MSA CBD§ Under 19

35 - 44

65+

CBD‡

City of Raleigh

Wake County

20 - 24

45 - 54

15,000 | 1 mile

4,728/SM

2,826/SM

1,079/SM

25 - 34

55-64

5,000 | In the CBD

[ SOURCE: Micah Kordsmeier for DRA, U.S. Census 2010 ]

[ SOURCE: American Community Survey, 2007-2011 ]

[ SOURCE: STDBonline Esri forecasts for 2012 ]

*American Community Survey, 2006-2010, Census Tract 501 . // **STDBonline, U.S. Census Bureau, Census 2010 Summary File 1. ESRI Forecasts for 2012. // †STDBonline, U.S. Census Bureau, Census 2010 Summary File 1. ESRI Forecasts for 2012 and 2017. // §Census Tracts 501, 503, 504, 509, 510 . // ‡Census Block Groups with Centroid within One Mile of the Capitol.

MOORE SQUARE DISTRICT Named for its urban park, this district hosts more than 38,000 guests each week through the Moore Square Transit Center and features the historic City Market, Marbles Kids Museum, and an assortment of entertainment and dining options. GLENWOOD SOUTH DISTRICT This district known for its restaurants, bars, and nightclubs now includes a hotel, 500 condo units, and 968 rental units planned and under construction.

FAYETTEVILLE STREET DISTRICT With world class theater venues, skyscrapers full of Class A office space, an outdoor amphitheater, premier public space for outdoor events, and a growing retail and restaurant community, this district is the heart of downtown’s renaissance. © Carolyn Scott

CAPITAL DISTRICT The Capital District is the power center of North Carolina featuring the State Capitol, Governor’s Mansion, and 3.5 million square feet of government office space.

WAREHOUSE DISTRICT Home to the Contemporary Art Museum, several eclectic retail and dining options, and future sites of Citrix and Union Station, the Warehouse District is changing rapidly.

AT A GLANCE

MELROSE KNITTING MILL

The $1.25 million investment in the historic Melrose Knitting Mill reinvented the space that now features the 12,200 square foot Moroccan restaurant Babylon and a beautiful 7,000 square foot patio. PHOTO BY: Cheryl Gottschall

ÂŠ www.gottschallphotography.com

DEVELOPMENT + INVESTMENT “DOWNTOWN DEVELOPMENT GENERATES MORE TAX VALUE AND OFFERS A BETTER RETURN ON INVESTMENT THAN SUBURBAN LOW DENSITY AREAS. IN OTHER WORDS, SUPPORTING DOWNTOWN DEVELOPMENT ACTUALLY HELPS KEEP CITYWIDE PROPERTY TAXES STABLE.”

-Mitchell Silver, Chief Planning Officer, City of Raleigh Planning and Development

DOWNTOWN IS A HIGH YIELD INVESTMENT. Public investment in infrastructure—the Raleigh Convention Center, Red Hat Amphitheater, Fayetteville Street, and City Plaza—transformed the CBD. These landmark projects paved the way for downtown’s continued revitalization and stimulated millions of dollars in private development. The highly anticipated multimodal Union Station will soon serve the region’s exploding population as the center for bus, high speed, and commuter rail bringing even more value to downtown investment.

Five projects totaling $160 million were completed during 2012. There are an additional $371 million under construction, and

projects totaling $504 million are in the planning stages. The multi-family residential market is booming in downtown. There are $320 million invested in planned and under construction projects expected to yield over 1,600 rental units. During the last decade, at least 53 public and private development projects were completed in the CBD. With more than half of one billion dollars in planned investments and more than half of one billion dollars of projects completed and under construction during the last year, there is no sign of growth slowing any time soon.

$2.3 BILLION completed, under construction and planned projects in the CBD in just 10 years

TAX REVENUE | EXPONENTIAL RETURN ON DENSE DOWNTOWN DEVELOPMENT IN THE CITY OF RALEIGH

DEVELOPMENT + INVESTMENT

Tax Billed (per acre) $0

$425,000 Raleigh Municipal Boundary

[SOURCE: City of Raleigh Planning and Development] [ Ray Aull ]

PLANNED DEVELOPMENT

CLARION The 20-story, 202 room Clarion Hotel changed ownership in September 2012 in a $9.35 million transaction. The new owner, Sound Hospitality Management, plans to invest $10 million to upgrade the hotel with a new façade and a number of interior improvements. It will be converted back to a Holiday Inn, which it was in 1969.

227 FAYETTEVILLE Renovations are scheduled to begin in early 2013 on the 10-story “Old Wachovia Building” at 227 Fayetteville making 110,000 square feet of office space available. The space, designed with entrepreneurial technology startups in mind, will have an open floor plan. In addition to ground floor retail space, there are talks to partner with the city to create public plazas on each side of the building designed for events. LRC Opportunity Fund purchased the building for $17 million and plans to invest $8 million for its makeover. UNION STATION The $60 million first phase of the planned Union Station multimodal complex includes renovation of the Dillon Viaduct Building, construction of various track and platform improvements, and the construction of the proposed West Street Extension. This Warehouse District station will make the CBD the gateway to the south.

CITRIX Citrix Systems is developing the Dillon Supply Warehouse property in the Warehouse District for its new $25 million downtown Raleigh headquarters. The current 55,000 square foot building will be converted into a three-story, 130,000 square foot office complex featuring an eightlevel parking deck, 14,000 square feet of retail space, and a pedestrian amenity area.

DOWNTOWN | PROPERTY VALUE + TAX REVENUE The CBD represents just .05% of the City of Raleigh’s developable property...

...but it generates 7.3% of the property tax base, even with 30% of the CBD being tax exempt.

.05%

7.3% Property Outside CBD

99.05%

Tax Revenue Outside CBD

CBD

92.7%

[SOURCE: City of Raleigh, The 2030 Comprehensive Plan for the City of Raleigh, 2009]

“The future for downtown Raleigh has never been so bright. Safe, friendly, fun, vibrant, and always surprising. More is happening in downtown Raleigh today than at any time in its history. Many of the region’s best restaurants, finest clubs, creative art studios, and nationally renowned museums are here. Businesses of all kinds, from technology to financial services, are moving their offices to downtown. And people of all different types, of all ages, with unique backgrounds and interests are drawn to downtown, making it a very engaging place to live. There are plenty of homes, condos, and apartments to choose from, with more on the way.” - Gregg Sandreuter, President, Hamilton Merritt, Inc.

THE CITY’S RETURN ON PUBLIC INVESTMENT in the CBD is substantial. During the last decade, the $730 million in planned and completed public infrastructure resulted in $1.5 billion of private development. Furthermore, great public spaces attract merchants

and enables them to thrive, thus producing more tax revenue. As downtown launches a new 10-year vision planning process, city officials are cognizant of measuring the ROI on a public project’s ability to net revenue.

DENSITY | VALUE IN CBD ASTRONOMICALLY HIGHER

Single Family Residential Crabtree Valley Mall 3-4 Story Residential 3-Story Office

$2,078 $2,837 $22,175 $26,098

Outside CBD CBD

A six-story mixed-use office building located in downtown generates

$110,461 in municipal tax dollars per acre. A big box store outside the CBD yields just $2,078.

$30,057 $110,461

6-Story Mixed-Use

DEVELOPMENT + INVESTMENT

Big Box Store

Municipal Property Tax Yield (per acre)

SOURCES: City of Raleigh Planning and Development, DRA, Wake County Revenue Property GIS Data

DEVELOPMENT

In 2012, approximately $160 million in diverse development projects were completed, returning to 2009 investment levels. Projects totaling $380 million are under construction, and there are an additional $504 million in the planning stages.

G&S BUILDING The G&S Building, built in the late 1800s and formerly the Goodman and Satisky Department Store, was updated in 2012 with a $3 million expansion project. The 12,000 square foot space houses professional offices, retailers, and the Raleigh Times Bar. The popular local watering hole now includes a rooftop deck with the most sought-after view of downtown Raleigh.

NATURE RESEARCH CENTER The $130 million Green Square project, completed in 2012, is a mixed-use, two city block complex comprised of the 80,000 square foot Nature Research Center, offices for the NC Department of Environment and Natural Resources, and a parking deck for the NC Department of Administration.

SOURCE: Downtown Raleigh Alliance

HAMPTON INN & SUITES The recently completed $15 million Hampton Inn & Suites in Glenwood South adds a needed 126 guest rooms to downtown’s hotel inventory. This boutique-style, six-story, 78,600 square foot building is contemporary, eco-friendly, and energy efficient. It features an additional 960 square feet of retail space on bustling Glenwood Avenue.

FIRST PRESBYTERIAN CHURCH With 11,704 square feet of new construction completed in 2012, the First Presbyterian Church Raleigh is better able to serve its membership. The greater community will also benefit from the $10.5 million project that included renovations, which provide office and gathering spaces for outreach partners and service delivery programs.

PROJECT NAME

ADDRESS

INVESTMENT

TYPE

GREEN SQUARE (NRC & DENR)

W. Jones St. & N. McDowell St.

$130,000,000

Museum/Government

HAMPTON INN & SUITES-GLENWOOD SOUTH

600 Glenwood Ave.

$15,000,000

Hotel

FIRST PRESBYTERIAN CHURCH

S. Salisbury St. & W. Morgan St.

$10,500,000

Religious

G&S BUILDING

E. Hargett St. & S. Wilmington St.

$3,000,000

Mixed-use Commercial

MELROSE KNITTING MILL

300 N. Dawson St.

$1,250,000

Mixed-use Commercial

WAKE COUNTY JUSTICE CENTER

W. Martin St. & S. McDowell St.

$187,700,000

Public Sector

425 N. BOYLAN AVENUE

425 N. Boylan Ave.

$44,500,000

Mixed-use Residential

STATE EMPLOYEES CREDIT UNION

N. Salisbury St.

$40,000,000

Commercial

RED HAT TOWER

E. Davie St. & S. Wilmington St.

$30,000,000

Commercial

CITRIX

West St. & Hargett St.

$25,000,000

Commercial

ST. MARY’S SQUARE

600 St. Mary’s St.

$22,000,000

Mixed-use Residential

NORTH CAROLINA STATE BAR

N. Blount St. & E. Edenton St.

$16,000,000

Commercial

111 SEABOARD

111 Seaboard Ave.

$15,000,000

Commercial

CHARTER SQUARE

501 Fayetteville St.

$130,000,000

Mixed-use Commercial

UNION STATION (PHASE I)

510 W. Martin St.

$60,000,000

Public Sector

SKYHOUSE

E. Martin St. & S. Blount St.

$60,000,000

Mixed-use Residential

BLOUNT STREET COMMONS

N. Blount St. & N. Person St.

$50,000,000

Mixed-use Residential

EDISON APARTMENTS

E. Davie St.

$40,000,000

Mixed-use Residential

LINK APARTMENTS

N. West St. & W. Jones St.

$30,000,000

Residential

THE GRAMERCY

Glenwood Ave. & W. North St.

$30,000,000

Residential

L BUILDING

W. Davie St. & S. McDowell St.

$26,000,000

Mixed-use Residential

WEST APARTMENTS

413 W. North St.

$22,000,000

Residential

RESIDENCE INN BY MARRIOTT

Salisbury St. & Lenoir St.

$20,000,000

Hotel

CLARION HOTEL

320 Hillsborough St.

$10,000,000

Hotel

227 FAYETTEVILLE

227 Fayetteville St.

$8,000,000

Commercial

CAROLINA ALE HOUSE

Glenwood Ave. & Tucker St.

$7,500,000

Commercial

BOYLAN PEARCE BUILDING

Fayetteville St.

$5,500,000

Mixed-use Commercial

PEACE STREET TOWNES

Peace St. & Person St.

$5,000,000

Mixed-use Residential

SHERATON RALEIGH HOTEL

421 S. Salisbury St.

N/A

Hotel

RECENTLY COMPLETED

UNDER CONSTRUCTION

PLANNED

Recently Completed 2012:

$159,750,000

Under Construction:

$380,200,000

Planned:

$504,000,000

Total:

$1,043,950,000

DEVELOPMENT + INVESTMENT

DEVELOPMENT PROJECTS IN DOWNTOWN

DOWNTOWN DEVELOPMENT Under Construction

STATE EMPLOYEES CREDIT UNION 12-story office tower 40,000 SF office space

[ 3D rendering by Elizabeth Nooe ]

Planned

Renovations

WAKE COUNTY JUSTICE 485,000 SF civic space

227 FAYETTEVILLE Renovations 110,00 SF office space

SKYHOUSE 23-story residential tower 320 apartment units 5,400 SF retail space

EDISON APARTMENTS 239 apartment units 18,000 SF retail space

RED HAT TOWER Renovations

CHARTER SQUARE 300,000 SF office space 30,000 SF retail space

SHERATON Renovations

DEVELOPMENT + INVESTMENT

CENTER FOR INNOVATION

The concentration of talent and creativity in the region—a highly skilled, well educated labor force, combined with downtown amenities like outdoor dining and walkability—are key elements in downtown’s emergence as a technology hub and a center for innovation.

OFFICE + EMPLOYMENT DOWNTOWN’S RENAISSANCE CONTINUES AS MOMENTUM FROM THE PLANNED ADDITION OF CITRIX ATTRACTS HIGH TECH FIRMS TO THE CBD.

N E,

4 3.69

3.50

Square Feet (millions)

3.33

3.16

2005

2006

2007

2008

Inventory + Occupancy in the CBD *Collliers International, 4Q 2012 National Market Snapshot.

LO TT

INVENTORY | HIGH OCCUPANCY—NEARLY 90%—IN THE CBD

[SOURCE: Avison Young, 4Q 2012; Grubb & Ellis, 2005-2011 ]

- Steven S. Nicholson, Sr. Director, Facilities and Real Estate Citrix Online

Rendering of future Citrix headquarters

2009

2010 Inventory

2011

2012

OFFICE + EMPLOYMENT

“Citrix chose the Warehouse District of Raleigh’s downtown because it speaks directly to our company’s values and based on our tagline Work Better. Live Better. We believe that our employees will perform better because they are located in an area that offers so much in terms of quality of life amenities. For instance, there are over 50 restaurants within walking distance of our location. That’s just one of the things that makes downtown such a compelling location for Citrix.”

Overall vacancy rates, at 10.7%, are the lowest in the Triangle. In a national comparison of Class A vacancy rates among 62 CBDs, downtown Raleigh ranked the lowest—6.08%—significantly lower than the national average of 13.25%.* With an inventory of only 2.27 million square feet of Class A space and extremely low vacancy rates, the availability of contiguous office space for companies with larger footprints is scarce.

The 110-block CBD contains more than five million square feet of commercial office space and an additional 5.68 million square feet of government office space housing federal, state, county, and city workers.

The office market has not skipped a beat in spite of the recent purchases of anchors Progress Energy by Duke Energy and RBC Bank by PNC.

Citrix Systems, a provider of virtual computing solutions that recently acquired local startup ShareFile, announced that it will locate its datasharing division headquarters in the CBD. The company is working quickly to complete the $25 million construction of its 130,000 square foot office complex located in the Warehouse District. The office complex will house 340 employees with the capacity to expand to 830 workers.

Occupancy

16.0 9.8%

Square Feet (millions)

14.0

20.1%

12.0

18.0%

10.0 8.0 6.0 4.0

12.0%

14.0%

Austin, TX

Richmond, VA

16.6% 19.9% 10.7%

2.0 Raleigh, NC

Oklahoma City, OK

Orlando, FL

National Comparison of Occupied Space

ÂŠ www.gottschallphotography.com

Vacant

Nashville, TN

Atlanta, GA

Occupied

Charlotte, NC

% Vacancy Rate

[ SOURCES: Avison Young; CBRE; Colliers International, 4Q 2012 ]

VACANCY | CBD LOW VACANCY AMONG PEER GROUP

$22.82

$23

$20 $19 $18

[SOURCE: Avison Young, 4Q 2012; Grubb & Ellis, 2005-2011 ]

$20.88

$21

Research Triangle Park

$21.22

$22

$20.39

Rental Rate (per square foot)

Although there was a slight decrease in the Class A lease rates to $22.82 per square foot from 2012, in trend with Triangle submarkets, there are no signs of decreased demand. Class A rates have risen 20% since 2005, and they have remained stable since 2008, between $22.50 and peaking at $23.50 in 2011.

CBD | LEASE RATES ON TREND WITH SUBURBAN MARKETS*

Cary

Regional Comparison of Class A Rates

Raleigh - Other Suburban

2009

2010

Downtown Raleigh 2011

2012

TRENDS | CLASS A RATES STEADY INCREASE / CLASS B PRICED FOR STARTUPS

[SOURCE: Avison Young, 4Q 2012; Grubb & Ellis, 2005-2011 ]

$10

$15.13

$15

$18.86

$20

$5 $0

2005

2006

2007

2008

2009

2011

2012 Class B

ADVANTAGE | RALEIGHâ&#x20AC;&#x2122;S CBD COMPETITIVELY PRICED ATLANTA, GA OKLAHOMA CITY, OK

$19.58 $20.17 $21.18

RALEIGH, NC

$22.82

RICHMOND, VA

$22.98

ORLANDO, FL

$23.06

AUSTIN, TX

$24.69 $38.87

OFFICE + EMPLOYMENT

NASHVILLE, TN

CHARLOTTE, NC [ SOURCE: Avison Young; CBRE; Colliers International, 4Q 2012 ]

2010 Class A

Historical Comparison of Class A and Class B Rates

While the CBD has consistently sustained a higher rate per square foot than the suburban Raleigh markets, it is extremely competitive with its peer cities. The greatest challenge facing the CBD submarket is the lack of contiguous space available for larger tenants. Speculative developers may take this as an opportunity to invest in the market.

$18.74

$22.82

$25 Rental Rate (per square foot)

Startups and entrepreneurs find the more than three million square feet of affordable Class B and C spaces good matches for their growing business models. Class B rates peaked in 2009 at $21.05 and remained stable during the last two years between $18.50 and $18.75.

National Comparison of Class A Rates Data are derived from multi-tenant office buildings of 10,000 square feet or greater. Total commercial office space in downtown Raleigh is over five million square feet. CBRE (Austin, TX, Charlotte, NC, Oklahoma City, OK, Orlando, FL, and Richmond, VA). Colliers International data are derived from multi-tenant office buildings of 20,000 square feet or greater (Nashville, TN and Atlanta, GA). *Raleigh Suburban Markets: Brier Creek, Cameron Village, Capital Blvd., Glenwood/Creedmoor, Six Forks Rd, Wake Forest/Falls of Neuse Rd, and West Raleigh.

Alfred Williams & Company returned downtown to occupy their new $5.2 million corporate headquarters in 2012. The modernist design incorporated materials such as glass, metal, and wood.

“I co-founded the HUB to create the conditions to increase startups' chances for success. So many of them 'die on the vine' because they lacked basic infrastructure and support in their early years. The HUB provides essential moral support within the community, and also helps them with basic needs like short-term office space leases, fast bandwidth and free access to legal and accounting advice. We located the HUB in downtown Raleigh due to its density and natural appeal being within walking or biking distance to dozens of restaurants, culture, NC State, and services. We now have 37 companies working at the HUB, and it has helped several of them pick up new customers, investors and exposure.” - Brooks Bell, Co-Founder, HUB and CEO, Brooks Bell

The next generation of startups find creative co-working spaces ideal; they are places where entrepreneurs, investors, and change makers can foster one another. HUB Raleigh clearly illustrates the demand for collaborative space. This 3,000 square foot collaborative co-working space quickly attracted 30+ startups within four weeks of opening.

(RALEIGH-CARY) - FORBES, JANUARY 2013

OFFICE + EMPLOYMENT

TOP AMONG AMERICA’S NEW TECH HOT SPOTS

EMPLOYMENT Collaborative and creative professionals are transforming the character of downtown Raleigh businesses from the traditional public sector, banking, and legal services firms found in a capital city to include cutting edge high tech and startup companies. The 38,000 employees who work in downtown are a critical part of the primary job engine for North Carolina, and the center city is poised for growth. Employers recognize that the best talent demands the amenities downtown offers. Citrix brings 339 new permanent full time positions with an average wage of $70,914 over the next five years. Red Hat’s 1,000 employees and contractors, with a median age of 28 and salary of $80,000, fill downtown restaurants, retailers, and bars with young,

No.

LARGEST SHARE OF COLLEGE GRADS IN THE CENTER CITY (RALEIGHDURHAM - CHAPEL HILL) ATLANTIC CITIES,

smart, and savvy people. Innovative, high tech, and entrepreneurial are key characteristics of the types of companies that choose to locate in the CBD. Public investment in infrastructure, namely the addition of the multimodal Union Station, will continue to attract top firms. It will make downtown the anchor for high speed connectivity for the entire eastern seaboard, giving the CBD yet another competitive advantage.

The number of workers in the professional, scientific, and technological services increased 18% between 2002 and 2010.*

MOST INNOVATIVE COMPANIES: RED HAT

NAMED BY FORBES AS #4 MOST INNOVATIVE COMPANIES, SEPTEMBER 2012

JANUARY 2013

EDUCATED | DOWNTOWN IS A BRAIN MAGNET CBD†

46%

Raleigh Cary MSA North Carolina United States

42% 27%

DOWNTOWN IS A POWER CENTER OF INNOVATION + TECHNOLOGY

26%

Educational Attainment of Ages 25+ with College Degree or Higher [ SOURCE: American Community Survey, 2007-2011 ]

HIGH TECH | TECHNOLOGY SECTOR GROWING COMPANY**

SQUARE FEET

EMPLOYEES

ALPHA MARKETING

6,000

LOCAL SENSE

9,000

MAGNUS HEALTH

6,800

RALLY SOFTWARE

9,000

USERVOICE

1,500

"Innovate Raleigh started with a vision. We want to be one of the top five centers for innovation and entrepreneurship in the country. The heart of every city is its downtown and we have seen that vision embraced by everyone from Red Hat to the startups that we are helping to home grow." Mary-Ann Baldwin, Councilmember, City of Raleigh

•OnTheMap 2013. // **This is not a complete list, but a representative sample of the business types and locations that have been retained or recruited to downtown Raleigh during 2012. // †Census Tracts 501, 503, 504, 509, 510.

TALENT

115,000 students living in specialized

There are more than the Triangle, offering businesses a wealth of that is unique to this region.

talent

“Downtown has embraced Campbell Law School. Our students are populating downtown, from living here to dining to serving as externs. They love downtown! Our externship program has exploded, increasing 400% since our move three years ago, and those externships are largely located downtown— in state and federal courts, the general assembly, government agencies, non-profits, corporations, and pro-bono work in law firms. We bring the brightest and best.” -Melissa Essary, Dean Emeritus, Campbell School of Law With over 40,000 students attending the five universities located within two miles of downtown, and more than 115,000 in the Triangle, the region is a mecca for talent. Of these students, 38% graduate with degrees in science, technology, engineering, and mathematics (STEM). This concentration of graduates is at-the-ready for the type of

skilled labor needed in the current employment market. Over 46% of residents who live within one mile of the Capitol have at least a college degree. This is 18% higher than the national rate. Talented people fuel the growth of the region, and they are concentrated in Raleigh.

TOTAL ENROLLMENT

NORTH CAROLINA STATE UNIVERSITY

34,767

SHAW UNIVERSITY

2,405

SAINT AUGUSTINE’S COLLEGE

1,506

WILLIAM PEACE UNIVERSITY

868

CAMPBELL UNIVERSITY SCHOOL OF LAW

500

[ SOURCE: Integrated Postsecondary Education Data System (IPEDS), 2012 ]

TOTAL

STEM | CONCENTRATION OF SKILLED TALENT*

STEM 38%

Other Degrees 62%

OFFICE + EMPLOYMENT

HIGHER EDUCATION INSTITUTIONS (within two miles of downtown)

40,046

*Graduates with degrees in science, technology, engineering, and mathematics at universities within two miles of downtown , IPEDS 2012.

SHOP DOWNTOWN

Retail is taking root in all parts of downtownâ&#x20AC;&#x201D;38 new street level businesses opened in 2012. Feelgoodz Treehouse, an eco-conscious and socially responsible footwear company, was one of several shops that opened near the intersection of East Hargett and South Wilmington Streets.

ÂŠ www.gottschallphotography.com

SHOPPING RETAIL GAINED SIGNIFICANT MOMENTUM in downtown Raleigh in 2012. Thirty-eight new street level businesses opened, over half of which were consumer or service retail establishments. This is a net gain of 21—a 28% increase from 2011.

New service retailers such as Downtown Dental, great gift shops like Deco Raleigh, and stylish men’s clothing boutiques like Lumina, offer

Downtown is emerging as a

a complete retail menu for the downtown shopper and an experience like none other in the region. Diverse storefront businesses bring direct economic impact by increasing tax revenues and creating employment opportunities. Indirectly, they influence businesses and residents in their decisions to locate downtown—both Citrix and Red Hat noted that street level activity played a significant role in their selection process.

retail destination and

offers everything from everyday items to original art. RESOURCE | DOWNTOWN RALEIGH LOAN POOL PROGRAM

No.

MARKET FOR RETAIL JOB GROWTH (RALEIGH) AMERICAN CITY BUSINESS JOURNAL, SEPTEMBER 2012

DRA works closely with the City of Raleigh to support downtown’s emerging role as a shopping destination. In 2012, the Downtown Loan Pool Program awarded and approved $200,000 for gap financing to up-fit street level spaces, purchase equipment, acquire real estate, and use for capital expenses. The Façade Grant Program awarded and approved $60,000 in grant rebates to refurbish and restore existing downtown building exteriors. NAME

PROJECT

LOAN

CLAREMONT REAL ESTATE LLC/ HIBERNIAN HOSPITALITY

Rehab of existing space for new retailer

$50,000

RALEIGH TIMES BAR

Expansion project

$50,000

TRIG MODERN (2013)

Up-fitting new storefront

$50,000

ZPIZZA

Expansion and new services

$50,000

WHAT’S NEW | DOWNTOWN RALEIGH ATTRACTS UNIQUE BOUTIQUES DISTRICT

TYPE

CRYSTAL NICHOLE BOUTIQUE

Glenwood South

Women’s Clothing and Accessories

ESTATE BOUTIQUE

Warehouse

Men’s Sneakers and Streetwear

LISA STEWART DESIGNS

Moore Square

Clothing and Accessories

MOON & LOLA

Fayetteville Street

Jewelry and Accessories

TRIG MODERN

Capital

Home Furnishings, Accessories, and Design

SHOPPING

BUSINESS*

[ SOURCE: DRA ] *This is not a complete list, but a representative sample of the business types that have moved to downtown Raleigh during 2012.

WHAT’S NEW | TYPES OF NEW BUSINESSES IN 2012 IN THE CBD

Local entrepreneurs independently own more than 95% of CBD retail businesses. Sixty-one percent of downtown stakeholders want more retail in downtown.** Many retailers recognize this trend and for them, locating in the CBD is an investment in their business and the community.

Arts + Gifts

Health + Services

Clothes + Accessories + Furnishings

Restaurants, Bars + Hospitality

[ SOURCE: DRA ]

Retail in downtown Raleigh is the next frontier. *

BEST RALEIGH (Beautifying Emerging Spaces Together)

“Downtown is a great investment for Lumina. There is a mass of people who want to do more than eat and drink while in downtown. We’ve caught a lot of publicity just from being a part of the downtown community.” - Paul Connor, Co-Owner, Lumina

*The Raleigh Connoisseur, October 30, 2012. **DRA Stakeholder Survey, December 2011.

BEST engages property owners to support the arts community by enhancing the appearance of under-utilized storefronts. The Dillon Supply Company Building will add to the four already completed storefronts during 2013.

PEDESTRIAN SNAPSHOT Nearly 34,000 pedestrians walked through the FAYETTEVILLE STREET DISTRICT during a two and one half hour lunch period. Lunchtime traffic in the district accounts for approximately 40% of total pedestrian activity on a given day. Total volume of pedestrians in Fayetteville District during lunch period: 33,939 Peak time (12:45 pm – 1 pm):

pedestrians

between Hargett St. and Martin St. Nightlife in GLENWOOD SOUTH, one of downtown’s thriving entertainment districts, is alive with pedestrian activity, particularly between 11:30 pm and 1:30 am. Total volume of pedestrians in Glenwood South traffic between 8 pm and 2 am: 17,000+

PEDESTRIAN ACTIVITY

EDENTON

HILLSBOROUGH

2,069

Peak block: Fayetteville St.

NEW BERN

DOWNTOWN STAKEHOLDERS CITE WALKABILITY AS ONE OF THE CENTER CITY’S GREATEST ASSETS. Examination

MORGAN

MCDOWELL

PERSON

MINERVA

BLOUNT

HARGETT

MARTIN

of pedestrian traffic in key downtown areas confirmed that downtown Raleigh is bustling with a large pedestrian population—much needed data for retail recruitment. In fact, Raleigh’s pedestrian traffic exceeds the CBDs of San Diego, CA, Knoxville, TN, and Greensboro, NC.

0 - 100 101 - 200 BLAKE

WOLFE

WILMINGTON

201 - 500 FAYETTEVILLE

SALISBURY

DAVIE

501 - 800

CABARRUS

REGAN

CABARRUS

SOUTH

SHOPPING

LENOIR

901 - 1300

SNAPSHOT OF PEDESTRIAN ACTIVITY | FAYETTEVILLE STREET

Alta Planning + Design, City of Raleigh, Downtown Raleigh Alliance, 2011.

STREET LEVEL INVENTORY Street level space in downtown Raleigh is constantly in flux. As the CBD develops its identity as a place for the young and talented, a prime location for high tech headquarters, and a home to many, new businesses open every day competing to meet the needs of this dynamic market. Some concepts are more successful than others, and in an entrepreneurial town like downtown Raleigh, the street level landscape is ever-evolving. Thus, examining aggregate numbers from year to year does not capture the entire extent of the change. Instead, evaluating the inventory as a snapshot in time captures the trending market.

reinvent several city blocks worth of land currently used only for surface parking. This holds true in other CBD districts, where the land is underutilized but could be reappropriated from parking lots to multi-level mixed-use buildings. • The more than 950 apartment units planned and under construction in Glenwood South present the opportunity to locate more service retail in this already densely residential district. • The future site of Union Station promises to be a transportation hub and will have a captive audience in need of convenience retail.

• Dining continues to be the largest portion of downtown Raleigh’s ground floor inventory. • There is very little street level activity in the Capital District, which is populated by government buildings that were not designed to accommodate street level retail; however, the potential exists to

• Opportunities exist for more retail on the east/west corridors that connect the Fayetteville Street and Moore Square Districts to the Glenwood South and Warehouse Districts—primarily between Salisbury and Harrington Streets.

27 street level storefronts that were vacant in 2011 are now activated. INVENTORY SNAPSHOT | STREET LEVEL BUSINESSES IN BUSINESS IMPROVEMENT DISTRICT

Hotels Convenience Retail 12%

Banks Gyms Vacant Space 12%

Non-Retail 40%

Salons Service

Service Retail 14% Dining + Entertainment 22%

Entertainment Dining Retail Under Construction Vacant Space 0

100

*Non-Retail includes offices, residents, civic and government institutions, schools, museums, churches. Service Retail includes salons, hotels, auto-repair shops, convenience stores, health services, gyms, and banks. Parking structures and surface lots are not included. There are 17 parking structures in downtown that occupy street level storefront space. For businesses that have a storefront that occupies multiple buildings, parcels, or addresses, the establishment is only counted once.

120

Halifax St.

Blount St.

DINING + RETAIL STREET LEVEL ACTIVITY

Peace St. Johnson St.

Salisbury St.

Wilmington St.

Tucker St.

North St.

Polk St

North St Lane St.

Lane St Jones St.

Jones St. Willard St. Edenton St.

Hillsborough St. New Bern Ave. Bloodworth St.

Hargett

Harrington St.

Morgan St.

Hargett St.

Commerce St.

West St.

Glenwood Ave.

Boylan Ave.

Morgan St.

Wilmington St.

South St.

McDowell St.

Fayetteville St.

Salisbury St.

Lenoir St.

SHOPPING

Retail

Dawson St.

Dining + Entertainment

Davie St.

Cabarrus St.

Hotels

Service Retail

Person St.

Blount St.

Martin St.

[ Map Created by Elizabeth Nooe ]

Data collected from Business Improvement District footprint. Downtown’s street level business market is fluid—this represents a snapshot from information gathered during a two week period in December of 2012.

ZINDA

Zinda, an Eschelon Hospitality establishment, is among 16 restaurants, bars, and clubs that opened in 2012. An estimated $2.1 million was invested in the 8,200 square foot restaurant space that anchors the ground level of the PNC Plaza.

ÂŠ www.gottschallphotography.com

DINING + NIGHTLIFE THE CENTER CITY’S MORE THAN 160 RESTAURANTS, BARS, AND ENTERTAINMENT VENUES ARE KEY INGREDIENTS OF DOWNTOWN’S RENAISSANCE. FINE DINING, FARM TO FORK, EASTERN NORTH CAROLINA BARBEQUE, AND GLOBAL FARE COMPRISE JUST SOME OF THE UNLIMITED DINING OPTIONS AVAILABLE IN THE CBD. Talented chefs and food entrepreneurs bolster the downtown restaurant scene. They offer new and exciting concepts, attract curious eaters from around the region, and receive numerous local and national accolades. Downtown’s walkability, combined with its critical mass of restaurants, bars, and music venues, cultivate a culture where visitors have the option to decide on their dining destination upon arrival.

• 28 establishments feature outdoor dining • 16 restaurants and bars opened in 2012 • 7 out of 10 people cite dining as their primary reason for coming downtown**

“By creating establishments downtown that are exciting and different from other areas of the city, we are seeing more people spend their time here. Our goal is always to bring new trending concepts to our downtown. The culinary scene is thriving in Raleigh, and it’s going to get bigger and better in the next few years to come. With many large corporate companies moving into downtown Raleigh, we want to make sure they have a vibrant scene to enjoy.” -G Patel, Owner, Eschelon Hospitality © www.gottschallphotography.com

42% of new street level business openings in 2012. Dining + entertainment venues comprised

WHAT’S NEW | A SAMPLING OF NEW DINING AND ENTERTAINMENT VENUES IN 2012 DISTRICT

TYPE

BIDA MANDA

Moore Square

Laotian Restaurant

BOLT BISTRO & BAR

Fayetteville Street

American Restaurant

CORNERSTONE TAVERN

Glenwood South

Bar featuring Craft Beer

THE DAILY PLANET CAFE

Capital

Farm to Fork Cafe

FICTION KITCHEN

Warehouse

Vegetarian Restaurant

*This is not a complete list, but a representative sample of the business types recruited to downtown Raleigh during 2012. **DRA Stakeholder Perception Survey, December 2011.

DINING + NIGHTLIFE

BUSINESS*

TAX REVENUE | CBD GENERATES 55 TIMES THE DINING TAX REVENUE THAN WAKE COUNTY* Square Miles in Wake County and the CBD

Annual Revenue Generated in Wake County (per square mile)

Annual Revenue Generated in the CBD (per square mile)

Wake County: 816 square miles CBD: 1.18 square miles

DOWNTOWNâ&#x20AC;&#x2122;S DINING AND NIGHTLIFE IS NOT ONLY A WONDERFUL QUALITY OF LIFE BENEFIT, BUT IT IS ALSO A SIGNIFICANT ECONOMIC DRIVER. AC Restaurants, a restaurant group

comprised of five downtown venues and owned by avid downtown supporter, chef superstar, and James Beard Award Nominee Ashley Christensen, provides 130 jobs. Overall, the service sector is a leading employer, and the number of accommodations and food service workers doubled from 2002 to 2010.**

In fewer than four years, restaurant revenue in the CBD increased to $146 million.

28%

DINE | CBD DINING AND NIGHTLIFE ECONOMY BOOMING*

$146

2012

$132

2011

$127

2010

$114

2009

$100

$105

$110

$115

$120

$125

$130

Annual Food and Beverage Sales (millions) * SOURCE: Wake County Revenue Department , Food and Beverage Tax Revenue. ** OnTheMap 2013.

$135

$140

$145

$ 150

OUR FAVORITE MEALS of

2012 (Poole’s Diner) - Garden & Gun, January 2013

101 BEST RESTAURANTS in America for 2012 (The Pit) - The Daily Meal, February 2012

10 BEST BEER CITIES (RaleighDurham-Cary) - ID Cocktails blog, January 2012

FOUR OF AMERICA’S 100 BEST BEER BARS © www.gottschallphotography.com

(Brewmasters Bar & Grill, Busy Bee Café, Flying Saucer Draught Emporium, Raleigh Times Bar) - Draft Magazine 2012

NIGHTLIFE + ENTERTAINMENT LIVE MUSIC VENUES, UNIQUE COCKTAIL BARS, English pubs, and trendy clubs are a

great draw for the area’s significant 25-34 year old demographic. With so many great restaurants, microbreweries, and concept bars in close proximity, downtown’s street life stays alive long after the nine to five workday. The CBD transforms into a 24-hour entertainment district. More than 60% of the venues in the CBD are open past midnight.

- Greg Lowenhagen, Director, Hopscotch Music Festival

DINING + NIGHTLIFE

“Hopscotch really came about because of Raleigh’s existing music venues and the close proximity of them. Unlike most downtowns of similar size, Raleigh is home to several great venues within a few blocks of one another—this close-knit footprint is a key part of what makes Hopscotch so enjoyable to the fans and bands who attend.”

URBAN LIVING

The influx of young professionals moving to the area want an urban living experience, and the market is responding. Every condo unit built in the last five years is sold and hundreds of rental units are under construction.

ÂŠ www.gottschallphotography.com

LIVING SLATED TO BE COMPLETED BETWEEN 2013 AND 2015, OVER 1,600 NEW APARTMENT UNITS WILL MORE THAN DOUBLE THE LIVING OPTIONS IN THE CENTRAL BUSINESS DISTRICT. THE ADDITION OF THE NEW RENTAL UNITS

will complement the recently constructed condominiums and townhomes and the single family homes in the CBD and surrounding downtown neighborhoods. The growth in the apartment market mirrors regional trends and will meet young professionals’ demand for rental housing, many of whom are new to the area.

ST. MARY’S SQUARE Northwood Ravin will complete the $22 million apartment complex in 2013. The 1.2 acre property features 134 units and includes street level retail space. 425 NORTH BOYLAN This mixed-use project, Southern Land Company’s first development in the Triangle, will include 250 apartment units and ground floor commercial space at an estimated cost of $44.5 million. The project will consist of an eight-story concrete building accompanied by a seven-story parking deck.

“Historically the downtown Raleigh market has had a limited supply of rental housing. During the past several years the residential interest has surfaced and residents now have downtown on their radar as a place to call home. In the past 12 months the downtown area has seen over 1,200 units come out of the ground and potentially will see an additional 900 units in the next 24 to 36 months.” -Brian Reece, KARNES Research

#1 AMONG FAMILYFRIENDLY CITIES IN THE U.S. (Raleigh-Cary) - Human Life Project - January 2013

RENT | 1,608 APARTMENT UNITS PLANNED AND UNDER CONSTRUCTION

SKYHOUSE APARTMENTS

DISTRICT

NUMBER OF UNITS

425 N. BOYLAN AVENUE

Glenwood South

250

EDISON APARTMENTS

Moore Square

239

THE GRAMERCY

Glenwood South

209

L BUILDING APARTMENTS

Fayetteville

100

LINK APARTMENTS

Glenwood South

203

SKYHOUSE APARTMENTS

Moore Square

320

ST. MARY’S SQUARE

Glenwood South

134

WEST APARTMENTS

Glenwood South

153

[ SOURCE: DRA ]

TOTAL

1,608

LIVING

High density development in downtown continues with the planned addition of the 23-story, mixed-use Skyhouse. It will be the tallest of its kind in the Triangle, where most multi-family projects are only four to five stories. The $60 million project will feature luxury apartments, 5,400 square feet of retail, and a roof top pool.

PROJECT

Each year more people embrace the downtown living lifestyle. There are 5,000 residents in the CBD, 15,000 within one mile of the Capitol, 96,000 within three miles of the Capitol, and 199,000 within five miles of the Capitol.*

“I love living downtown! Here’s why: There is a real sense of freedom in being able to go out the door and just walk, without depending on a car to get everywhere. The downtown lifestyle of being out and about all the time makes it easy to meet lots of people. There is always something going on downtown, and I’ve found that the people who live here are open to getting to know new people, both other residents and their neighborhood small business owners. The Downtown Living Advocates has grown to 700 members, by word of mouth alone—testimony that downtown residents like to get involved and participate in their downtown neighborhood community.” -Jim Belt, President, Downtown Living Advocates

DOWNTOWN OFFERS THE GREATEST CONCENTRATION

of condominium and townhome options in the region, boasting an inventory of approximately 1,100 units in the CBD. Seventy percent of this inventory was built during the last five years. The majority of new construction occurred between 2006 and 2009â&#x20AC;&#x201D;671 condos at 11 properties. Although the growth of new condo development has slowed, there are currently two projects containing 32 units planned and

under construction. The price per square foot increased 9% between 2011 and 2012 illustrating a healthy condo market.

High occupancy rates reflect the great demand for an urban lifestyle, and the residential market is on track for continued growth. In addition to luxury living, there are at least 1,100 affordable units in 12 buildings within a 1.5 mile radius of downtown.

$400,000

$350

$350,000

$300

$300,000

$250

$250,000

$200

Price Per Square Foot

Sale Price

CONDO SALES AND RESALES | PRICE PER SQUARE FOOT UP SINCE 2011 IN THE CBD

$200,000 $150 $150,000

2006

$100,000

2007

2008

Average Sale Price

2009

2010

2012

$100

Average Price Per Square Foot $50

$50,000

$241 average

$313,850

price per SF, 2012

average sale price, 2012

CONDO SALES AND RESALES | URBAN LIVING IS POPULAR TREND

1,313 SF

average size, 2012

CONDOS COMPLETELY SOLD OUT

205

193 158

155 121

2007

2008

2009

Count of Annual Sales and Resales of CBD Condo Units *SOURCE: STDB online ESRI forecasts 2012

120

115

2010

2011

100% of the CBD condominiums and townhomes built since 2006 are sold

2012

LIVING

2006

2011

[ SOURCE: Sean Mena, Coldwell Banker Advantage ]

NATURE RESEARCH CENTER

The Nature Research Center (NRC), Raleigh’s 80,000 square foot wing of the North Carolina Museum of Natural Sciences, features state of the art multimedia exhibits and cutting edge research facilities. Visitors flock to the three-story SECU Daily Planet to view its 40x40 foot, high-definition screen. The NRC opened with a state-wide 24-hour celebration in April 2012 and has since welcomed 1.2 million visitors to the NC Museum of Natural Sciences—more than half a million more visitors than 2011.

TOURISM “DOWNTOWN RALEIGH IS A PERFECT DESTINATION FOR VISITORS—NO MATTER THEIR INTERESTS. WITH WORLD-CLASS MUSEUMS, AWARD-WINNING DINING OPTIONS, HISTORICAL SITES, CULTURAL AND MUSICAL OFFERINGS TAKING PLACE ON ANY GIVEN NIGHT OF THE WEEK, NOT TO MENTION A CALENDAR FULL OF FESTIVALS AND EVENTS —MANY UNIQUE TO OUR AREA—IT IS NO WONDER WHY DOWNTOWN RALEIGH IS A POPULAR CHOICE FOR VISITORS LOOKING FOR A RANGE OF EXPERIENCES.” - Dennis Edwards, President and CEO, Greater Raleigh Convention and Visitors Bureau A record 3.3 million people visited center city venues and attractions in 2012—40% more than 2007. Downtown is anchored by the region’s largest public tourist destinations including Marbles Kids Museum and Wells Fargo IMAX® Theatre, the North Carolina Museum of History, NC Museum of Natural Sciences, NC Legislature,

Red Hat Amphitheater, the Duke Energy Center for the Performing Arts, and the Raleigh Convention Center. These venues showcase world class talent, feature inspiring exhibits, and bring new and repeat visitors alike. Visitors spent $1.7 billion in Wake County, representing a 10% increase from the year prior.

The Nature Research Center was the

number one

tourist attraction in NC—outranking the Biltmore, which held the spot for over a decade. VISIT | DOWNTOWN IS A GROWING TOURIST DESTINATION

3.30

2.35

2.51

2.59

2.80

BEST MUSEUM ENVIRONMENT,

Silver Winner (Nature Research Center at the North Carolina Museum of Natural Sciences, Raleigh) - Event Design Awards, October 2012

2.98

the South in 2012 Readers’ Choice Awards (Raleigh Convention Center, Raleigh) Convention South Magazine, November 2012 2007

2008

2009

2010

2011

TOURISM

100 BEST MEETING SITES in 2012

Number of Visitors to Top Downtown Attractions (millions) SOURCE: Greater Raleigh Convention and Visitors Bureau

HOTELS

The Hampton Inn & Suites at Glenwood South, which is the first newly constructed downtown hotel since 2008, welcomed its first guests in late 2012. The boutique style inn increased the supply of hotel rooms nearly 13% to 1,126. The 78,000 square foot project, which includes 126 rooms and 960 square feet of retail space, helps meet the growing demand for hotel rooms in the CBD. Glenwood Hospitality LLC assembled four lots to create the .49 acre site and make the project a reality. Downtown’s hotel market will experience plenty of activity in 2013. Two hotels in the center city will undergo major renovations. Sound Hospitality Management bought the 20-story, 202-room Clarion Hotel in September 2012 for $9.35 million. Plans are underway to overhaul the hotel with a new façade and a number of interior improvements. Oaktree Capital Management and Northview Hotel Group purchased the Sheraton Raleigh Hotel for $20.2 million in October 2012. Plans are underway to renovate the 353-room hotel and include upgrades for the 4,600 square foot restaurant space, lobby, and other common areas. The Summit Hospitality Group of Raleigh will address the increasing demand for downtown hotel rooms with the $20 million new construction of an 11-story, 150-room Residence Inn by Marriott. The company will develop the project on a half-acre of cityowned land. Its prime location is in close proximity to the Duke Energy Center for the Performing Arts, the Raleigh Convention Center, and City Plaza.

Occupancy in downtown hotels stood at

63.9%, an increase of 3.2% from 2011

FESTIVALS + EVENTS

higher

The occupancy rate is than the Wake County rate at 61.6%, the North Carolina rate of 57.4% and the national rate of 61.4% Average daily hotel rates of downtown

5.7%

rooms increased from $112.53 to $118.92 between 2011 and 2012—well above the Wake County rate of $85.34 [ SOURCE: Smith Travel Research via the Greater Raleigh Convention and Visitors Bureau ]

In addition to brick and mortar venues, downtown hosts more than 100 outdoor festivals. These events—key components in the CBD economy—bring thousands to the city center. Annual events include parades, Winterfest, SPARKcon, and most recently, the July 4th celebration, the Works.

CONVENTIONS + TRADE SHOWS

The Raleigh Convention Center (RCC), a LEED certified state of the art facility, is a gem for the region’s hospitality industry, and it is the center of downtown’s entertainment campus. It attracts national and international audiences to the city center, garnering top accolades in the industry. More than 323,193 people attended trade shows, conventions, and other events in 2012. Highlights of the year included the American Cheese Society and Major League Gaming conventions. The RCC will host the International Bluegrass Music Association Festival (IBMA) in late September 2013. It expects to bring 8,500 attendees, occupy 5,875 room nights, and generate an anticipated $9.9 million in direct economic impact. The IBMA is also booked in Raleigh for 2014 and 2015.

CONVENTION CENTER FACTS

500,000

total square feet featuring

32,600 SF meeting rooms • 32,620 SF ball room • 150,000 SF exhibit hall •

500

• kilowatt solar energy system, comprised of 2,080 panels, producing more than 725,000 kilowatt hours of electricity

[ SOURCE: Raleigh Convention Center ]

VISITORS

TOP DOWNTOWN ATTRACTIONS NC MUSEUM OF NATURAL SCIENCES

1,224,611

MARBLES KIDS MUSEUM/IMAX®

611,048

DUKE ENERGY CENTER FOR THE PERFORMING ARTS

389,641

NC MUSEUM OF HISTORY

342,371

RALEIGH CONVENTION CENTER

323,193

NC STATE CAPITOL

103,210

ARTSPACE

99,063

RED HAT AMPHITHEATER AND FESTIVAL SITE

64,707 54,765

CONTEMPORARY ART MUSEUM (CAM)

45,000

RALEIGH CITY MUSEUM

20,094

GOVERNOR’S MANSION

17,351

[ SOURCE: Greater Raleigh Convention and Visitors Bureau ]

TOTAL

TOURISM

NC LEGISLATIVE BUILDING

3,295,054

FIRST FRIDAY GALLERY WALK

For over two decades, First Friday has been the foundation event in defining downtown as the premier destination for arts and culture. Galleries, studios, museums, and alternative art venues stay open late the first Friday of every month, bringing thousands downtown. PHOTO BY: Cheryl Gottschall

ÂŠ www.gottschallphotography.com

ARTS + CULTURE CREATIVITY IS A FUNDAMENTAL ELEMENT OF DOWNTOWN RALEIGH’S CHARACTER—AND A KEY PLAYER IN ITS ECONOMY. THE NONPROFIT ARTS AND CULTURE INDUSTRY BRINGS OVER $166 MILLION IN ECONOMIC ACTIVITY TO WAKE COUNTY EACH YEAR. THE WELL-ESTABLISHED ARTS SCENE has been bolstered by city-supported activities dating back to 1977, when the City of Raleigh Arts Commission was founded. Today, the city and several arts organizations support numerous arts festivals and cultural activities that make downtown a memorable destination for thousands.

IMPACT | CREATIVE ECONOMY •$ 166.2 million in total economic activity—more than double the national median

• $87.8 million by nonprofit arts and culture organizations • $78.4 million in event related spending by their audiences

The CBD’s growth can be correlated with the growth of the arts, each benefiting the other. Downtown provides a stage and a spotlight, and the arts venues and events attract people to the center city.

• Supports 6,601 full time jobs, generates $124.8 million in household income for local residents

Festivals like SPARKcon, an open source event, and programs such as First Friday, a free gallery walk, make the arts scene enjoyable for everyone. These familyfriendly events introduce new patrons to the arts. They offer a variety of ways for artists to participate and connect to the community. Several cooperative working studios also foster an accessible and inviting environment for those new to the scene.

• Delivers $15.9 million in state and local government revenue

[SOURCE: Americans for the Arts, Arts & Economic Prosperity IV in Wake County: The Economic Impact of Arts & Culture Organizations and their Audiences, 2012]

diversity of the arts

The quality, vibrancy, and elevate Raleigh’s status to a world class city that attracts the best, brightest, and talent.

most creative

VENUES | VARIETY OF CULTURAL EXPERIENCES IN EVERY DISTRICT DISTRICT

TYPE

THE POUR HOUSE

Moore Square

Live Music Venue

THE MAHLER FINE ART GALLERY

Fayetteville Street

Contemporary Gallery

LOCAL COLOR GALLERY

Glenwood South

Women’s Artist Cooperative

BURNING COAL THEATRE CO.

Capital

Edgy Theatre

DESIGNBOX

Warehouse

Collaborative Workspace, Shop, Gallery, and Workshop

*This is not a complete list, but a representative sample of the business types that are in downtown Raleigh.

ARTS + CULTURE

BUSINESS*

Downtown Raleigh is home to over 100 outdoor festivals and events each year that celebrate artistic expression and cultural diversity. The events bring thousands of people to experience downtown. The First Night celebration is the city’s favorite way to ring in the new year.

“Today, the busiest times downtown are during art events like First Friday, SPARKcon, Artsplosure and big events at the theatre. By using creativity as an anchor there are many possibilities for place making and memory creation. And because we are using an anchor that will always evolve, there will always be new reasons to come downtown that adapt to the changing population. A river is always a river, but artists can make and remake a place in infinite ways.” -Sarah Powers, Executive Director, Visual Art Exchange– established in 1980

hub for the creative

Downtown is the economy with nearly 30 studios and galleries, four theaters and six companies housed at the Duke Energy Center for the Performing Arts, the Contemporary Art Museum, 15 live music venues, and numerous alternative arts venues, outdoor festivals, and nonprofit arts organizations..

AT THIS VENUE | DUKE ENERGY CENTER FOR THE PERFORMING ARTS MEYMANDI CONCERT HALL | 81,000 SF, seating 1,750 RALEIGH MEMORIAL AUDITORIUM | 88,000 SF seating 2,251 FLETCHER OPERA THEATER | 36,000 SF, seating 600 KENNEDY THEATER | Experimental Theater seating 170 + five additional venues including an outdoor plaza, meeting room, and art gallery Home to the following companies: BROADWAY SERIES SOUTH CAROLINA BALLET HOT SUMMER NIGHTS

NORTH CAROLINA OPERA NORTH CAROLINA SYMPHONY NORTH CAROLINA THEATER

[ SOURCE: Greater Raleigh Convention and Visitors Bureau; Duke Energy Center for the Performing Arts ]

Hand-painted cows adorned Fayetteville Street and downtown for the North Carolina Cow Parade. © www.gottschallphotography.com

Actors prepare backstage for “A Christmas Carol” at the Duke Energy Center for the Performing Arts.

The North Carolina Symphony is a vital and honored component of North Carolina’s cultural life with over 175 performances annually.

ARTS + CULTURE

PINECONE

PLUG-IN READY

With 10 public charging stations and a wireless charging pilot program, the CBD is on the cutting edge of the electric vehicle movement. Raleigh is a leader in smart grid technology. PHOTO BY: Cheryl Gottschall

ÂŠ www.gottschallphotography.com

ACCESS + CONNECTIVITY DOWNTOWN RALEIGH IS THE TRANSPORTATION HUB OF THE CITY, THE TRIANGLE, AND THE REGION. EASE OF ACCESSIBILITY IS A TREMENDOUS ASSET FOR THE CBD AND PLANS FOR ADDITIONAL INFRASTRUCTURE PUT DOWNTOWN ON TRACK TO BECOME EVEN MORE CONNECTED—LOCALLY, REGIONALLY, AND NATIONALLY.

As the population in the region continues to grow exponentially, downtown will be prepared to address congestion, improve access and circulation, and foster opportunities for transit oriented development. The multimodal Union Station is a landmark project that will enhance downtown’s connectivity to the region and is expected to open in 2017. Located in downtown’s Warehouse District, the project will reinvent the old Dillon Supply Viaduct building, and it will

Easiest

be the hub for local, regional, and long distance bus and train service. The new station will be located in close proximity to the Citrix headquarters—already proving to be a great example of transportationoriented development. The first phase of the project is estimated to cost $60 million and will be funded collaboratively through city, state, and federal revenue sources.

urban area in which to get around in the U.S.

(Raleigh-Durham-Cary) -Texas A&M Transportation Institute 2012 Urban Mobility Report, December 2012

MOORE SQUARE TRANSIT STATION IS THE CENTRALLY LOCATED HUB for 44 of the region’s bus routes. More than 38,000 riders pass

through each week. The Capital Area Transit system is connected with other regional transit systems, offering destinations throughout the Triangle.

The R-LINE, downtown’s free hybrid electric circulator bus, is growing in popularity. Riders use it to easily get around downtown for business lunches, events, evening dinners, or the occasional pub crawl. The service began in 2009 and now serves over 300,000 riders annually.

R-LINE | DOWNTOWN’S FREE CIRCULATOR GROWING IN POPULARITY

245,000 riders in 2010 275,000 riders in 2011

ACCESS + CONNECTIVITY

195,000 riders in 2009

305,000 riders in 2012

SOURCE: City of Raleigh Public Works Department

PARK The central business district is positioned well for future growth with more than 35,000 parking spaces in the greater downtown and a 60% average occupancy rate in the center city’s garages during the work week. The median monthly rate in downtown Raleigh’s parking garages is 36% less than the U.S. median and keeps center city Raleigh extremely competitive with other growing office markets. The rate increased 5% from 2011 to $105.* In addition to serving the downtown worker, the nightlife economy is supported by 8,200 free parking spaces in city-managed garages after 7 pm on weeknights and non-event weekends.

DRIVE The CBD is located at the convergence of ten major citywide arterials making the center city easily accessible from every direction. In 2012 the City of Raleigh joined forces with Zipcar, a car sharing alternative to owning a car, to give commuters cost effective alternatives to driving their own vehicles.

FLY** In 2012, more than 9.2 million travelers passed through the Raleigh-Durham International Airport. The .65% increase from 2011 may seem small, but while the majority of airports across the country experienced loss of service, RDU has remained constant despite the decrease in the number of available seats. The airport, just 20 minutes from downtown, offered new nonstop service between Raleigh and San Francisco in 2012. Additional service direct to Los Angeles and Austin are in the plans for 2013. By early 2014, the $65 million renovations to Terminal 1 should be completed.

“The Union Station Project is a major step toward transforming Raleigh’s transportation network to that of a world-class, 21st century city. The partnerships that have made this project a reality are an example of governments working together to build an infrastructure that will promote economic development and the best quality of life for our citizens.” - Mayor Nancy McFarlane, City of Raleigh

Boston New York

Washington D.C.

Raleigh

Atlanta

BIKE Downtown Raleigh is friendly and inviting to bike commuters. The city recently installed more than 100 bike racks, plus many more by the private sector. Always innovative, downtown will be the first site in the Triangle for a bike corral. This space on East Hargett Street will accommodate parking for 10-12 bikes, in the same square footage allocated for a single car.

*Colliers International, Central Business District Parking Rate Survey, 2012. **Raleigh Durham International Airport Authority.

WALK Of Raleigh’s extensive 69 miles of greenway, 24 miles are within a three mile ring of downtown. In addition, Fayetteville Street’s 14-foot sidewalks combined with the CBD’s walkability attracts companies—most offices are within walking distance of the 160+ restaurants and bars.

ACCESS + CONNECTIVITY

The forthcoming high speed rail will connect Raleigh to the breadth of the eastern seaboard. Raleigh— located just four hours from our nation’s capital—will be the gateway city to the south.

connected

Users virtually, logging an average of 106,000 sessions per month on downtown’s free Wi-Fi, an increase of 283%.

ON TRACK

CHARGE Downtown Raleigh is a leader in electric vehicle (EV) infrastructure, featuring the region’s first solar powered EV charging station. In 2012, drivers offset 8.86 tons of CO2—saving the equivalent of 992 gallons of gas and the electricity needed to power 1.3 homes for a single year—from the CBD’s 10 public charging stations. In addition to the environmental benefits, the city has strategic partnerships with technology firms and universities to use the program to foster economic development and job creation. The city will further its reputation as a smart grid center by joining a nationwide initiative that aims to advance the adoption of electric vehicles by using wireless technology. The city will begin powering its EV fleet with this breakthrough technology during 2013. It is the first municipality in the country to join the private sector in this program.*

*City of Raleigh, Office of Sustainability.

DESTINATION DOWNTOWN 70

440

PERSON ST

CAPITAL BLVD

440

GLENWOOD AVE

RDU AIRPORT

401

WILLIAM PEACE UNIVERSITY

PEACE ST

BOUNDARY ST

PELL ST

EUCLID ST

JOHNSON ST

POLK ST TUCKER ST

CAPITAL DISTRICT

GLENWOOD SOUTH DISTRICT

OAKWOOD AVE

LANE ST

BLOUNT ST

MCDOWELL ST

JONES ST

SALISBURY ST

NORTH ST

DAWSON ST

NORTH ST

JONES ST

CAMPBELL SCHOOL OF LAW

EDENTON ST 440

HILLSBOROUGH ST

440

NEW BERN AVE STATE CAPITOL BUILDING

FUTURE SITE OF UNION STATION

PERSON ST

HARRINGTON ST

FAYETTEVILLE ST

WEST ST

HARGETT ST

MORGAN ST

NASH SQUARE

MOORE SQUARE BUS TERMINAL

FAYETTEVILLE STREET DISTRICT

HARGETT ST MOORE SQUARE

RALEIGH CONVENTION ON N CENTER

R-LINE

WES

BLVD

URY

ISB

TERN

SAL

Railroad Tracks

DUKE ENERGY CENTER FOR PERFORMING ARTS

WILMINGTON ST

Charging Station

SOUTH ST

SAUNDERS ST

Parking Deck

LENOIR ST

SHAW UNIVERSITY

ACCESS + CONNECTIVITY

WEST ST

CABARRUS ST

MOORE SQUARE DISTRICT

CHAVIS WAY

DAVIE ST

EAST ST

BLOODWORTH ST

MARTIN ST

WAREHOUSE DISTRICT

MARTIN LUTHER KING JR BLVD

440

CITY PLAZA

Opening Fayetteville Street, once a pedestrian mall, and creating City Plaza, Raleighâ&#x20AC;&#x2122;s premier space for outdoor events, have been catalytic in transforming the central business district to a vibrant and thriving center. It hosts more than 15 major events annually.

ÂŠ www.gottschallphotography.com

STAKEHOLDERS MORE THAN 3,100 STAKEHOLDERS FROM THE TRIANGLE COMMUNITY RESPONDED TO DRA’S PERCEPTION SURVEY. THE SURVEY ASSESSED AND ESTABLISHED BASELINE DATA ABOUT DRA PROGRAMS AND GENERAL PERCEPTIONS OF DOWNTOWN FROM STAKEHOLDERS TO GUIDE DRA’S MISSION TO CONTINUE DOWNTOWN REVITALIZATION. SURVEY | DOWNTOWN STAKEHOLDERS LIVE ALL OVER THE TRIANGLE REGION

9 out of 10 describe downtown as a good place to take out of town guests

Durham Chapel Hill

“Small town charm but big city culture” - Survey Respondent

Raleigh

Downtown is best described as:

Top

15-51

52-108

109-184

185-303

3 reasons people come downtown:

1. Safe during the day

1. Dining

2. Good selection of dining options

2. Visiting museums and cultural institutions

3. Clean and well maintained public spaces

3. Attending concerts, theater, and other performances

TRANSPORTATION

COMMUNITY

SAFE + CLEAN

• 1 out of 3 residents who live in the CBD relocated to downtown since 2010

• More than half of downtown residents walk to work

• Stakeholders are from at least 128 zip codes throughout the Triangle

• 4 out of 5 feel safe in CBD parking garages

• 60% of respondents earn an income greater than $75,000

• 1 out of every 2 respondents described downtown as a pleasant walkable urban environment

• 80% have a college degree or higher

• 70% want more live music and outdoor concerts • 80% attended at least one outdoor event during the past year

SOURCE: DRA Stakeholder Survey, December 2011.

• Nearly 15% take alternative modes of transportation to get to work downtown— walking, biking, car-sharing, and public transit

• Over half of downtown stakeholders live outside the City of Raleigh • 3 out of 5 work outside the CBD

• People are more likely to feel very safe in downtown if they frequently see DRA Ambassadors • 85% think downtown sidewalks are clean • 94% rate safety as a very important factor influencing the likeability of downtown

STAKEHOLDERS

LIVING + WORKING

DOWNTOWN RALEIGH ALLIANCE IMPACT 2012

The DRA is an award-winning nonprofit organization responsible for revitalizing Raleigh’s downtown by enhancing its quality of life and contributing to its economic success.

A PRISTINE DOWNTOWN •8 2,164 pounds of trash removed from downtown sidewalks • 1 ,542 instances of graffiti removed or reported for further action • 1 92 banners representing 15 conventions and cultural programs added character to the downtown streetscape © Carolyn Scott

A MEMORABLE DOWNTOWN • 108 outdoor events—16% more than 2011 • 54,000 shopped at the Raleigh Downtown Farmers Market • 17,192 ice skaters at Raleigh Winterfest • 725 attendees visited 24 homes on the Downtown Raleigh Living Tour • 87 of 142 days of programming at City Plaza produced by DRA

A COLLABORATIVE DOWNTOWN • 2,324 volunteered for Activate Raleigh, a service day in honor of 9/11 • Strategic partnerships: • To support the growth of entrepreneurial activity through work with Innovate Raleigh + HUB •C o-branding: the R-LINE, Downtown Raleigh Free Public Wi-Fi, ‘Clean is Green’ Big Belly solar trash compactor and recycling units • $250,000 raised for development of 10-year strategic downtown vision plan

A TRANSPARENT DOWNTOWN • Combined $2.4 million budget for DRA and Raleigh Civic Ventures 2012-2013 COMBINED BUDGETED REVENUES

2012-2013 COMBINED BUDGETED EXPENDITURES 9% 2%

4% 9%

23%

36%

48% 16% 25%

28%

Property Assessment

Corporate Sponsorships

Safety, Hospitality & Clean

Merchant Programs

Fee for Service

Member Dues

Advocacy & Operations

Strategic Partnerships

Special Events Production

Strategic Branding

A VIBRANT DOWNTOWN • Nearly half of new businesses that opened in 2012 were assisted by DRA • 149 merchants participated in DRA produced promotions: Downtown Raleigh Restaurant Week, Shop Downtown, and First Friday

A CONNECTED DOWNTOWN •More than 400 dues-paying members—93% retention rate from 2011 • 70.6 million web hits to www.YouRHere.com • 10,000+ subscribers to monthly electronic newsletter • Over 700 downtown advocates attended the 2013 Annual Meeting and Awards Ceremony

AN INVITING AND SAFE DOWNTOWN • 1,229 safety escorts, four times the number of escorts in 2009 • 2,719 panhandling issues were discouraged and reported in 2012—500 less than 2011 • 3,222 miles patrolled on bicycle—longer than the distance between Raleigh and Seattle • Nearly 5,000 motorist assists • 18,377 directions given

STAKEHOLDERS

OFFICERS + EXECUTIVE COMMITTEE

BOARD OF DIRECTORS

Jill Wells Heath Chair Mulkey Engineers & Consultants

David P. Adams Capital Bank

Andy Holland Wells Fargo Bank

J. Russell Allen (Ex-Officio) City of Raleigh

Chad T. Lefteris Rex Healthcare

Mary-Ann Baldwin (Ex-Officio) City of Raleigh

Sarah Powers Visual Art Exchange

Jim Belt Downtown Resident / DLA

Rebecca Quinn-Wolf PNC

Ashley Christensen AC Restaurants

Deborah K. Ross (Ex-Officio) NC General Assembly

David Cooke (Ex-Officio) Wake County

Harvey Schmitt (Ex-Officio) Greater Raleigh Chamber of Commerce

Sally Edwards Marbles Kids Museum

Jason Smith 18 Seaboard Restaurant

B. Keith Faulkner Campbell University School of Law

Josh Stein (Ex-Officio) NC General Assembly

Richard French French/West/Vaughan

Andrew Stewart Empire Properties

Niall Hanley Hibernia Entertainment, LLC

Debra M. Townsley William Peace University

Venessa Harrison AT&T North Carolina

Caroline F. Welch ABC 11-WTVD

Kathy Higgins Blue Cross and Blue Shield of NC

Dorothy C. Yancy Shaw University

Frank Bloom Special Events Manager

David A. Diaz President + CEO

Marshall Munns Budget Manager

Ellen Chilton Merchant Program Manager

Kimberley Jones Assistant to the President

Paul Reimel Economic Development Manager

Carla Chirico Marketing + Communications Manager

Lacie Lindstaedt Director of Communications + Membership

Robert Rutten Director of Ambassador Services

Thomas S. Hill Vice Chair/Treasurer Highwoods Properties Clymer Cease, Jr. Immediate Past Chair Clark Nexsen Joseph “Bo” Dempster, Jr. Secretary Poyner Spruill Rodney Gaddy At-Large Duke Energy Sharon Moe At-Large North State Bank Jon Wilson At-Large Kimley-Horn and Associates, Inc. David A. Diaz (Ex-Officio) President and CEO Downtown Raleigh Alliance

ACKNOWLEDGEMENTS:

DOWNTOWN RALEIGH ALLIANCE STAFF

Roxanne Coffey Office Manager

Hallie Mittleman Director of Sustainability + Planning

Stacey Simeone Graphic Designer

The research, analysis, and writing for the State of Downtown was directed by Hallie Mittleman with assistance from DRA staff. Stacey Simeone designed the report and created the informational graphics.

Alfred Williams Alta Planning + Design Americans for the Arts Artsplosure Avison Young Capital Area Transit Authority CBRE Citrix Systems City of Raleigh: Planning & Development; Urban Design Center; Parks and Recreation; Public Works; Office of Sustainability Colliers International Connie Oh Derrick Minor Downtown Living Advocates Downtown Raleigh Alliance Stakeholder Survey, December 2011 Ground floor inventory 2011, 2012 Elizabeth Nooe Greater Raleigh Chamber of Commerce Greater Raleigh Convention and Visitors Bureau Grubb & Ellis Hopscotch Music Festival HUB Raleigh Integrated Postsecondary Education Data System JDavis Architects Karnes Micah Kordsmeier News & Observer North Carolina Symphony O’Brien/Atkins Associates Raleigh Convention Center Raleigh Historic District Commission Raleigh-Durham Airport Authority Smith Travel Research Triangle Business Journal U.S. Bureau of Labor Statistics, LED OnTheMap U.S. Census Bureau Visual Art Exchange Wake County: GIS, Revenue Department For errata visit: www.YouRHere.com

DRA MISSION The Downtown Raleigh Alliance is an award-winning nonprofit organization whose mission is to continue the revitalization of Raleighâ&#x20AC;&#x2122;s downtown by enhancing its quality of life and contributing to its economic success. On a day-to-day basis, DRA provides five core services designed to support its primary stakeholders (property owners, government officials, business owners):

1. Safety, Hospitality + Clean Ambassadors

4. Retail Attraction + Merchant Promotions

2. Strategic Branding + Community Communications

5. Strategic Partnerships + Stakeholder Engagement

3. Special Events Production + City Plaza Programming

COVER PHOTO BY MATT ROBINSON

PRODUCED BY:

120 S WILMINGTON STREET, SUITE 103 • RALEIGH, NC 27601 • WWW.YOURHERE.COM • 919.832.1231