Triangle Economic News

[KJHburg]

Colliers released its Raleigh Durham Triangle office market report for Q3 and it is very positive.  You can download your report from this summary and this does not include leases just signed for the insurance company up at North Hills newest tower and Capital Bank at the One Glenwood tower

https://www2.colliers.com/en/research/raleigh/2018-Q3-Raleigh-Durham-Office-Report

[KJHburg]

Wegmans the NY based grocery store chain with a cult like following is announcing their 5th store in the market in Wake Forest.  This is in addition to the stores in north Raleigh, 2 in Cary,  and the one in Chapel Hill. 

https://www.bizjournals.com/triangle/news/2018/10/26/wegmans-has-plans-for-wake-forest-store-fifth-in.html?ana=e_me_set1&s=newsletter&ed=2018-10-26&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1540558957&j=84652831

[RALNATIVE]

11 hours ago, KJHburg said:

Wegmans the NY based grocery store chain with a cult like following is announcing their 5th store in the market in Wake Forest.  This is in addition to the stores in north Raleigh, 2 in Cary,  and the one in Chapel Hill. 

https://www.bizjournals.com/triangle/news/2018/10/26/wegmans-has-plans-for-wake-forest-store-fifth-in.html?ana=e_me_set1&s=newsletter&ed=2018-10-26&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1540558957&j=84652831

Doesn't sound like they are pulling back much on development in the Triangle.

[po-boy]

IBM acquiring Red Hat for  $34 billion. 

https://www.wraltechwire.com/2018/10/28/ibm-to-acquire-red-hat-in-34-billion-deal-red-hate-to-remain-distinct-unit/

[ctl]

It's difficult to predict the trajectory of Red Hat as a division of IBM. Of course IBM is saying all the obligatory things about the deal; they don't want to spook the Red Hat employees or customer base. Based on many years of watching M&A and what I know of IBM these days, I think in terms of probabilities in five years: 35% that IBM's presence in DTR will be about the same, 15% that the presence will have increased, and 50% that it will have decreased. In situations like this, the most vulnerable people at the acquired company are G&A functionaries (HR, Finance, Legal, IT, etc).  

[KJHburg]

in other tech news today  San Fran based tech startup opening engineering office in Durham over Austin, Denver and Atlanta.  Should grow to 20 people fairly quickly.

 https://www.bizjournals.com/triangle/news/2018/10/26/bay-area-startup-taps-durham-over-atlanta-austin.html?ana=e_me_set3&s=newsletter&ed=2018-10-29&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1540829766&j=84693641

Epic Games of Cary receives over $1 Billion investment from major investors.

https://www.bizjournals.com/triangle/news/2018/10/26/epic-games-scores-1-3b-from-bigname-investors.html?ana=e_me_set2&s=newsletter&ed=2018-10-29&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1540829554&j=84693641

[KJHburg]

The Best Cities for Business and Careers from Forbes ranks these NC cities in the top 25!

#2 Raleigh  #5 Charlotte #13 Durham  #15 Asheville 

Atlanta #11 Nashville #17     They looked at 200 metro areas across USA

https://www.forbes.com/best-places-for-business/list/#tab:overall

[KJHburg]

Another positive tech community story on the Raleigh Durham area with mentions about Apple and Amazon.  The former is much more likely than the latter.  

https://news.crunchbase.com/news/the-capital-without-the-costs-how-north-carolina-is-rising-as-an-entrepreneurial-hub/

[KJHburg]

while the Triangle region awaits to hear Amazons HQ2/3 locations which I think benefits a smaller metro market like Raleigh Durham in terms of splitting the huge HQ,   the area continues   to attract tech companies.  Boston based cloud computing computer looking to add 50 people in Durham within the next year.

https://www.bizjournals.com/triangle/news/2018/11/06/boston-cloud-firm-has-ambitious-hiring-plans-for.html?ana=e_me_set1&s=newsletter&ed=2018-11-06&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1541525652&j=84857061

[KJHburg]

Here is additional information from Nasuni the Boston based cloud computing firm expanding in Durham.  The weather, great labor, lower costs all brought them to expand here. 

https://www.wraltechwire.com/2018/11/07/cloud-firm-nasuni-sees-plenty-of-jobs-coming-to-triangle-where-winters-are-kinder/?ssid=112928427

[KJHburg]

Pharmaceutical plant in Holly Springs announced a $140 Million expansion.

""Seqirus is at it again – but this time with an expansion at the operation that tops $140 million.  Seqirus is breaking ground Friday morning on one of its largest corporate investments to-date. According to Chad Salisbury, the site lead for facility in Holly Springs, the expansion was precipitated by continually increasing demand for its flu vaccines – particularly its prefilled product. ""

https://www.bizjournals.com/triangle/news/2018/11/16/seqirus-to-break-ground-on-140m-expansion-in-holly.html?ana=e_me_set1&s=newsletter&ed=2018-11-16&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1542401560&j=85064411

[Merthecat]

Raleigh is trying to lure two mystery projects to the city, and plans to discuss possible incentives in January:

https://www.bizjournals.com/triangle/news/2018/11/16/amid-amazon-loss-raleigh-goes-after-2-mystery.html

[KJHburg]

Raleigh ranked as #2nd best city to live in right now after only Austin another Amazon runner up.

https://www.newsobserver.com/news/local/article221898855.html

[KJHburg]

Both Raleigh and Durham metros were ranked by USA Today as the top 25 innovative cities.

https://www.usatoday.com/story/money/2018/11/14/top-cities-entrepreneurs-tech-25-most-innovative-places-us/38330651/?utm_source=feedblitz&utm_medium=FeedBlitzRss&utm_campaign=usatodaycommoney-topstories

[KJHburg]

Sounds like Wake County has a great future even without HQ2 that was split in 2. 

If Wake County gets even 1/3 of these projects that would be fantastic.

https://www.wraltechwire.com/2018/11/21/shaking-off-hq2-rejection-wake-county-eyes-10000-jobs-41-projects-3b-in-investment/?ssid=112928427

[po-boy]

Raleigh to finally get a Fortune 500 HQ! Advance Auto Parts to announce tomorrow. 

https://www.bizjournals.com/triangle/news/2018/11/27/raleigh-to-get-a-fortune-500-hq.html

[KJHburg]

Here is the story about Advance Auto adding 435 more jobs in Raleigh average salary $106,000.   Wonder if they will acquire more space maybe downtown where a marketing office is going.   https://www.bizjournals.com/triangle/news/2018/11/28/done-deal-advance-auto-parts-to-move-hq-to-raleigh.html

[KJHburg]

Big announcement by Pendo Software to add 590 jobs in downtown Raleigh and I know they will need a lot more space.  This is great for the region and for downtown.

https://www.bizjournals.com/triangle/news/2018/12/03/pendo-to-add-590-raleigh-jobs.html?ana=e_trig_bn_breakingnews&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1543868820&j=85328871

[RALNATIVE]

26 minutes ago, KJHburg said:

Big announcement by Pendo Software to add 590 jobs in downtown Raleigh and I know they will need a lot more space.  This is great for the region and for downtown.

https://www.bizjournals.com/triangle/news/2018/12/03/pendo-to-add-590-raleigh-jobs.html?ana=e_trig_bn_breakingnews&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1543868820&j=85328871

This is excellent news. Let's continue the tech momentum and growth of the local tech talent pool.

[KJHburg]

More on Pendo's expansion downtown from another TBJ article

""With the incentives in hand, Pendo’s leadership is now focused on finalizing a deal to buy land and build new office space that will serve as the company’s primary engineering hub. “It will be in downtown Raleigh,” Pendo CEO Todd Olson says. “We’re talking with a number of developers now.”  The average wages of the added jobs will be $86,824, well above the average Wake County wage of $56,245.""    They will need 100K of space according to their CEO

Subscriber article   https://www.bizjournals.com/triangle/news/2018/12/03/pendo-ceo-talks-plans-to-build-new-downtown-hq-for.html?ana=e_du_prem&s=article_du&ed=2018-12-03&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1543870630&j=85330781

Edited December 3, 2018 by KJHburg

[RALNATIVE]

20 minutes ago, KJHburg said:

More on Pendo's expansion downtown from another TBJ article

""With the incentives in hand, Pendo’s leadership is now focused on finalizing a deal to buy land and build new office space that will serve as the company’s primary engineering hub. “It will be in downtown Raleigh,” Pendo CEO Todd Olson says. “We’re talking with a number of developers now.”  The average wages of the added jobs will be $86,824, well above the average Wake County wage of $56,245.""    They will need 100K of space according to their CEO

Subscriber article   https://www.bizjournals.com/triangle/news/2018/12/03/pendo-ceo-talks-plans-to-build-new-downtown-hq-for.html?ana=e_du_prem&s=article_du&ed=2018-12-03&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1543870630&j=85330781

The article mentions that this will be a HQ, not just their primary engineering hub. That is even better news.

These types of developments will strengthen Raleigh in more ways than one. Having more high paying jobs is the most immediate benefit, but what many people fail to recognize is that tech jobs tend to stabilize local economies better over the long term than jobs in many other industries. I say the more tech jobs for Raleigh, the better.

 

[KJHburg]

another story about Pendo from WRAL Techwire and that other city courting them was Nashville

https://www.wraltechwire.com/2018/12/03/raleigh-based-software-firm-to-add-590-jobs-downtown/?ssid=112928427

[KJHburg]

Millennials prefer these 5 tech cities over Silicon Valley and you guessed it Raleigh made the list.  From Forbes

https://www.forbes.com/sites/marissaperetz/2017/11/15/millennials-prefer-these-5-tech-hubs-to-silicon-valley/#4bfa0bdfaac3

[Jones_]

7 minutes ago, KJHburg said:

Millennials prefer these 5 tech cities over Silicon Valley and you guessed it Raleigh made the list.  From Forbes

https://www.forbes.com/sites/marissaperetz/2017/11/15/millennials-prefer-these-5-tech-hubs-to-silicon-valley/#4bfa0bdfaac3

Because, you know, tech is tech, and is less attached to an office park, I get the feeling lots of cities have a better scenes than a casual observer might think. From my travels, Pittsburgh, Cincinnati, Louisville, and Tampa all had enough urban cache and a knowledge base to go with it to be up and comer places. I have a gut feeling that in my lifetime Raleigh will level off dramatically, and these other, cheaper places will rise (or rise again in all of these cases). The coasts are so. damned. expensive. The midwest is not. Gulf Coast is the cheaper Florida coast. Sarasota ain't bad to a techy either...lots of coffee shops, busy and cool historic main strip, arts and design university. Don't beat me up...its just a feeling. 

[DanRNC]

15 hours ago, Jones_ said:

Because, you know, tech is tech, and is less attached to an office park, I get the feeling lots of cities have a better scenes than a casual observer might think. From my travels, Pittsburgh, Cincinnati, Louisville, and Tampa all had enough urban cache and a knowledge base to go with it to be up and comer places. I have a gut feeling that in my lifetime Raleigh will level off dramatically, and these other, cheaper places will rise (or rise again in all of these cases). The coasts are so. damned. expensive. The midwest is not. Gulf Coast is the cheaper Florida coast. Sarasota ain't bad to a techy either...lots of coffee shops, busy and cool historic main strip, arts and design university. Don't beat me up...its just a feeling. 

While Raleigh-Durham has been/will always be a major innovation/tech center, Boston, the Bay area, the DC area, and even NYC, which is rapidly rising,  will continue to pull away from everyone else.  Every burg in the US is touting itself as a tech hub but the brain power will continue to be primarly centered in those areas.