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121 Fayetteville St Raleigh Tower


KJHburg

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3 hours ago, rolly said:

Are they doing this all on spec, or do they have some clients in mind. 

 

Not sure yet but with Kane involved as leasing agent I am sure they marketing it greatly.  Downtown Raleigh despite several buildings being delivered (The Dillon and One Glenwood) really does not have a lot of available blocks of office space.  The vacancy is low. 

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@KJHburg Good point. Those projects leased out quickly, showing strong market interest. 

But there is a lot of competition coming online, with the second tower next to One Glenwood (10 stories), the 9 story tower in Peace Phase 2, and half of 301H (Pendo taking only about half).  Also Kane has Tower 4 coming up, which is ahead of all projects with 11 stories of office. And to think that all of this should be done in just a year and a half. 

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2 hours ago, rolly said:

@KJHburg Good point. Those projects leased out quickly, showing strong market interest. 

But there is a lot of competition coming online, with the second tower next to One Glenwood (10 stories), the 9 story tower in Peace Phase 2, and half of 301H (Pendo taking only about half).  Also Kane has Tower 4 coming up, which is ahead of all projects with 11 stories of office. And to think that all of this should be done in just a year and a half. 

Kane is involved in 2 of the 4 projects you mentioned.  If he's willing to compete against himself, there's likely very good reason.  Optimistically he knows some things the general public doesn't.  All recent office projects have filled up very quickly and people and companies moving here hasn't slowed in the 2010s, so demand should continue as it has.

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According to this office market report from Avison Young downtown Raleigh has a  3.8% total vacancy which is incredibly low.  Even with the new Kane office building at Peace, the new 2nd tower over by One Glenwood and the new Pendo tower more office space is needed if you want to attract tenants.  Plus of course the proposed 121 Fayetteville tower None of these buildings are overly big (especially by Charlotte standards)  all these new buildings together would be around 1 Million sq ft.  However downtown Raleigh absorbed 454,xxx sq ft in the last 12 months and since their completion times are staggered (only 2 now underway the Bloc 83 tower by One Glenwood and the Kane's Peace office building)  I think the market could easily absorb this space.   Tech companies are wanting to be in urban locations and you need some space to target them not to mention growing coworking concepts like WeWork and Spaces and others in the market. 

https://www.avisonyoung.us/documents/92532/2127338/Raleigh-Durham+Office+Report+(Q2+2019)/b2383620-3899-428a-b201-638251cea4ef?t=85220044

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  • 3 weeks later...
On 8/14/2019 at 4:01 PM, 49er said:

Was that deck built to support a tower? Curious how they will demo part of it if that is the case.  A+ architecture in the rendering.  

It was built later to support the parking needs of First Union (later Wachovia and now Wells Fargo). But if you mean structurally support, none of the new building would sit on it from what I can tell...looks like they would just shave off that southern 40%. I haven't been in it since shortly after it was built but think I remember it functioning sort of like two decks conjoined at that center elevator shaft/atrium. Beyond that, I don't know if it was designed to hold more stuff on top of it, but at a glance it doesn't look like it. 

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  • 3 weeks later...
On 8/9/2019 at 5:08 PM, rolly said:

Are they doing this all on spec, or do they have some clients in mind. 

 

The residential and commercial markets in Raleigh are so hot right now, I think that doing this on spec is not risky at all. However, I suspect that there are interested prospects looking for this prime space that have not been disclosed publicly.

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