Why Downtown Raleigh for retail?
Downtown Raleigh is one of the fastest growing downtowns in the U.S. Over the past decade, downtown has seen over $2.5 billion in investment with over $800 million more in current or planned projects. With a rapidly growing base of residents, office users, and visitors, downtown Raleigh is becoming one of the densest areas in the Triangle and continuing to build strong demand for retail of all kinds from soft goods to food.
Retail Demand Rising:
Based on calculations performed by HR&A Advisors of New York City, downtown Raleigh already has $20 million in spending potential for retail, based on its existing residential, office, and visitor base. With the current explosion of development, downtown is building substantial retail and grocery demand for the future:
Join a Growing Retail Base:
Downtown has seen tremendous growth in its retail base over the past five years with more stores on the way helping build downtown into a shopping destination.
Drivers of retail demand:
Population and Income Growth:
- Downtown’s population increased more than 53% since 2000 and is poised for an increase of over 40% with the current residential projects being built.
- As of today, 2,458 residential units are either under construction, have been delivered this year, or planned for construction in the near future. When fully occupied, those units will add over 4,000 residents to downtown. Hundreds of other units are being constructed within close proximity to downtown, as well, adding even more residents with easy access to downtown shopping.
- Downtown’s population is also younger with 54% of downtown’s residents between the ages of 25-40 compared to 40% nationally.
- Downtown Raleigh’s population also will see faster income growth compared to state and national averages.
Employees + Growing Economic Hub
Downtown has over 50,000 employees working in a diverse economy that includes everything from cutting-edge tech companies to new start-ups. Employers are increasingly attracted to downtown as a place to locate their companies thanks to the amenities of downtown such as award winning restaurants, retail, nightlife, and attractions, along with proximity to other dynamic and growing firms. Additionally, given the amount of residential units opening in downtown, employers increasingly can locate their offices near where their employees live.
Recent new employers include:
- Citrix: software company bringing over 700 tech employees (and counting!) to a state-of-the-art renovated warehouse in downtown
- Red Hat: open-source software firm with over 1,000 employees in downtown
- Ipreo: leader in data and market intelligence with several hundred employees located in downtown
New office projects include:
- Charter Square: 240,000 square feet (sf) of Class A office space
- The Edison office tower: 315,000 sf of Class A office space
- HQ Raleigh: 30,000 sf expansion of highly successful incubator space
- 227 Fayetteville St.: renovation of 107,000 sf office building
- 107 Fayetteville St.: 13,000 sf renovation for growing tech companies
Tourist and Event Magnet:
Downtown Raleigh hosts millions of visitors to its museums, convention center, concerts, festivals and events.
- Over 3.4 million visitors to downtown’s top 15 museums and attractions
- Over 600,000 people attended downtown’s outdoor festivals and events
- 47% increase in visitors at the Raleigh Convention Center
- 180,000 attendees for IBMA World of Bluegrass festival resulting in $10.8 million in direct visitor spending
- Downtown hotel occupancy rate up to 71.3%, a nearly 6% increase over 2014, according to STR
- Nearly 400 hotel rooms preparing for construction with several hundred more proposed