2 min read October 2023 — In an interview with Invest:, Scott Levitan, president and CEO of Research Triangle Foundation of North Carolina, talked about the preparation for vertical construction at HUB, RTP’s new downtown, regional transportation developments, the role of RTP’s entrepreneurial Frontier Campus as a vibrant hub for startups and the thriving economic landscape of the state with a focus on growth and equity.
What are some significant milestones that RTP has achieved in the last year?
We have exciting developments in the works. Our HUB downtown project in RTP has moved from infrastructure preparation to actual vertical construction. The market response has been overwhelmingly positive, which is very encouraging.
We’re fully committed to this ambitious project and top-notch vertical developers like Longfellow Real Estate Partners, White Point Partners, MAA and KDC – all making excellent progress. Despite challenges in the commercial real estate market, interest in our built-to-suit office spaces remains strong, with active discussions with potential tenants. The concept of a highly amenitized downtown urban center has received a fantastic response.
Working closely with county partners, RTP companies and local businesses has been crucial to bringing this project to life. Durham County has invested in HUB and RTP companies have even voted to tax themselves to fund the infrastructure. The progress is evident and witnessing the buildings emerge from the ground is a beautiful thing.
With around $300 million worth of construction underway, we’re excited about the future prospects. It’s been an incredible journey and we’re confident this new downtown development will be a major success.
What developments have been implemented to enhance transportation in the region?
One significant step was taken by NCDOT, as they stepped up to improve Amtrak service between Durham, Cary and Raleigh. Additionally, we have commenced planning and construction for bus rapid transit (BRT) in both Orange and Wake Counties. We are hopeful that Durham County will also embrace bus rapid transit as the backbone of its transportation system. The exciting part is that all these transportation efforts converge in RTP.
We have a site in RTP that we’ve owned for quite some time, deliberately keeping it off the market for nearly 20 years, with the vision of creating an RTP transit hub. The location couldn’t be more strategic, situated at the intersection of NC 54, where the three BRT systems would meet and the North Carolina Railroad right-of-way, where enhanced Amtrak service will be implemented. Currently, we are working closely with GoTriangle on a study to assess the feasibility of establishing a multi-modal transit center at this location that will connect bus, BRT and rail service for the Triangle.
It’s truly gratifying to witness the growing emphasis on regional transportation in our region. RDU, for instance, has wholeheartedly embraced the idea of supporting regional transportation, recognizing the tremendous benefits it offers to their employees, who work around the clock.
How does the campus affect the region’s entrepreneurial ecosystem?
Over the past six years, we seized a unique opportunity with the Frontier Campus, a 500,000-square-foot complex formerly leased by IBM. We turned it into a thriving hub for startups and emerging companies.
The response was remarkable – the campus quickly reached an impressive 95% occupancy rate between 2020 and 2022, even during the challenges of the pandemic. One-third of the 375 companies in RTP now call the Frontier Campus home, providing cost-effective office spaces at the heart of the region.
What started serendipitously became a fulfilling journey, nurturing an ecosystem that fosters growth and prosperity for these companies. The Frontier Campus has become a vibrant entrepreneurial center.
The success of this venture led us to rethink our plans and we now aim to preserve the Frontier buildings, recognizing their critical importance as an entrepreneurial center at the core of the Triangle region. Boxyard, our experiential retail center built from repurposed shipping containers is celebrating its 2nd anniversary of success and has also contributed significantly to the appeal and positive impact of the Frontier Campus.
How would you describe the current economic landscape in the state?
Looking back to when RTP was founded in the late 1950s, both Mississippi and RTP ranked low in economic well-being for residents among the states. But now, the tables have turned, with Mississippi at 50th and RTP in the low 30s. The region’s desirability is evident from the influx of 100,000 new residents annually, thanks to the relatively lower cost of living, quality of life, well-trained talent pipeline and research generated from our Universities and Tech Colleges.
Recent announcements of major investments in North Carolina outside of the Triangle region, like VinFast, Toyota and other advanced manufacturing facilities, reinforce RTP’s role as an R&D hub. The positive effects of RTP’s traditional corporate R&D campuses extend beyond the core Triangle counties benefitting the entire State.
This aligns perfectly with the founders’ vision, supporting the well-being of all North Carolina residents. Collaborative efforts are paving the way for inclusive economic growth and prosperity.
What are the primary concerns for businesses in the region?
The Triangle region is undeniably booming and is expected to welcome around a million new residents by 2045. Accommodating this growth means we need an additional 400,000 dwelling units and additional infrastructure, including schools, recreational amenities, transportation, utility investments and infrastructure to support the influx. Development in the Region must occur through a lens of equity – we can observe the impact on workforce capacity in competitive markets that have not paid attention to housing and resources for residents of all income ranges.
To address these challenges, the Research Triangle Foundation is conducting a comprehensive study to determine the role of Research Triangle Park (RTP) as the region expands. RTP’s location and benefits make it a prime destination for businesses and talent. However, we must rethink its future, as surface parking lots should not be the predominant land use on extremely well-situated land in the center of a rapidly growing region.
We feel a profound responsibility to reimagine RTP’s potential, considering community engagement and equity principles, encompassing housing, public transportation, recreational open space and education. With a projected 50% population increase over the next 30 years, these challenges will be exacerbated.
Our commitment is to foster regional collaboration and develop transformative strategies for RTP. Our goal is to optimize this incredible resource efficiently, positively impacting the entire region. Crafting this future is both challenging and exhilarating and we are fully engaged in the journey of transformation and growth in RTP. More details about our plans will be shared soon and we’re excited to continue this endeavor.
What is your outlook for RTP and what are your top priorities for the next couple of years?
Our top priorities are centered on fulfilling promises, with a major focus on the HUB project. We envision RTP as a contributor to growth and a creative problem-solver for challenges. With 7,000 acres in the center of the Region, RTP needs to continue to nurture the success of our existing companies and identify opportunities to partner with our counties, municipalities and other partners to help our region ‘grow smart’.
Over the past three years, many companies have made announcements, with buildings now being completed and activities commencing. Our goal is to support these ventures to succeed. Though deal flow might not be as high as last year, we have numerous commitments and ongoing projects in the pipeline in RTP thanks to the successful efforts of our economic development partners at the State and Counties.
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