2 min read August 2022 — Research Triangle Park (RTP) is an innovation community campus situated in the middle of the urban area comprising Raleigh, Durham, Chapel Hill and their surrounding suburbs. In an interview with Invest:, Scott Levitan, president and CEO of the Research Triangle Foundation of NC, discussed the new developments going on in the area and the outlook for RTP in the coming years.
What milestones has your organization achieved over the last 12 months?
We are at a milestone right now. We are finalizing our $70 million infrastructure project at RTP. We have signed on all the key vertical development components for that. MAA has been with us since the beginning to develop 600 apartments that broke ground in October. Longfellow Real Estate Partners is moving forward on a 250,000 square foot spec lab building as well. KDC continues to pursue larger office tenants, and there are several prospects that are focused on the post-pandemic work environment and how HUB RTP will meet those needs. RTF has entered into a partnership with White Point Partners on Horseshoe @ HUB, the retail and office town center for HUB and RTP.
Demand has increased so much that there are campuses at RTP that are worth a tremendous amount of money. We have completed some recent land transactions worth more than 2.5 times their value in December of 2019. That appreciation represents how much RTP is seen as a crucial factor in the growth of the region. We recently signed up with a hotel developer, which will build a 275-room, high-end hotel and conference facility.
In terms of what you want the modern office to look like at RTP, what has developed there?
The Horseshoe has shared amenities within the building, including a roof terrace. Retail is critical to our strategy given the feedback we have been seeing from the market and our RTP companies. Prospective tenants like the idea of having all the amenities provided external to, but within close proximity of, the office space. The lobby also has some other functions that can accommodate overflow, including shared conference rooms for all the tenants in the building. There is also structured parking with EV charging stations, and we will see the number of those stations grow as more drivers switch to EVs.
What are some industries that will be picking up traction in the region in the near future?
Biotech and biomanufacturing have been the headliners here. One of the strengths of the region is that we have top five strength in multiple industry clusters. Most recently, those clusters include biotech (including CROs), pharma, biomanufacturing, agtech and fintech. Coming forward, we are seeing a lot of companies focused on gaming, AI and machine learning. Medical devices are very topical as well. Gaming is interesting because it crosses over with the other tech-related industries in terms of the skills that are required. It would be hard to identify another region with this excellence across multiple industry clusters.
How is RTP advocating for smart growth in the region?
That is a passion of mine. Our greatest opportunity and challenge now is to look into the future and think about the impact of adding 50% more people to the region between now and 2025. Until now, RTP has been a work venue surrounded by the communities that comprise the Triangle Region. We need to change that. We are pretty unique in that the greatest development potential for the Triangle region is right in the middle of it in RTP. We have 7,000 acres, which is about half the size of Manhattan. As a region, we need to focus on regional transportation, affordable housing, equitable public education, the environment, recreational amenities, our RDU airport and infrastructure.
We need to make the right investments to ensure that the attractive characteristics of our region are sustained and enhanced as we grow.
RTP has a unique opportunity because of how it is zoned. A lot of land is zoned exclusively to meet the commercial needs of the park, which fails to optimally utilize the resources that we have at our disposal. We have therefore started to consider how we might make better use of the land. We want to cultivate a certain livability here with open space and other amenities that make people feel more at home.
For example, one thing we are examining is how we could change the entitlement system here to generate money that could go towards an inclusionary housing program in the area. That would place housing in proximity to public transit, job centers, and other amenities. Some of our efforts have also gone toward the Triangle Bikeway, the proposed 30 mile, 17-foot-wide trail that will connect Raleigh, Durham, Chapel Hill and points in between – including HUB RTP. The Triangle Bikeway is a component of the East Coast Greenway that is extending from Maine to Florida. The Triangle Bikeway It is a huge undertaking that will cost around $70 million, and it is still in the planning phases, but we want to enhance the position of RTP in that network so that people can see the promise that RTP holds.
How do you think the development of The Hub will impact population growth?
Already, confirmed tenants have announced they will bring 7,500 new jobs to RTP. Currently, about 25% of the 55,000 people that lost jobs during the pandemic are back to work. Over the next 18 months or so, we will be up to 62,000. The Hub is for companies that are either in the region or looking to come here who want to be very thoughtful and purposeful about their workplace strategy. Flex work seems like it is not working out as well as some thought it might, so employers might now be looking toward a more customized work experience for their employees. Many of the employers we have spoken with have indicated that their current workspace will not meet their future needs. Those spaces will then need to be rethought to attract and retain talent..
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