Downtown Raleigh saw significant activity in the fourth quarter, with 301 Hillsborough delivering, adding 262,543 square-feet of Class A office inventory. Upon delivery, Pendo expanded into their 132,663 square foot space from Wells Fargo at 150 Fayetteville, largely attributing to the positive absorption in the CBD. Trammell Crow, HM Partners, and High Street Residential broke ground on 400H, which will add a total of 350,000 square feet of mixed-use office, retail, and residential space to the market, with 150,000 square feet designated for office. Grubb Ventures also broke ground on their 550,000 square-foot mixed use project, Ironworks, three miles north of downtown. At the end of the quarter, Vancouver-based City Office REIT acquired a four-property portfolio including One Glenwood and Tower 2 at Bloc [83] in the Downtown Raleigh submarket from Maryland-based Heritage Properties for $330 million, or $666.50 PSF.
