G1. What markets compete with Raleigh as a destination/convention market?
Louisville, Pittsburgh, Providence, Portland, Austin, as well as big box hotels like Gaylord Nashville, Atlanta Hyatt, and Charlotte Westin, for example.
G2. What is the downtown hotel occupancy rate and average daily rate?
The 2019 year end numbers for downtown are as follows: Occupancy: 75.9%, ADR: $156.92, RevPAR: $119.03. However, the downtown market leaders performed notably better than the average.
G3. How is the market performing in terms of office and residential fundamentals?
- Office market has accelerated in downtown over the past three years and has added 1.2 million square feet since 2015. Downtown office space is currently over 94% occupied with 771,000 square feet under construction and the FNB Tower delivering over 157,000 square feet in December. Absorption of new space has strengthened considerably over the past three years. The Dillon, opened in 2018, was fully leased within 1 year, and One Glenwood, opened in 2019, reaching 96% leased before it even delivered and led to a companion tower starting construction immediately after. Overall, the market continues to deliver new supply while maintaining high occupancy at a competitive rate of $36 per square foot for Class A space. (Page 30 of State of Downtown report)
- Residential fundamentals are very strong in downtown. Since 2015, downtown has delivered 2,665 residential units, nearly all of which are top of the market in rental rates. Our most recent census of residential buildings found them at over 94% occupied. When looking specifically at new buildings and Class A product, those classes also were all between 94%-95% occupied. Currently, 786 units are under construction with a new condo building as part of that pipeline, in addition to townhomes and multifamily rental product. (Page 23 of State of Downtown report)
G4. What is the State and City hotel tax rate?
The hotel tax rate for Wake County is 6% and the prepared food and beverage tax is 1%. There is no state hotel tax. Wake County was granted special authorization to levy the occupancy and food/beverage taxes by the State’s General Assembly.
G5. What is the tallest building in downtown Raleigh currently?
The tallest building in Raleigh, both in feet and floors, is the PNC Tower on Fayetteville Street. The PNC Tower is 538 feet tall (to spire), 32 floors, and was constructed in 2008.
G6. Could there be a new sports arena downtown?
The Raleigh City Council and Wake County Commission recently approved an amendment to the interlocal agreement that directs funding for the hospitality tax. The amendment does not contemplate a downtown sports arena. Any change would require additional direction from the County Commission and the City Council.
G7. Is there a sign-in sheet of the attendees from the February 21 pre-submittal meeting?
Business cards were taken, but there was no requirement to sign in. The city and JLL are still in the process of compiling a comprehensive list.
G8. Is there a compiled list or report of general market data related to market rents, construction costs, recent comparable land sales or listings that can be provided? Can JLL provide that data?
Yes, see links below for this information.