American Underground is moving its Main Street HQ from Durham’s Main Street. Why?
For the last 10 years, American Underground (AU) has been headquartered on Durham’s West Main Street, leasing 40,000 square feet of office space inside nonprofit Self-Help Credit Union’s building.
The lease is now up.
In a post-pandemic market where deals are slow and office vacancies are high, the startup incubator will return to its original 2010 launchpad: the historic American Tobacco Campus (ATC), just a few blocks west on the other side of the railroad tracks in Durham’s downtown.
AU and ATC are both part of the CBC Real Estate family, a division of Capitol Broadcasting Co.
Since 2004, CBC has been repurposing ATC, a once-abandoned tobacco factory, into a massive mixed-use campus with offices, retail and entertainment spaces. CBC also owns WRAL and the Durham Bulls.
“When we thought about what the future of AU looks like, going home just made sense,” said Laura Zabinski, AU’s executive director, in a video call. “It allows us to reimagine space based on our community’s current needs and be in the hub of where it all started.”
AU’s departure will leave a glut of office space at 201 W. Main St., Suite 100, at a time when vacancies are at record highs, both in downtown Durham and nationally.
Here’s what we know about AU’s move, and how it could impact downtown Durham’s commercial market.
What is AU, and why is it moving (again)?
In 2010, AU launched in the basement of an old tobacco warehouse at ATC in Durham.
Today, it’s one of a handful of Google for Startup hubs in North America and home to 275-plus startups and small businesses, offering flexible workspace options and resources.
A post-pandemic influx of remote employees has driven up demand, and Raleigh-Durham remains in the nation’s top 25 coworking markets in 2025, according to Coworking Cafe.
It’s trickling down. AU is currently 95% occupied, Zabinski said. It encompasses about 65,000 square feet of space across three locations.
Among them: the main office at 201 W. Main St. and floors in the historic S.H. Kress & Co. Building at 103 W. Main St. and Trust Building at 212 W. Main St., all within walking distance of each other.
AU is technically shrinking its footprint. Its new main home in ATC’s Washington building — 324 Blackwell St., Suite 900 in Bays 9 and 10 — is about 30,000 square feet, some 10,000 square feet less than its current spot. But its location, access to amenities, and growth potential make up for it, Zabinski said.
“We’re actually going to be activating more of the campus,” she said. “This is also an opportunity for some of our largest tenants to graduate into other spaces.”
Neighbors include WUNC, Chamber Orchestra of the Triangle, Parker & Otis and Yoga Off East. McKinney and GSK are just across the lawn, and Burt’s Bees just around the corner. AU will also retain some 25,000 square feet of space across its remaining two locations on Main Street.
What will AU’s new headquarters include?
Durham-based Little Diversified Architectural Consulting and Consigli will lead design and construction, which begins in July.
Among its features: coworking spaces, an indoor garden, podcast studio and conference rooms.
Memberships and leasing options are “flexible,” according to AU’s website. Limited coworking starts at around $149 per month, while all-access coworking starts at around $199 per month. A private office starts at around $399 per month.
AU also plans to activate the space through curated events, panels, mentorship sessions, and networking opportunities, in continued partnership with Google and Fidelity Center for Applied Technology, it said.
Even with headwinds, urban mixed-use environments with loads of amenities and services are succeeding, said Eli Bell, director of leasing and asset Management at CBC Real Estate. “We’re seeing that play out. That’s exactly why AU is coming to ATC. We’ve got over 1 million square feet of space here, and we’re 93% occupied.”
Relocating AU also “future-proofs us for what we see happening in commercial real estate,” Bell added.
What will replace AU on Durham’s Main Street?
AU plans to remain open at 201 West Main throughout the build and vacate once first move-ins begin in late 2025.
Self-Help has owned the building since 2000. It will continue to operate it as a space for small businesses and nonprofits, “as we do with our other downtown real estate buildings,” said Dan Levine, its director of real estate.
Chartered in 1983, the nonprofit provides personal and business banking, affordable loans, and financial counseling. It has some 450,000 square feet of commercial real estate in Durham, most of which is in downtown. It also operates 300 affordable apartments.
“Self-Help is not yet making space available for lease, while AU@Main continues to operate there as it prepares to relocate,” Levine said.
This story was originally published June 2, 2025 at 4:33 PM with the headline "American Underground is moving its Main Street HQ from Durham’s Main Street. Why?."
