New downtown Raleigh high-rise signs string of office tenants amid uptick in leasing
After sitting empty for months last year, downtown Raleigh’s new high-rise 400H has signed a string of new office tenants.
The uptick in leasing is a positive sign in a slow commercial real estate market where vacancy rates have reached their highest levels since 1979, according to Moody’s Analytics.
The building’s new leases for the 20-story tower on Hillsborough Street offer “some validation,” said Woody Coley, senior vice president of development and investment at Texas-based Trammel Crow Co., which has developed the project in partnership with HM Partners.
“The current business cycle is certainly not a tailwind where success looks easy. But Raleigh, specifically downtown Raleigh, will continue to attract new-to-market tenants. We offer an inspiring workplace to users that see the value of a downtown presence.”
Delivered in mid-2023 and valued at around $200 million, it was “built on spec,” without tenant commitments, and features 150,000-square-feet of Class A office space — alongside 242 luxury condos and 16,000 square feet of ground-floor retail space — at the intersection of the Warehouse, Glenwood South and Capital districts.
The most recent signing includes HKS, an architecture firm headquartered in Dallas that specializes in designing sports, education and healthcare venues. In 2022, it set up a satellite office inside Spaces at the Dillon, a downtown Raleigh co-working space, and is now expanding into a 4,763-square-foot spec suite on the fourth floor in 400H.
“We wanted to be close to transit, and think about where our employees live,” said Lynn Dunn, a principal at HKS. “400H also has a great rooftop terrace and is walkable to restaurants, she said, which are options for employees and clients.
In recent months, STV Inc., a professional services company for infrastructure services, signed a 6,500-square-foot lease for the fourth floor. The New York-based company plans to move in May. And last October, real estate firm Savills relocated into the building after signing a seven-year lease for 3,000 square feet on the fourth floor. Triangle Business Journal first reported earlier signings.
Even with these recent signings, 400H’s office space is still only around 10% leased, Coley said.
The retail and residential spaces have filled up more quickly. Press Coffee, Cocktail and Crepes and Brass Tap opened on the ground floor. The apartments are 90% leased.
This story was originally published February 6, 2025 at 5:00 AM with the headline "New downtown Raleigh high-rise signs string of office tenants amid uptick in leasing."
