New Publix seen as boon to downtown Raleigh business, residential growth

Raleigh leaders said they hope Publix will attract more people and money to an area that’s experienced a slip in spending because of shutdown orders to limit the spread of coronavirus and protests in recent months that have sometimes become violent.

Hotel occupancy rates downtown are down, food and beverage sales in July were 56% less than in the same month last year, while foot traffic was off by 74%, according to the Downtown Raleigh Alliance.

But despite the challenges, residential occupancy rates downtown remain high.

“Our apartments, at this point, are still over 90% occupied, which is good,” said Bill King, president and chief executive of Downtown Raleigh Alliance.

Residential occupancy downtown was at 97% in August, up from 94% in May 2019.

The new neighborhood is being called "Smoky Hollow."

"We remain very positive about the market and optimistic about the market," said Rob Reid, new development manager for Kane Residential, which is building the two apartment projects.

While reports indicate people are fleeing bigger cities like New York, Reid said retention remains high in Raleigh. To lure new residents downtown, apartments are offering incentives, including up to two months rent-free.

"We’ve seen that downtown Raleigh has been extremely resilient through some challenging times, and we think that it’s still viewed as one of the most premiere places to live in the Southeast," he said.