Local News

More Downtown High-Rises Mean Higher Raleigh Property Values

Posted June 20, 2006 8:57 a.m. EDT

— As more high-rise buildings go up in Downtown Raleigh, so do property values.

Space around Glenwood South and the Fayetteville Street Mall is now going for $40 to $60 per square foot -- four times the amount from just 10 years ago.

The Raleigh's City Council on Tuesday gave approval for two new high-rises to be built on property the city plans to sell: one parcel on Hillsborough Street that will sell for nearly $3 million and a half acre by the new convention center, for nearly $1.5 million.

"People believe in downtown now, so you are willing to build bigger projects and if you build bigger projects, you can afford the piece of property," said downtown developer Greg Hatem.

Selling the city land now is part of a strategic plan to get more activity downtown.

Raleigh Mayor Charles Meeker said he thinks the increased value can partly be credited to the city investment downtown.

The city is spending millions of dollars on a new convention center and Fayetteville Street, and Meeker said he believes that gives private developers more confidence to spend millions of dollars, too.

"These are high-quality projects by local developers, so it shows people in our community are reinvesting here -- something we haven't seen for years," Meeker said.

For those who have property downtown or are just buying it now, appraisers predict as more high-rises are built, property values will increase.

Both of the new skyscrapers include million-dollar condominiums, hotels and retail space.

The projected tax revenue from the two projects is expected to stretch into the millions.