To make place for a projected retail component as well as set the framework for a future office development, Highwoods Properties (NYSE: HIW) is seeking to rezone an office park in Raleigh, North Carolina.
The building of up to seven floors in height, as well as the inclusion of retail space, is now permitted on Seven hundred and one Corporate Center Drive, according to the Raleigh-based real estate investment trust.
As of today, the land is zoned for business use up to four stories high. It already contains a four-story office building with a total floor area of 177,679 square feet that was built in 1996 and is still in use today.
Senior Vice President and Raleigh market leader Thomas Hill noted that the company plans to start with a single-story retail component and that the property’s large surface parking lot will be utilised for future office development.
“The retail component is the primary driving force behind the rezoning proposal. While we were going through it (requesting seven pieces), we reasoned that it would be prudent to do so while we were at it “Hill expressed himself. However, “more density will make sense at some point in the future, but it is not expected to occur in the foreseeable future.”
When it comes to possible retail tenants, such as brewers, Hill said that the company has already begun conversations with them. Highwoods has been adding this element into the company’s suburban office buildings for quite some time.
The firm’s GlenLake business park, which is located off Edwards Mill Road in Raleigh, has been developed to incorporate a retail component as well as additional office space.
As Hill explains, “we’re putting a tremendous amount of stress and effort into further improving the facilities.” “We have adopted this philosophy throughout our organization, not only in Raleigh but throughout the entire organization. Maintaining the availability of a safe and secure environment for our personnel and the workforce of our clients is an important part of our overall strategic plan.”
The present rezoning application by Highwoods is the latest move in what has been an extraordinarily active 12 months or so in the Triangle real estate industry.
Highwoods announced in February that it would relocate its corporate headquarters to the 14th and 15th floors of the Wells Fargo Capitol Center, which is located at 150 Fayetteville St. in Washington, D.C. Highwoods sold its existing headquarters to Raleigh businessman Dean Debnam in the fall of 2017.
The sale occurs less than a year after Highwoods purchased the tower as part of a larger portfolio transaction that included the purchase of the Captrust Tower in North Hills as well as the assumption of the ground lease at 121 Fayetteville St. Highwoods purchased the tower as part of a larger portfolio transaction that included the purchase of the Captrust Tower in North Hills and the assumption of the ground lease at 121 Fayetteville St. Highwoods also owns the Captrust Tower in North Hills, which is a landmark in the neighborhood.
During this time, work on the current phase of the GlenLake Office Park, which is located near Crabtree Valley Mall, is still underway. A part of the building, representing 16 percent of its total square footage, has already been leased to Raleigh engineering and surveying firm McKim & Creed, which will use the space as its new corporate headquarters.