Raleigh, North Carolina

RETURN TO FEATURED MARKET, Raleigh, Durham, Chapel Hill

APARTMENT SUBMARKETS
CENTRAL

Central Raleigh is defined as the area within the Beltline and
includes downtown, the campus of NC State University and
several established neighborhoods. Employment centers are
concentrated in office and institutional complexes downtown,
at the university, and Cameron Village office and retail center.
• Demand strengthened with 198 units absorbed over the
past six months, enabling vacancies to improve to 7.4%.
• There were (-102) tear-downs in this submarket. Sunchase
American tore down (-9) units at Grove Park on McNeil
Street. Grubb Ventures has torn down the initial (-93)
units at Whitaker Park on Noble Road, with demolition of
the remaining 101 units scheduled for completion in August.
• There were 104 new units completed in this submarket.
DHIC completed 80 tax-credit units at Carlton Place on
East Street. Boylan Development completed the first 24
units at Windsor upon Mellow Field off Six Forks Road.
• Crosland continues construction on the final 105 units in
the second phase at Oberlin Court off Wade Avenue.
Boylan Development continues construction on the remaining
31 units at Winsdsor upon Mellow Field.
• Broad Street Partners is planning to begin work in May on
350 units in the first phase at their project on Atlantic Ave.
Fairfield Residential plans to start construction in February
on 378 units at Centerview off Jones Franklin Road. Kotarides
is planning 282 units at Clairmont on Western
Boulevard. Boylan Development plans to start work this
summer on 300 units at Windsor Manor on Six Forks
Road at Atlantic Avenue.

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EAST

East Raleigh includes the emerging middle income suburbs of
Knightdale, Wendell, Garner and Zebulon. Road projects
meant to ease traffic, such as the extension of I-540 from Capital
Boulevard to the US-64 bypass from Knightdale to I-440,
are attracting several employment centers to East Raleigh.
Raleigh-East is one of the smallest submarkets, representing
less than 6% of the Triangle apartment market with 5,433
units.
• Demand weakened with negative (-71) units absorbed over
the past six months, resulting in an over two percentage
point increase in vacancies to 9.0% currently.
• Greystone Development completed the first 48 units at
Greystone at Widewaters off Widewaters Parkway. There
are an additional 284 units still under construction.
• H.H. Hunt plans to start construction in May on 300 units
at Ashton Village on Timber Drive. Blue Ridge Companies
expects to begin work in late 2007 on 288 units at
Berkshire Park on Knightdale Blvd.
• The average rent in the Raleigh-East submarket is $719
per month. One bedroom units average $629, for two bedrooms
the average rent is $728, while the average rent for
three bedroom units is $861.
• Existing communities in this submarket increased their
rents 3.5% in the last six months, which is the largest increase
of any submarket.

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NORTH

North Raleigh has traditionally been a residential area, with
concentrations of apartments along streets such as Six Forks,
Falls of the Neuse and Wake Forest. North Raleigh is also
home to numerous office parks. The Raleigh-North submarket
contains 15,814 apartment units, accounting for just over 17%
of the Triangle market.
• Demand strengthened with 247 units absorbed over the
past six months, enabling vacancies to improve to 7.2%.
• Supply shrank by (-174) units in the Raleigh-North submarket.
Kane Realty demolished (-204) units at North
Hills Terrace off Six Forks Road at I-440. J.W. Hunter
completed the first 30 units at Fieldstream at Richland
Hills off Capital Boulevard.
• There are 306 units currently under construction in this
submarket. J.W. Hunter continues work on the remaining
30 units at Fieldstream at Richland Hills. Woodfield Investments
continues construction on 276 units at Millbrook
Green on Millbrook Road at Green Road.
• An additional 959 units are planned for the North submarket.
Trammell Crow plans to start construction in the third
quarter on 288 units at Alexan at Ligon Mill on Caveness
Farms Avenue. Wood Partners is currently grading for
291 units at Alta Verde on Six Forks Road at Lynn Road.
Faison expects to start construction in late 2007 on 300
units at Triangle Town Blvd. DHIC is currently grading
for 80 units at Wakefield Hills on Common Oaks Drive.

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NORTHWEST

Northwest Raleigh, similar in demographics to north Raleigh,
is bisected by Glenwood Avenue, the predecessor to I-40 that
connects Raleigh and Durham and also serves Raleigh-Durham
International Airport. Included in the submarket is Umstead
Park, a 5,600 acre preserve between US-70 and I-40.
Employment centers in Northwest Raleigh are located within
office parks along Glenwood Avenue.
• The Raleigh-Northwest submarket contains 9,766 units,
representing nearly 11% of the overall market.
• The vacancy rate has improved and is now 7.1%. Three
bedrooms reported the highest vacancy rate at 9.4%.
• Demand remains strong with 172 units absorbed over the
past six months and 192 units absorbed in the previous six
months.
• Woodfield Investments is planning 233 units at Woodfield
Glen on Glenwood Avenue and Lynn Road. York Residential
plans to start construction this summer on 350 units
at Crabtree Village on Crabtree Valley Avenue.
• The average rent in the Raleigh-Northwest submarket is
$710 per month. One bedroom units average $617, for
two bedrooms the average rent is $763, while the average
rent for three bedroom units is $978.
• Existing communities in this submarket increased their
rents 5.2% in the last twelve months.

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SOUTHWEST

The Raleigh-Southwest submarket is located south of I-40 and
west of Lake Wheeler Road. This submarket is one of the
largest in the Triangle with 16,256 units and includes the
rapidly growing towns of Cary, Apex and Morrisville.
• Demand weakened with negative (-16) units absorbed over
the past six months as an additional 365 units were added
to the supply, resulting in an over two percentage point
increase in vacancies to 7.1% currently.
• Metropolitan Development completed construction on the
first 24 units at Creekside Hills on Olive Chapel Road.
Crosland completed construction on 341 units at Weston
Lakeside on Winstead Drive.
• Contravest continues construction on 240 units at Courtney
Reserve at Cary Park on Carpenter Fire Station Road.
Metropolitan Development continues construction on the
remaining 292 units at Creekside. Woodfield Investments
continues construction on 393 units at Tryon Village on
Tryon Road. Fairfield Residential continues work on 435
units at Village at the Park on Highway 55.
• Trammell Crow plans to begin work this spring on 288
units at Alexan at Panther Creek on McCrimmon Pkwy.
Davis Development is currently grading for 266 units at
Carrington Park on Lichtin Blvd. NRP Group has plans
for 192 units at Chatham Pointe on Old Apex Road. Goldberg
Companies has plans for 194 units in the first phase
at Laurel at Crossroads on Crossroads Blvd. Boylan Development
expects to start construction in June on 144
units at Main Street Square on South Main Street. Broad
Street Partners plans to break ground in February on 350
units at Tradition at Stonewater on Stone Water Glen Ln.

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Market Data Information Source: © February, 2007 Real Data Aptindex