Kane Realty Tops Out Raleigh Office Tower

One North Hills topping out celebration. Image courtesy of Brasfield & Gorrie

Local developer Kane Realty Corp. has topped out One North Hills, a Class A office tower in the North Hills Main District Expansion project in Raleigh, N.C. Brasfield & Gorrie is the building’s general contractor.

The 10-story, 266,000-square-foot office tower features ground-level retail, a two-story lobby connected to a lounge and flexible event space, a grand terrace, ground-floor conference space. The building is scheduled for delivery in the third quarter of this year and is targeting LEED Silver designation.

The North Hills Expansion project, just off the I-440 Beltline, also includes a 12-story residential tower, a five-story creative office building, and a parking deck at the base of the development.

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Duda|Paine Architects, of Durham, N.C., is the project architect. The overall project is expected to complete in the third quarter of 2024.

Raleigh-Durham’s building boom

Although the Raleigh-Durham metro enjoys a 3.3 percent unemployment rate, one of the lowest in the Southeast, the market’s office sector has an overall vacancy of 12.8 percent, according to a fourth-quarter report from Cushman & Wakefield.

That figure, the report points out, has been boosted by quantities of sublease space, such that net absorption for 2022 was a negative 64,900 square feet. Spaces under 10,000 square feet are the most sought after.

Continued development—and subleasing—are expected to keep office vacancy levels substantial, Cushman & Wakefield projects.

Last September, DeWitt Carolinas got underway with 1000 Social, the first of two 12-story office towers at The Exchange Raleigh, a 40-acre master-planned, mixed-use development.

And just earlier this month, Trammel Crow topped out 400H, a 365,000-square-foot mixed-use project at 400 Hillsborough St. in Raleigh that will include 150,000 square feet of office space.