Downtown Raleigh Alliance releases annual State of Downtown Raleigh report: 'Very excited'

RALEIGH, N.C. (WTVD) -- Downtown Raleigh Alliance released its annual State of Downtown Raleigh report Thursday afternoon.

The findings, presented during an event at the Martin Marietta Center this afternoon, provided details of how the area is growing.

"Since 2020, we've either built or have under construction over 4,500 residential units just in downtown, which is incredible growth. That will add over 6,000 more people to the downtown population. We're already seeing and feeling that. Residential growth has been great. Right now, we lead the nation in apartment leasing in both Raleigh and in downtown, and so that's really the star of our economy right now," said Bill King, the President and CEO of Downtown Raleigh Alliance.

King said focusing on increasing the population has taken particular importance since 2020, as many employers shifted to remote and hybrid work schedules.

"We get good office foot traffic Tuesday, Wednesday, Thursday, but Mondays and definitely Fridays, not so much. Residents are an important part of having people down here," said King.

The report notes 51 new storefront businesses have opened year-to-date through Aug. 1, a group that includes Parcero Studio on South Wilmington Street.

"I love being here. Every day is better than the day before. Every month is better than the month before," said owner Johana Melbert.

Melbert, a military veteran and former deputy with the Wake County Sheriff's Office, started the business from home before taking it to vendor markets. Last year, she opted to open a brick-and-mortar location and has been encouraged by the response.

"(Customers are) like, 'wow, we didn't know there was a yarn store downtown Raleigh,'" said Melbert.

She discussed the value of large-scale festivals, which draw traffic to the area.

"We have people from all over the United States. We even have people from Europe that come to Raleigh, which has been really cool to see," Melbert said.

Downtown Raleigh Alliance reports there were 21.3 million visitor visits last year, an impressive figure, though one King said he believes they will be able to improve moving forward.

"We've been turning away business for years because we don't have enough rooms or we don't have the right space in the Convention Center. Building those things in tandem, I think, will absolutely let us up our game," King said, alluding to plans to expand the Convention Center and the construction of the new Omni Hotel.

Officials hope the addition of 600 hotel rooms will make the city more competitive in attracting festivals and events.

"Our ability to host larger events will help a lot. We don't have the arena downtown. We don't currently have a sports facility, so our Convention Center and our Amphitheater are really the drivers of that," said King.

Melbert hopes greater recognition of the area will help existing storefronts.

"More advertising (would be great). That's what we need, especially in the market. That will be great just to have some kind of reference for the tourists," Melbert said.

During Thursday's presentation, King discussed ways to amplify all aspects of downtown, including through activations.

"It's special to be in a downtown where there is this beautiful greenery that's been preserved for communities to share," said Amanda Faries, who co-owns Lucky Tree in Moore Square.

This is the coffee shop's second Raleigh location, with Faries confident in the area's growth opportunity.

"It's easy to look at this area and see the potential," said Faries.

Down the road, King said food and beverage sales on Fayetteville Street have increased 12.7% since 2023, a period which has also seen a 12% increase in foot traffic. The expanded presence presents opportunities for nearby businesses to capitalize.

"We are very excited with all the events and all the efforts put forth from the city of Raleigh to just make it a space where families and communities can enjoy the green space," said Faries.

Since 2015, there has been $8.3 billion in downtown development investment that's under construction, completed, or planned. Further, office space vacancy rates continue to outperform national averages, as residential occupancy sees high marks.

"We're leasing the most apartment units in the country right now, which is great. We built a lot. We've had thousands of units under construction across Raleigh, and we're seeing those finally lease up, which is great in downtown. We're about 92% occupied at a stabilized rate," King said.