Real Estate News

Charter Square office building to open this week

Charter Square, the 11-story office building at the south end of Fayetteville Street, opens this week.

A ribbon cutting is scheduled for Wednesday at 5:30 p.m.

Charter Square is the first new office building to open in downtown Raleigh since the State Employees Credit Union opened its 12-story office building next to the Nature Research Center in 2012.

Construction of the $63 million building began in March 2014. It’s opening was delayed after three construction workers were killed and another seriously injured when an exterior lift system tore from the side of the building in March.

The 243,000-square-foot building is the first of two towers planned for the site. The law firm Womble Carlyle Sandridge & Rice is the largest tenant to commit to the Charter Square building. The firm will take between 43,000 and 45,000 square feet.

The project is a joint venture of Raleigh-based Dominion Realty Partners and equity partner Prudential Real Estate Investors.

Very few speculative office buildings have been built in the Triangle since 2008. Financing for such projects is difficult to obtain, and typically requires a developer to have a substantial about of space pre-leased.

But more projects could soon break ground, particularly if Charter Square leases up quickly.

The office vacancy rate in downtown Raleigh is now under 8 percent, according to DTZ Research, with few large blocks of space available. And there are several other new downtown office projects at various stage of development.

One project that is expected to move forward later this year is developer Gregg Sandreuter's Edison office building planned for the corner of Martin and Wilmington streets.

Bracken: 919-829-4548;

Twitter: @brackendavid