Horseshoe at Hub RTP signs first office tenant, but challenges remain
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Software firm Genesys is relocating its Durham office on Emperor Boulevard to Horseshoe at Hub RTP in Research Triangle.
The California-based company is the office building’s first tenant since coming online in late 2024.
With office vacancies at record highs and Class A “top-of-the-line” buildings sitting empty across the Triangle, it’s a good sign in an otherwise tough market.
“We’re extremely pleased,” said Erik Johnson, co-founder of Charlotte-based White Point, Horseshoe’s developer.
Built “on spec” with no tenants lined up before construction, Horseshoe is a trio of buildings wrapped around a courtyard on Elion Drive inside Hub RTP’s 100-acre district.
It includes up to 124,000 square feet of office space and 32,800 square feet of retail and restaurants — part of the Research Triangle Foundation’s long-term vision to transform the business park into a 100-acre “live-work-play” destination. (Hub RTP also includes Frontier RTP, a startup community, and Boxyard RTP, a dining hot spot built from upcycled shipping containers.)
In recent weeks, Horseshoe has announced a string of retail and restaurants — including a second location for the Durham Indian restaurant Cheeni and Knightdale’s Prime BBQ. But it’s taking longer to fill its office space, even with high-end amenities like a golf simulator, gaming zone and access to 16 acres of walking trails.
Genesys, which develops artificial intelligence software for call centers, is leasing 26,000 square feet on the fifth floor of the new building. It will offer “a mix of flexible workspaces and dedicated offices,” alongside conference rooms, a video production suite, cafe, and multiple lounge areas.
The firm said it expects to move this fall.
“Our team is excited to take advantage of all the retail amenities and recreational experiences available just outside of our office,” said Karen Lalli, VP, global facilities and real estate at Genesys.
In the meantime, Horseshoe remains only around 20% leased. Some 98,000 square feet of office space has yet to be filled.
White Point said it expects to make additional announcements in the coming weeks.
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Triangle office market in 2025
High interest rates, the rise of hybrid work and weak tenant demand since the pandemic have pushed the Triangle’s office vacancy rate to 21% — up from 20.6% in the previous quarter and from 18.9% a year ago, according to CBRE’s 2024 fourth-quarter market report.
Both in the Triangle and nationally, vacancies are at their highest since 1979, beating out records set in 1986 and 1991.
Across all corners, office buildings, new and old, are sitting vacant. Roxboro at Venable in Durham, delivered in 2022, has no tenants. Raleigh Iron Works is 60% occupied. 1000 SOCIAL at The Exchange is 56% occupied. Tower 5 at the North Hills Innovation District in Midtown Raleigh is 17% occupied.
As companies continue to reevaluate their needs, analysts say the predominant trend continues to be tenants shrinking their footprints upon renewal or relocation.
But “green shoots” have also emerged. Leasing is on the uptick. And for the first time since 2011, the region’s construction pipeline is empty after recent deliveries — like Horseshoe — late last year.
“With no new supply slated in the near term and demand expected to increase, fundamentals should begin to improve in 2025,” said Elizabeth Gates, a CBRE Raleigh senior analyst. “Vacancy for top-tier buildings is expected to fall rapidly, with competition for space likely to become fierce by 2026.”
This story was originally published February 24, 2025 at 3:23 PM.
