Downtown Raleigh’s momentum isn’t accidental. It’s engineered—through strategy, collaboration, and the steady, behind-the-scenes work of the Raleigh Planning Department, City Council and Downtown Raleigh Alliance (DRA). This nonprofit has emerged as a powerful force in shaping an urban core that is not only livable, but investable.
The Unsung Engine of Downtown Vitality
As highlighted in our previous article, Raleigh’s downtown population has more than doubled over the past decade—driven by an influx of young professionals, recent college graduates, and knowledge workers fleeing high-cost metros for affordability and opportunity. The DRA’s development priorities align squarely with this demographic.
Their efforts are shaping a downtown that fits how these new residents want to live: walkable, vibrant, social, and filled with experiences. Here’s what that looks like:
- $7.3 Billion in Development Activity
Includes $2.9B in completed projects, $1.2B currently under construction, and $3.2B in the planning pipeline. Major investments are concentrated in lifestyle-friendly areas like the Warehouse District, Glenwood South, and around Moore Square and Seaboard Station. - Storefront and Small Business Support
DRA actively recruits and supports storefront businesses, helping to launch 23 new openings in Q1 2025 alone, with another 28 on the way. These businesses are focused in high-foot-traffic zones like Fayetteville Street, the Warehouse District, and the Glenwood South corridor. - Public-Private Catalysts
Collaborating with city and state stakeholders, the DRA helps drive high-impact public projects like the Raleigh Convention Center expansion and the relocation of Red Hat Amphitheater, each designed to spur investment in surrounding blocks. - Clean & Safe Programs
The DRA’s Ambassador Program ensures public spaces remain clean, welcoming, and approachable—especially important in nighttime districts and around transit stops. - Events That Drive Energy
Flagship events like the Dreamville Festival at Dorothea Dix Park, Hopscotch Music Festival, GalaxyCon Raleigh, and Animazement bring hundreds of thousands downtown. These events generate hotel demand, increase foot traffic, and support recurring retail revenue. - Livable Public Spaces
Improvements to Moore Square, Smoky Hollow Park, and Chavis Park, along with greenway expansions, reinforce the outdoor lifestyle many young residents prioritize.
Part 2: Why This Matters for Investors
The DRA isn’t just making downtown look good—it’s making real estate work.
When you combine a growing, urban-oriented population (as covered in Article 1) with infrastructure that supports their lifestyle, you get a market that delivers strong, sustainable returns.
Here’s what that looks like in investor terms:
- Strong Occupancy and Rent Growth
Despite record setting new apartment deliveries, stabilized apartment occupancy sits at 92.3%, with rents averaging $1,829/month downtown—supported by live-work-play amenities and continuous foot traffic. - Mixed-Use Durability
Retail is thriving where residential demand is high. Events and activations feed ground-floor commerce, reducing vacancy and bolstering mixed-use investment strategies. - Premium Rent Zones
Walkability, bike access, dining, co-working, and nightlife in districts like Glenwood South, Warehouse, and Moore Square are supporting premium rent levels and longer tenant retention. - Convention and Tourism Impact
With the $350M Convention Center expansion and a 550-room Omni Convention Hotel on the way, downtown’s visitor economy is poised to grow. For nearby landlords and operators, that means more jobs, more renters, and more velocity in the market.
In Summary
The Downtown Raleigh Alliance isn’t just polishing the city—it’s positioning it. For real estate investors, their work reduces risk and enhances value. In a city welcoming thousands of new residents who crave community, culture, and convenience, DRA is building exactly the kind of downtown where rental housing—and your investment—can thrive.
Eddie Coleman, CCIM, is the Principal Investment Officer at NC Capital Group. With over 40 years of experience in Commercial Real Estate in North Carolina and South Carolina, his experience spans multifamily, retail, office, historic adaptation, etc. In addition to advising clients and brokering transactions, he has extensive knowledge of North Carolina through experience in corporate site acquisition, development, capitalization, HUD financing, etc. He holds the prestigious Certified Commercial Investment Member (CCIM) designation.