Vacancy rate may grow as Blue Cross looks to save

Posted on July 15, 2010 by - In the News, Office, Triangle

July 15th, 2010
News & Observer

Blue Cross and Blue Shield of North Carolina’s decision to review its real estate portfolio as it looks to slash expenses is part of a worrisome trend for the local real estate market.

Like GlaxoSmithKline, Blue Cross is one of the larger and more stable employers in the Triangle, and one that wasn’t expected to be a major contributor to the region’s rising vacancy rate.

Blue Cross owns roughly 825,000 square feet of office space in Durham and Chapel Hill. The majority of that space is at the company’s 40-acre campus along U.S. 15-501 in Chapel Hill and its customer service center and campus buildings on University Drive.

The Triangle office vacancy rate was 18.3 percent in the first quarter, according to Karnes Research, a Raleigh firm that tracks commercial real estate trends. That’s the highest it’s been in more than a decade and nearly three percentage points higher than it was in the first quarter of 2009.

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Crown Realty adds to Imperial Center portfolio

Posted on July 12, 2010 by - In the News, Industrial, Triangle

July 12th, 2010
News & Observer .biz

After selling a distribution facility last fall, Crown Realty and Development has added to its portfolio in the Imperial Center business park near Research Triangle Park.

The Irvine, Calif. company paid $7.475 million for a 182,000-square-foot warehouse at 4400 Emperor Boulevard. The property is fully leased to Phoenix Telecom Solutions, which moved in in March.

The warehouse vacancy rate in the Interstate 40/RTP submarket was 11.4 percent at the end of the first quarter, according to Karnes Research of Raleigh, up from 9.9 percent during the first quarter of 2009.

The warehouse vacancy rate for the entire Triangle was 15.3 percent in the first quarter.  The I-40/RTP submarket contains about 50 percent of all in the industrial space in the Triangle.

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