The Research Triangle Park Briefing Transforming the Regions

The Research Triangle Park: Briefing

Transforming the Region’s Economy RTP was founded in 1959 by business, government and academic leaders to stem the “brain drain” and shift the agricultural, manufacturing and government economy to a research and technology focus. It was a BIG BET! The Research Triangle Foundation (RTF) is the non-profit entity responsible for the management, development and relationships within RTP. 2

How has that ‘Big Bet’ and the commitment of the Triangle Region paid off? § 5

We are extremely smart and well connected… Educational Attainment & Connectivity Ø 45. 9% College Degree 23. 3% Bachelor 14. 2% Graduate/Professional Ø Three tier one research universities Ø Two nationally ranked business schools Ø Two nationally ranked engineering schools Ø Nine other colleges and universities and seven technical community colleges Ø 150, 000+ students (university/community college) 24, 000+ bachelor degrees or higher earned a year

RTP TODAY

RTP Today Scale 7, 000 acres (2, 833 hectares) research park University Connections • Duke University • North Carolina State University • UNC - Chapel Hill Critical Mass • • 170+ world-class firms employ 40, 000 full-time workers 22. 5 million ft 2 of developed space 26 Multi-tenant buildings 4 Office/Lab Incubators Impact • $2. 8 billion in capital investment • $2. 91 billion annual payroll 12

DIVERSE PORTFOLIO 4% 2% Life Sciences 2% Information Technology Business and Professional Services 8% 9% 40% 14% 21% Scientific Associations, Foundations, and Institutes Material Sciences and Engineering Retail Amenities and Service Providers Environmental Sciences

RTP COMPANY MIX LARGE AND SMALL Number of Employees 1996 2011 over 5000 2 1 1000 -5000 3 9 500 -1000 5 5 250 -499 7 9 less than 250 93 151 not reported 18 N/A 128 175 Total 14

NURTURING NEW COMPANIES Over 1, 800 start-ups have been created by RTP companies & the three research universities since 1970 Park Research Center • 13 -building campus • 75, 000 ft 2 of office/lab space First Flight Venture Center • Established in 1991 • 16, 000 ft 2 of office/lab space • >150 graduates Hamner Institutes for Health Sciences • 150, 000 ft 2 facility • Planned buildout of 1, 000+ ft 2 Alexandria Innovation Center • Owned and managed by Alexandria Real Estate Equities, Inc. • 150, 000 ft 2 campus 15

RECREATIONAL AMENITIES • 16 miles of jogging/pedestrian trails • 4 softball diamonds (spring/summer leagues) • 12 volleyball courts (9 grass and 3 sand) • 2 miles of mountain biking trails

LOCATING IN RTP

Project Opportunities & Challenges Building Sites Remaining - Site Acerages 12 -100 s Leased space (Mulit/Single Tenant) Entrepreneurial/Start-up Space Redevelopment Phase 1 18

GREENFIELD DEVELOPMENT Sites ranging from 12 acres to 100+ acres $125, 000/AC - $175, 000/AC 19 Sources: North Carolina State Demographics (2000, 2005), U. S. Census American Community Survey (2000, 2005), Employment Security Commission of North Carolina (2006)

RTP Covenants Updated March 2013 » Control uses » Allow certain manufacturing activity with high degree of scientific input (determined by percent of employees in technical, professional and kindred classifications, by industry) » Establish Board of Design » Grant Right of First Refusal to repurchase property for resale » Establish Owners & Tenants Association and association voting rights » Property taxes are only paid to the county. RTP cannot be annexed into surrounding municipalities 20

Multi-tenant Buildings / Developments • Research Commons • Park Center • Progress Center • One Park Drive LEASED SPACE Buildings on Individual Sites • 7001 Development Drive (205, 310 SF) • 8001 Development Drive (262, 000 SF) RTP Area Average Pricing Details • Class A Office - $18 – $22 sqft Full-Service • Manufacturing: $8 - $12 sqft NNN 21 Sources: North Carolina State Demographics (2000, 2005), U. S. Census American Community Survey (2000, 2005), Employment Security Commission of North Carolina (2006)

RTP Redevelopment

BUILD A TRANSFORMATIVE VISION FOR THE FUTURE Beukenhorst (Park 2020) – The Netherlands

MARKET OBJECTIVES The goal of the Master Plan is to create an environment that will allow RTP to continue to be an economic driver for the innovation economy. This goal will be achieved by maintaining the Park’s attractiveness to existing tenants and owners, facilitating opportunities for existing companies to expand on site, and broadening the Park’s appeal to additional types of companies, including those not historically found at RTP. Retain Existing Tenants Continue to Attract Large Companies Attract Broader Range of Tenants

Realizing the Plan • Input from Park companies and the community • Multiple projects phased over time • Regulatory updates & use changes • Collaboration with partners: owners, universities, government, developers 25

Development Clusters Mixed-Use Center Park Center Research Cluster 27

Development Clusters: Mixed-Use Center § Research is the core land use § Mix of retail, residential, hotel and education § Shared Open Spaces 28

Development Clusters: Mixed-Use Center 29

Development Clusters Mixed-Use Center Park Center Research Cluster 30

Development Clusters: Park Center § Business support cluster § Regenerate and renew § Increase intensity § Restore natural systems 31

Development Clusters: Park Center 32

Development Clusters Mixed-Use Center Park Center Research Cluster 33

Development Clusters: Research Cluster § Research focus § Amenity core § Increase intensity through infill § Integrate natural systems 34

Development Clusters: Research Cluster 35

Make RTP Land More Productive Zoning for Infill Development Research & Office Space Jobs Current Capacity Master Plan Capacity 26 M sf 84 M sf ~ 45, 000 ~ 150, 000 36

Bob Geolas President & CEO Research Triangle Foundation geolas@rtp. org www. RTP. org @Bob. Geolas - Twitter THE RESEARCH TRIANGLE FOUNDATION OF NC @The. RTP 919. 549. 8181 Mason Ailstock Vice President of Business Developmen Research Triangle Foundation ailstock@rtp. org www. RTP. org @Mason. Ailstock - Twitter