Fallon Co. Pre-Leases 125 KSF for Raleigh Tower
- Jun 03, 2019
Software startup Pendo has inked a deal with The Fallon Co. to move its corporate headquarters to an upcoming Class A tower in downtown Raleigh, N.C., where it will occupy 125,000 square feet. The 19-story, 300,000-square-foot building is scheduled for completion in the last quarter of 2021. Pendo is expected to shift all its employees there in early 2022.
The company will move to the future tower at 301 Hillsborough St. from its current location in the Wells Fargo Capitol Center at 150 Fayetteville St. a few blocks to the east. Pendo will take up five stories in the new tower, which will anchor a new 1.7-acre mixed-use development by The Fallon Co. To be built in two phases, the overall project designed by Duda | Paine Architects will feature hotel, retail and residential space in addition to the prime office building.
Pendo, which has roughly 250 employees in its current location according to a report in The News & Observer, plans to add 590 jobs in Raleigh over the next five years. The homegrown startup has 337 employees globally, having bagged $106 million in venture capital funding over the past four years—making it a standout performer among software companies in North Carolina’s Research Triangle region.
JLL research indicated last year that office properties under construction in Raleigh have an average preleasing rate of 50 percent, amid an attractive business climate in the Triangle region, which also includes Durham and Chapel Hill.
Raising Southern profile
Mixed-use urban developer The Fallon Co., which built the Fan Pier waterfront neighborhood in Boston’s Seaport District, purchased the city block at 301 Hillsborough St. in 2017 for $17 million. Developers Lundy Group and High Street Holdings had assembled the five-parcel site.
With additional projects in Boston, Charlotte and New York City, The Fallon Co. has developed more than 6 million square feet of properties totaling $5 billion. In 2017, the Boston-based firm acquired a 12-story office building in Charlotte’s Second Ward to serve as its regional headquarters, paying $24.5 million for the property, according to Yardi Matrix data.