How Raleigh Works

How Raleigh Works

New trends in working are about increasing efficiency, decreasing overhead and doing right by people. 

At the royal blue-painted, Victorian-style house at 101 S. Bloodworth Street, the sounds of drums reverberate each afternoon from a teacher giving lessons in a neighboring building. The back porch offers views of the PNC tower. Some mornings, international visitors cook breakfast in the kitchen of the home and a big black lab named Billy pads around periodically. 

But the 3,000 square-foot house doesn’t serve as a quirky hotel or apartments for 20-somethings just out of college. Instead, it’s home to Clairemont Communications, a PR and marketing firm Dana Phelps started in 2010. 

Six staffers share workspace on the sprawling, light-filled first floor, which includes a spacious kitchen and classic front porch complete with a swing. Upstairs, an Airbnb suite can comfortably accommodate four and two employees from a search fund startup rent out another room. This way, Phelps can cover the mortgage on the home month to month and doesn’t have to take that money out of her business. 

“I do love old houses, that is a personal interest,” says Phelps. The house dates back to 1910. “I also felt this is just a more creative space. I worked in the corporate world for a long time and sitting in a cubicle…in a lot of office spaces, everything is gray. There aren’t a lot of colors, there’s not a lot of sunlight and I wanted something that was totally opposite from that.”

While traditional corporate offices are still, for the most part, the norm here in Raleigh, the way we work is changing rapidly and with it, the spaces where we choose to get our work done. Coworking spaces, public libraries, bars and coffee shops are all increasingly popular, as are houses in districts with mixed use zoning (mainly located downtown). Of course, working from a home office remains a popular choice and employers are increasingly flexible in their understanding that their workers, for at least one or two days of the week, can work better overall if they have that option. 

“It’s getting increasingly difficult to find office space with flexible terms in the way we used to see it happening, even 10 years ago,” says Jess Porta, the director across locations of coworking company HQ Raleigh. HQ opened its first space in downtown’s Warehouse District in 2012 and has since expanded to the top five floors of the Capital Club building on West Martin Street. It will open spaces on Centennial Campus and in the revitalized Gateway shopping center this year, too. 

HQ Raleigh
HQ Raleigh

“It’s all for a good reason,” Porta continues. “It’s all because Raleigh is growing and changing but for startup companies, that can be a challenge. People are drawn to coworking spaces because of the flexibility they provide, but it’s also a community thing. People join because of the flexibility but stay because of the community.”

HQ was the first coworking space to open in Raleigh but several more have followed, including Nest, Industrious and Loading Dock (see chart). The national franchise company WeWork opens its space in One Glenwood this summer and Locality, a coworking space for women entrepreneurs, opens this month in the Warehouse District. 

Many of these offer workspaces for single workers (entrepreneurs, contractors and freelancers), startups (teams of two or three) as well as teams as large as 60 people (some of which have employees working remotely in Raleigh for companies based in larger cities, such as New York or San Francisco). 

The flexibility—no long-term leases, no overhead costs—and amenities—think hammocks and ping pong tables, spacious conference rooms and events spaces, full kitchens, bars with free beer and coffee, permission to bring your pets—are hard to beat. Plus, the opportunities to network and collaborate with other professionals are priceless. 

“Coworking is changing how people think about interacting with one another,” says Porta. “So you’ll see more creative ideas coming out of that.”

Chip Barker, a managing broker and one of the founding principals at Raleigh’s Core Realty Advisors, had a creative idea for structuring workspace for the firm he co-founded along with brokers Carrie Schlegel and Jennifer Crawford last year: they passed on having a physical office space altogether.

“The way real estate works now, no one goes into the office, clients don’t walk in, they don’t come meet you at the office,” Barker says. “You meet them at properties or at a coffee shop nearby.”

So they reached out to lenders and attorneys who had unused office space and, once a week, the 11-member team gathers for a staff meeting. Or, they head to a new home community and meet there.

“This way, we’re getting exposure to an up-and-coming community,” Barker says. “It’s real estate-related, we’re meeting the agent onsite who’s promoting and showing off the community features and we’re interacting with other agents to build relationships with them, talking about best practices, challenges and how to help each other out.”

Additionally, two or three times a week, Barker and other agents post up in local coffee shops such as Jubala and Sir Walter Coffee and use social media to inform potential clients, or anyone just curious about local real estate, that they’ll be there and available to answer any questions. Agents use the hashtag #corespotting, plus monthly giveaways snd competitions, to get the community engaged. 

“The point is to put ourselves out in the community where people feel comfortable,” Barker says. “We’re not trying to sell you a house, we just want to make ourselves available and answer questions about the real estate process.”

Increasingly, flexible working spaces—whether a historic home, a coffee shop or coworking space—look, for many of today’s workers, like the future of work. 

“We’re trying to lower the barrier of entry to starting a business or growing a business,” says HQ’s Porta. “I don’t think it’s going to go back to people wanting to buy their own dish soap and manage their own Internet contracts.”

But for Porta and the other business owners, it’s also about a higher purpose: treating workers right, caring about their mental health and giving them options. 

Clairemont’s Phelps says she is happy to have full bathrooms onsite so if her employees want to go for a run or a bike ride in the middle of the day, they can come back to work and take a shower. They can walk to downtown’s great restaurants, shops and cafés when they need a break, or escape to a quiet corner upstairs or on the porch. And by renting out space to other businesses and on Airbnb, Phelps says she can afford to pay her workers more. 

“It’s good to have the options,” she says. 

In its new location in Gateway Plaza, slated to open in September, HQ is striving to serve the local community and attracting more “Main Street” companies—including mom and pop shops and companies exploring retail or food truck spaces—that are working on business plans or may not yet have the capital to open something more permanent. And a drop-in daycare, Little Makers Academy, will open in the same shopping center. Porta is pleased about being able to offer a childcare option to the company’s young parents for the first time. 

“They can drop their kids off, or maybe they’re a breastfeeding mom—they can literally breastfeed onsite,” Porta says. “We’re a young, female staff at HQ and we want this for our members. It’s part of our B Corp. values and we are really, really excited about it.”


Is Co-Working Cut Out For You?

A look at Raleigh’s coworking spaces and what they have to offer.

Coworking SpaceLocationRatesDrop In?When OpenedPerks
HQ RaleighMultiple$95-$285/monthNo2012Jubala coffee, Lonerider beers, access to NCSU Entrepreneurship Clinic & great tech
NestFayetteville Street$25-$300/monthNo2016Swings in the communal space, full kitchen, coffee & beer on tap
Industrious Midtown &
Downtown
$374-$2,741/monthNo2015Wellness rooms, member events & parties, café stocked with local Raleigh treats
Loading DockMidtown $75-$900/monthNo2015Ideal for freelancers/entreprenuers/creatives & you can bring your dog!
American
Underground
Fayetteville Street$199-$249/monthNo2014Focus on startups support; one of only 11 Google for Startup hubs in North America
WeWorkGlenwood South$350-$10,700/monthNoSummer 2019Beautiful spaces, wellness sessions & lifestyle perks from big name partners
The FrontierRTPFree-$400+/monthYes2015Free drop-in workspace when you reserve ahead online
The Pink CeilingMidtown $400+/monthNo2016Billionaire founder Cindy Whitehead’s goal is to make other women rich
RegusMultipleVariesYes2017Business lounge where you can work remotely from any location worldwide
Intelligent OfficeFayetteville StreetStarting $5/dayNo201524/7 secure access & a personal business concierge
LocalityWarehouse District $195/monthNoSummer 2019Access to business classes & networking socials for women entrepreneurs
SpacesWarehouse District $239-$623/monthNo2018Access to all locations worldwide; Business Club dedicated to networking & collaboration

The Four Best Places to Work Remotely

Co-working spaces are great but they can be costly, and there are only so 
many cups of coffee you can drink. Take your work to where the WiFi is free. 

Hunt Library
Hunt Library

Hunt Library

1070 Partners Way

Perfect for: The networker

Perks: The cool architecture, fun furnishings and quiet summer hours are ideal for beavering away. Pro tip: Make sure you’ve got a VPN service to use on NCSU Guest WiFi. 

Cons: Students need workspaces, too, and NC State’s got 34,000 of ‘em; mind the crowd.

The NC Museum of Art 

2110 Blue Ridge Rd.

Perfect for: The freelance creative

Perks: Between the museum’s sprawling park and its esteemed permanent collection, few places in Raleigh are more inspiring. The museum’s Art Reference Library is open to the public Tuesdays through Fridays, from 10 a.m. to 4 p.m.

Cons: You’ll definitely want to spend the day wandering the exhibits rather than working.

Level 7 

101 Park at North Hills St.

Perfect for: The aspiring author of the next great American novel

Perks: The plush lounge and rooftop patio offer soaring views of the city and are typically quiet during daytime hours. You don’t have to be a guest at the hotel to go and get some work done.

Cons: Come 5 p.m. there’s no way you’ll be able to turn down a tasty cocktail. It’s easy to go full Hemingway and keep sipping on in to the beautiful sunset. 

Go Raleigh 

214 S. Blount St.

Perfect for: The vacation needer or inspiration seeker

Perks: You may not go far but at least you’ll go somewhere! For the cost of a ticket, take a ride around on one of the city’s many GoRaleigh buses, all of which are outfitted with free WiFi. Take in the sights, meet interesting people. Or hunker down and get ‘er done. 

Cons: Motion sickness, anyone? Grab the Dramamine (hey, at least you’re not at sea).

Raleigh at Work: The Local Job Market

Raleigh at Work: The Local Job Market

 Numbers don’t lie.

Raleigh’s got a lot of them when it comes to the local job market, and they all look pretty good.

#1 Best City for Jobs, Glassdoor, May 2015

#2 City Creating the Most Technology Jobs in 2015, Forbes, April 2015

#2 Best City to Work for a Small Business, WalletHub, May 2015

#5 Most Pro-Business City in America, Market Watch, May 2015

However, behind each of these statistics is a face, a name, a person—one of the many people pushing this once sleepy state capital into national prominence as a thriving hub of technology, banking and higher education.

 A story about jobs is a story about them. And there are a lot of “them.”

Raleigh’s population is swelling. Wake County counted its millionth person in August 2014, growing from an estimated 901,000 in 2010. Wake County is expected to double its population by 2030 to almost 2 million.

 

Beau O’BrienO'Brien_Beau

(Had never heard of Raleigh)

Twenty-four-year old Beau O’Brien sheepishly admits he had never heard of Raleigh until a Boston-based financial services company offered him a job here. He took the systems engineer job and headed south from his hometown in rural Connecticut, knowing little about the region.

He quickly fell in love with the area, taking up rifle shooting, enjoying the city’s burgeoning nightlife and reveling in the comfortable lifestyle even a recent graduate could afford in Raleigh. He rents a one-bedroom apartment in the Brier Creek area by himself, a feat almost impossible in many urban areas, he said. Indeed, Raleigh-Durham’s cost of living rates below many other Southern metros, such as Atlanta, Austin, Charlotte and Richmond, according to ACCRA Cost of Living Annual Average Data, compiled by the Council for Community and Economic Research.

Also, he likes that his field, technology, is still growing in the area. “For my field (job opportunities) are a lot bigger than what I would have found around Connecticut.”

Tech jobs have dominated the employment scene since IBM opened a large facility at Research Triangle Park in the 1960s. IBM is still one of Wake County’s biggest employers, with 10,000 employees. SAS Institute, another tech giant, employs more than 5,000.

Michael Walden, an economics professor at N.C. State University, predicts that tech jobs will remain at the forefront of Raleigh’s economy, though he sees the local industry’s specialization shifting from technology hardware to virtual, nano and biomedical technology.

Walden also envisions the continued growth of a financial services in Raleigh, something he didn’t anticipate.

“The growth of the financial sector has been a bit surprising,” he said.

But the area’s multitude of recent graduates continues to draw financial firms. Walden pointed to the MBA and economics programs at N.C. State University as well the MAC (Master of Accounting program) at the UNC Kenan-Flagler Business School at UNC-Chapel Hill.

 

JDB_9208Debbi Knaus

(More traffic, but more to do)

Debbi Knaus is another techie transplant, just an earlier one. The New Jerseyite moved down in the 1990s, right after college to take a job as a technical writer at IBM. She liked IBM’s bucolic campus setting and the slow pace of life in Raleigh-Durham.

Times have changed.

The population increase puts pressure on the area’s infrastructure, straining the local school system, something the single mother of school-aged children worries about. Then there’s the traffic. “The traffic is getting worse every year,” she said, noting that she thinks the toll road on western 540—put in place to help alleviate traffic—is too expensive.

But the growth has also enlivened Raleigh’s entertainment options, which Knaus appreciates. Now working as an analyst at SAS, she lives within walking distance of some of downtown Raleigh’s hottest spots—Buku, The Rockford, The Raleigh Times. The Oakwood neighborhood she calls home—in an 1894 Victorian—was still frequented by prostitutes when she moved in 15 years ago, but now, like much of downtown Raleigh, it’s decidedly more up-and-coming.

A slew of condo projects and the moves of big companies like Citrix and Red Hat to downtown in the last decade have encouraged other businesses, such as smaller start-ups, to set up shop.

 

Young_Jim2Jim Young

(Where was this stuff in the 90s?)

HQ Raleigh, a co-working space that occupies a 15,000-square-foot refurbished warehouse in downtown’s Warehouse District, is nourishing those start-ups.

“I wish what’s going on right now was going on in 1990,” Young said on a recent weekday, inside the small office space he rents at HQ. He knew he wanted to run his business BernieSez, a website that connects clients to attorneys, downtown because of the proximity to restaurants and other attractions. He chose HQ because of the space’s collaborative nature. Young was a student at Duke University in the 1990s and remembers downtown Raleigh at that time as being dead and boring. He likes the changes that he sees and the opportunities that a vibrant downtown offers his business.

Currently, 107 companies, the majority of them tech-based, operate in HQ’s space, either renting private spaces or the building’s communal areas. HQ has been in the space since March 2014 and already has plans for a 40,000- to 50,000-square-foot expansion into a nearby building in the next 18 months, said Allyson Sutton, HQ Raleigh’s director of marketing.

HQ represents a new trend nationally and locally in employment—co-working spaces that offer start-ups and small businesses low overhead, networking opportunities and business guidance. It’s a new idea that RTP is also embracing.

 

Geolas_128Bob Geolas

(All about collaboration)

RTP put Raleigh-Durham on the economic map. When local leaders created the 7,000-acre research park straddling Wake and Durham counties in the 1950s, they shifted the struggling

Early RTP planning in 1958.

Early RTP planning in 1958.

area’s economy from manufacturing jobs and hardscrabble farms to a modern, intellectually-based economy. But that was the past, and Bob Geolas, president and CEO of the Research Triangle Foundation, is always gunning to keep RTP relevant. He thinks the Frontier will help do that. Now open, the Frontier is a co-working space that is the first step in the Park Center, a mixed-use development that will occupy a 100-acre parcel of land at the heart of RTP. It marks the first redevelopment in RTP’s history. Much like HQ, Frontier and Park Center will focus on creating collaboration.

“It’s always been important that research parks have collaboration. What’s changed is how people collaborate,” Geolas said.

Current RTP aerial shot.

Current RTP aerial shot.

Recently at RTP, Cisco announced plans to create 550 new jobs in North Carolina by the end of 2017. In not-so-great news, GlaxoSmithKline announced eliminating approximately 900 jobs in RTP throughout 2015.

But Walden cautioned that even numbers like that weren’t all doom and gloom.

“Economies change; businesses rise and fall,” he said.

What’s important is how an area responds to the changes, and the Raleigh area has always been good at that.

—Beth Hatcher

Who works where? Wake County’s Top 15 employers

Wake County Major Employers and the number of their employees.

State of North Carolina     24,083

Wake County Public School System     18,554

IBM Corporation     10,000

WakeMed Health & Hospitals     8,422

North Carolina State University     7,876

Cisco Systems, Inc.     5,500

Rex Healthcare     5,300

SAS Institute, Inc.     5,232

GlaxoSmithKline     4,950

N.C. DHHS     3,800

Duke Energy    3,700

Wake County Government     3,692

City of Raleigh    3,673

Fidelity Investments     2,900

Wake Technical Community College     2,547

Source: Wake County Economic Development

 


Check out our other stories in the “Raleigh at Work” series: “Who’s hiring, who’s not” and “Cool jobs”.