Parexel's lease last year to move its headquarters to Raleigh, North Carolina, from Durham exemplified the national push by companies to upgrade their offices to better attract and retain talent while providing a rare win in a Raleigh office market where vacancy is at its highest point in two decades.
In recognition, the deal earned a 2025 CoStar Impact Award for lease of the year, as selected by an independent panel of local industry professionals.
Parexel is one of the world's largest clinical research organizations, providing clinical development services to help lifesaving treatments reach patients faster.
After getting incentives from the state to move part of its headquarters from Massachusetts to Durham in 2019, the global biopharmaceutical company reached a deal in September to shift its head offices to Tower 5 in the North Hills Innovation District in midtown Raleigh.
Kane Realty Corp. completed the 17-story Tower 5 building last year as part of the new 33-acre district that features office space, 1,500 apartments and 60,000 square feet of street-level retail. The district itself is part of the larger North Hills area that features 2 million square feet of Class A office space, 1.2 million square feet of retail space, more than 3,000 apartments and 500 hotel rooms.
“This move aligns with our commitment to providing flexible and adaptable workspaces designed to align with how our colleagues work today," Parexel CEO Peyton Howell said at the time of the deal. "With thoughtfully designed areas and surrounding amenities, our new headquarters will prioritize our employees’ well-being while maximizing opportunities for productivity and collaboration so that our colleagues can do their best work in the development of critical new therapies for patients.”
In addition to access to trophy office space and amenities, the deal keeps Parexel in the Research Triangle, one of the top life sciences markets in the country.
About the deal: Parexel's lease is for 61,076 square feet across two floors at Tower 5. The deal was the fifth-largest new office lease signed in the market in 2024, according to CoStar data.
What the judges said: "Securing a long-term credit tenant in a challenging office market is a promising indicator for the future of both the office sector and our region," said Ginny Hager, leasing representative at Highwoods Properties. "As the Triangle strengthens its position as a national hub for Life Sciences, having a major player like Parexel make a long-term commitment to the area is a significant milestone."
They made it happen: Kane Realty's Hooker Manning, managing director of office leasing, and Alex Mikels, office leasing representative, brokered the deal for the landlord in-house. Doug Brock, office leasing representative with Newmark, represented Parexel.