The expansion of the North Hills Main District that has been in the making for more than two decades took its next step with the opening of the latest phase of the mixed-use development, expanding the sprawling commercial hub while providing a vote of confidence to a still-sluggish office market with the signing of some of the market's highest-profile deals of the year.
In recognition, the North Hills Main District expansion earned a 2025 CoStar Impact Award for redevelopment of the year for Raleigh-Durham, as judged by a panel of industry professionals.
Project developer Kane Realty demolished a J.C. Penney department store and associated parking deck to carve out the next phase of the North Hills Main District, an expansion project that included the development of hundreds of thousands of square feet of high-end offices, apartments and retail space.
The commercial heartbeat of midtown Raleigh, the North Hills redevelopment originally launched in 2004 on the former site of the North Hills Mall, an enclosed mall that opened in 1967 as the first two-story indoor mall between Washington, D.C., and Atlanta.
The redevelopment transformed the area into an epicenter of commercial activity, with the site including 2 million square feet of office space, 1.2 million square feet of retail space, more than 3,000 apartments and 500 hotel rooms.
Designed during the pandemic, the expansion has contributed to the region's economic vitality through thoughtful urban redevelopment and strategic density creation. By transforming underutilized parking areas into a vibrant mixed-use development, the project has generated substantial economic benefits in multiple ways including major corporate investments, creating hundreds of high-quality jobs.
Some of the Triangle area's highest-profile office leases in 2024 were in buildings developed as part of the North Hills Main District expansion project, despite the market's generally tepid office demand. Clinical research organization Parexel leased 61,000 square feet in Tower 5 in North Hills in September, and medical staffing company Weatherby Healthcare finalized a 46,300-square-foot lease in the One North Hills Tower in October.
Additionally, new company Ralliant said it will establish its corporate offices in the North Hills area, where it expects to create 180 jobs, though an exact location has not yet been disclosed.
The integration of office spaces, apartments, restaurants and retail establishments has generated increased foot traffic and consumer spending in Raleigh's Midtown area. The arrival of prominent businesses such as RH Gallery, True Food Kitchen, Village Tavern, Madewell, J.Crew and Ruth's Chris has also further diversified employment opportunities while enhancing the area's retail and dining options.
About the project: The North Hills Main District expansion includes the 12-story, 287-unit Highland North Hills apartment building, the 10-story, 266,000-square-foot One North Hills Tower office building and the five-story, 80,800-square-foot 4114 Center at North Hills office building, which also includes a concierge center in the lobby.
The expansion, designed during the pandemic, focuses heavily on outdoor space with a half-acre public plaza, outdoor dining options, large-scale balconies at Highland North Hills and a wellness-focused office tower with a public outdoor terrace and outdoor working and gathering options for office tenants.
Additional components include 100,000 square feet of retail space, more than 1,000 parking spaces, and outdoor gathering spaces across the new development, including an active public plaza, outdoor event space and connected outdoor work areas.
One North Hills tower also features an original mural by Raleigh native artist Nikelle Orellana-Reyes.
What the judges said: "North Hills continually evolves to meet the changing needs of market demands, while providing a great mix of office, residential and retail opportunities," said Shelley Bhatia, senior vice president at TradeMark Properties.
They made it happen: Warner Kuppin, chief development officer at Kane Realty Corp.