Baltimore commercial real estate developer expands into Research Triangle

Another out-of-state real estate developer is setting up an outpost in the Triangle.

Baltimore-based St. John Properties says it’s expanding with a new regional office in Raleigh, its 10th office nationwide. It’s currently searching for what it calls strategic sites throughout the Research Triangle to develop Class A commercial developments. That includes single-story, mid-rise office and retail buildings, as well as part office/part industrial configurations. The aim is to appeal to high-tech companies, light manufacturing and distribution centers, and “everything in between,” the company says.

“We believe this region is poised for long-term growth,” said Lawrence Maykrantz, president and CEO of St. John Properties, pointing to economic drivers such as the Triangle’s expanding research and life sciences industries.

“We plan to immediately analyze all land acquisition opportunities.”

The firm’s expansion is another sign that the Triangle’s commercial real estate market is continuing to boom. Despite strong economic headwinds with rising inflation, higher interest rates and the trend toward remote work, construction in the region has accelerated, growing 6% over the last two years, according to recent construction market analysis by international construction consulting firm Cumming.

The uptick is attracting developers from around the country.

Earlier this month, for example, Granite Canyon Partners based in Washington, D.C., purchased the Greenwood Commons shopping center in Durham for an undisclosed sum, its first deal in North Carolina. Meanwhile, Atlanta-based real estate investment company The Simpson Organization paid $27.8 million for The Situs Office Park in west Raleigh in June.

St. John Properties, founded in 1971, has a real estate portfolio valued at roughly $4.5 billion. Over the next 15 years, it said it intends to nearly double its size, with a sizable chunk potentially based in the Triangle.

“We intend to make our presence [here] immediately felt,” said Dustin Atkielski, the firm’s regional partner who will lead the day-to-day operations at the Raleigh office.

“St. John Properties is a long-term holder of commercial real estate, and we will work diligently to be a great partner that makes a meaningful and positive difference in North Carolina.”