Open Source: Apple is spending big on two temporary offices in the NC Triangle
I’m Brian Gordon, tech reporter for The News & Observer, and this is Open Source, a weekly newsletter on business, labor and technology in North Carolina.
Last week, I wrote about Apple’s noticeably slow approach to constructing a main campus in Research Triangle Park. But as we wait for the company to break ground, Apple has already invested in a pair of smaller, (perhaps) temporary offices.
One is a building on MetLife’s Global Technology Campus in Cary. The other is a four-story, 139,000-square-foot building near the RDU airport in Durham. While no signage or public documents tie this second site to Apple, two local real estate sources familiar with the building confirmed the tech giant is the tenant.
This isn’t breaking news — the Triangle Business Journal wrote about the lease (also citing off-record sources) in August 2022. Still, neither the company nor the site management firm will say that Apple is the tenant — which fits with Apple’s general way of doing business.
Set off Slater Road, the office was previously occupied by the Massachusetts-based biotech company Biogen. No Apple employees seem to be working there yet; large clear windows reveal extensive interior renovations are still being completed.
This is not the massive headline-grabbing campus that was promised. In April 2021, Apple announced it would bring at least 3,000 jobs to a new 1-million-square-foot site on the Wake County side of the park.
It should be interesting to track how Apple uses its MetLife and Slater Road locations in the next few years.
The company has poured money into both. In April 2022, WRAL TechWire reported Apple would spend around $19.3 million to upgrade its seven-story MetLife building. I don’t know the price tag on the renovations in Durham, but it looked like a full-scale project was happening when I drove by the site this week.
Temporary offices will count toward the hiring and investment goals contained in Apple’s state incentive agreement, says N.C. Commerce Department spokesperson David Rhoades.
Per the deal, Apple must spend a minimum of around $500 million “in real property construction and/or improvements in Wake County” by the end of 2031. To get its full tax benefits, Apple has to invest at least $552 million locally (in addition to hitting annual hiring targets).
“We knew at the time the company submitted their grant application that they would be using temporary office space in the Triangle area while the campus was being built,” Rhoades said in an email. “So that fact is accounted for in how we’ll measure their job and investment obligations under the grant.”
So investments in smaller offices can go toward the $552 million goal. Do Apple’s current renovations signal less money might later go toward a single major campus in RTP? Time will tell, but Apple can certainly afford to do both.
Onto the rest of this week’s news
Tillis says don’t hate the player, hate the game
There’s one way North Carolina might stop awarding corporate incentives, according to Sen. Thom Tillis.
“If we could unilaterally get every state to stand down and not provide incentives, then I don’t think we’d have to play the incentives game in North Carolina,” he said during a virtual interview at this week’s NC IDEA Summit in Raleigh.
This won’t happen anytime soon, Tillis acknowledged, pointing out that other Southern states like Alabama and Texas are some of the most aggressive when it comes to using taxpayer dollars to attract businesses.
Citrix closes chapter, Advance Auto confirms cuts
On Tuesday, North Carolina officially scrapped a 2016 agreement with the cloud computing provider Citrix to add 400 jobs in Raleigh. Citrix could have received more than $5 million in tax benefits. Instead, it got no state dollars from the deal.
Incentives also drew Advance Auto Parts to relocate to Raleigh in 2018. That deal was also terminated early, and this week, the company announced layoffs impacting around 400 positions — including some at its headquarters in Raleigh’s North Hills neighborhood.
Another week, another NC lithium-ion battery plant
This week, the state approved an incentive deal for the Colorado-based company Forge Nano to bring a lithium-ion battery plant to Morrisville. The facility is slated to add more than 200 jobs and joins a list of new North Carolina lithium-based projects.
Short Stuff: Find the nearest VinFast dealership
I broke down the Epic Games v. Google antitrust trial, including how it differs from Epic’s case against Apple (sideloading! jury verdict!!) and why some believe the Cary-based creator of Fortnite has a better shot at winning this one. Google’s CEO took the stand earlier this week. Epic’s CEO Tim Sweeney could testify soon.
VinFast says it’ll distribute cars from U.S. dealerships. Track which dealers here (though it’s only California stores for now).
Boom Supersonic, which is building at the Greensboro airport, secured significant funding from a Saudi Arabian firm.
National Spinning, a yarn materials company, is laying off 100 workers in Columbus County, Business North Carolina reports.
Unionized REI workers, including at its Durham store, charged their employer with unfair labor practices for allegedly bargaining in bad faith.
National Tech Happenings
As big companies cut back, the government is now the “hottest tech employer in town,” according to Wired.
Meta says you can now delete your Threads account without losing your Instagram.
Epic Games isn’t Google’s only antitrust opponent. The U.S. Department of Justice is accusing the internet search engine giant of using illegal tactics to retain its monopoly in search. The trial continued this week. Closing arguments are scheduled for May. The judge said he has “no idea” how he’ll rule.
Thanks for reading. This newsletter will be on a break next week for the holiday and will return later this month. Have a great Thanksgiving!
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