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STWArEGY 5 <br />7.3 Surplus <br />83 <br />By definition (un- leased space inventory) there is a current (spring 2010) surplus of <br />approximately 300,000 square feet of office space in Chapel Hill. <br />7.4 Net Supportable Square Footage Discussion <br />Based on the various economic and market perspectives advanced in this report; the <br />Town of Chapel Hill proactively seeking to maintain and increase it's competitive <br />advantages over market rivals; its ability to foster a development environment that further <br />encourages office growth; and, a strategy of capturing demand from "foreign" markets; <br />Strategy 5 projects that the local market can support the introduction of an additional 1 <br />million square feet of office space over the 5 -10 years. This is roughly consistent with <br />combining current vacant space inventories (300,000 square feet) with planned projects, <br />leaving about 300,000 additional square feet of "net supportable" space to be conceived, <br />located, built and occupied during this period. Numerous factors will determine whether <br />this space ultimately falls into the surplus category, or the opportunity gap category, and <br />for how long. <br />As a further illustration that may put these numbers in context is as follows: <br />If the average amount of leased space in Chapel Hill remains at about 20,000 square feet, <br />the 1 million square feet of additional space equates with about 50 companies being <br />attracted to Chapel Hill over the development/absorption period (5 -10 years); or, between <br />roughly 3 and 5 new tenants per year. <br />40 <br />