Merritt Properties continues to add considerable space to Wake Forest’s flex space inventory. Last year, the company opened the first phase of its Merritt Capital Business Park on a 74-acre property between Ligon Mill Road and Capital Boulevard. Working with Colliers International and other partners, the firm now has all but about 6,000 square feet of its first two buildings leased – or about 95 percent.
It’s now on to Phase II, according to Keith Wallace, Regional Director of the Baltimore-based company. “We’re 32 percent pre-leased on Phase II, with a lot of activity,” Wallace says. Among the tenants set to utilize Phase II is the Town of Wake Forest itself, which has leased 22,000 square feet that will consolidate the Town’s police operations under one roof. A commercial printing business and residential plumbing supplier also are among the tenants set to occupy Phase II, occupying 1,800 and 18,000 square feet of space, respectively.
Phase II, comprised of two buildings and set for completion this month, is comparable in size to the park’s first phase, spanning 135,000 total square feet.
Founded in 1967, Merritt Properties is a commercial real estate company with more than 21 million square-feet of Class A office, flex, warehouse, industrial, retail, and build-to-suit space from Maryland to Florida. The privately-held company provides property development, management, financing, and leasing services to its clients. The National Association of Industrial and Office Properties (NAIOP), Associated Builders & Contractors (ABC), and the Better Business Bureau are among the entities that have recognized Merritt Properties for the quality of its expertise and operations.
As soon as Phase II is operational, Wallace and his colleagues will begin turning their attention to the park’s final phase, which is expected to encompass another 140,000 square feet of flex space. “We’re not on to Phase III just yet, but we’re close – as soon as we’re 70 percent leased on Phase II,” he says.
Drawn to the Town’s quiet sophistication, Wallace moved his family to Wake Forest from northern Virginia in 2020, about a year after his initial visit here. Outdoor amenities such as Falls Lake also appealed to him. Merritt Capital Business Park, an $80 million investment that will ultimately span 452,000 square feet of space across six buildings, is among several properties the company is developing in the Triangle. Within the region, the company likes Wake Forest’s convenience, population growth, and business-savvy leadership.
Wallace says support from the Town, including the Wake Forest Business & Industry Partnership (WFBIP), has helped facilitate the success of Merritt’s investment. “They’re just always there to help – and to help us promote,” Wallace says. “Jason and his team have been nothing but welcoming. That’s their nature.”
Flex space properties are usually single-story buildings zoned for light industrial. But their design allows for configuration for a range of uses, including assembly, warehouse, offices, and customer showrooms. Merritt tenants, for example, occupy both small and large suites. Most display their company signage outside the building. The buildings include large loading docks and come with ample parking for customers and employees.
Users of flex space tend to be smaller, more localized businesses seeking flexibility, convenience, and affordability. “They can run the gamut,” says Elizabeth Gates, Senior Research Analyst at CBRE | Raleigh.
Construction-related companies and suppliers are often drawn to such properties. But feverish growth of the Triangle’s biotech industry in recent years has spurred commercial real estate companies to re-develop flex space for use as R&D labs, constraining the region’s inventory of flex space, says Gates, whose company closely tracks commercial and industrial real estate trends. “Some flex space has been re-purposed for life sciences, creating a tighter market for flex space,” she says. Gates believes Merritt’s interest in Wake Forest makes obvious sense. “There’s so much growth in that area,” she says. “It’s a pretty logical location.”
Jason Cannon, President of the Wake Forest Business & Industry Partnership (WFBIP), believes Merritt Properties is a good culture fit for Wake Forest. “Their values as a business align closely with our values as a community,” Cannon says. “We look forward to partnering with Keith and his colleagues at Merritt well after the finishing touches are complete on Merritt Capital Business Park. This is a high-quality company whose vision and reputation are already making a big difference for our local economy and business community.”
