North Hills Innovation District lands first pharmaceutical tenant in Parexel

Clinical research company Parexel is moving its headquarters from Durham to a new tower in Kane Realty's North Hills Innovation District in Raleigh.

Why it matters: The 61,000-square-foot lease is the first office tenant signed so far at Tower 5, which is expected to open later this year.

• It comes at a time when Raleigh's office market has struggled with a move toward remote work.

Driving the news: Parexel is one of the largest clinical research organizations in the country and moved part of its headquarters to Durham from Massachusetts in 2019 after getting incentives from the state .

Zoom in: Parexel has nearly 300 employees in the Triangle, according to the Triangle Business Journal. The Triangle is a hotbed for clinical research organizations, including firms like IQVIA, RTI International, Syneos Health and BioAgilytix.

• Parexel was acquired by a private equity firm and Goldman Sachs for $8.5 billion in 2021.

The big picture: Kane Realty has invested heavily in wooing more pharmaceutical and biotech companies to North Hills, investing $1 billion into building the 17-story Tower 5, 1,500 apartments and retail spaces.

• Retail tenants already signed include Standard Beer + Food , Dose Yoga + Smoothie Bar , and Good Graces .

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