It took more than four years to fill much of the void Wells Fargo left at One Fourth West when it moved out. And then, the void only moved to another area of downtown Winston-Salem.
But One West Fourth, the Triad's second-largest office building, a Class A facility built in 2002, and its surrounding area may have needed Inmar Intelligence more than Innovation Quarter did. Less than two weeks ago, Inmar Intelligence announced it would take 170,000 square feet at One Fourth West, ending its stay at Innovation Quarter. Inmar plans to move into the new space around May 2022.
"It's a total game changer for the building," Alex Roth, the asset manager for owner Nightingale Properties, told Triad Business Journal.
With Inmar, Roth said the 431,781-square-foot One West Fourth will be more than 60% occupied.
In late 2016, One West Fourth fell into special servicing on its mortgage when Wells Fargo left to fill some available space the company owned, dropping the 13-story building's occupancy below 30 percent.
Then, less than two months ago, law firm Womble Bond Dickinson signed a new lease cutting its space at One West Fourth from about 92,000 square feet to less than 54,000 square feet.
"For the building, it's refreshing reminder that we have a premium Class A building in downtown Winston-Salem," Roth said. "We always believed in the building and Winston-Salem. We knew it was just a matter of time. We needed to find a user who could see the value in being in that type of building."
Roth said Inmar's move created some momentum for the building, and that he expects to announce more new tenants in the coming months.
Since the loss of Wells Fargo, Nightingale Properties never expressed worries -- not publicly, anyway.
"Obviously, it's going to take time to backfill," Roth told TBJ in 2018. "We believe we have the best building in the market. We're in a city where there's been a resurgence in downtown. We're committed to the building and to Winston-Salem."
The influx of Inmar employees should help restaurants and retail affected by the building's low occupancy,.
"Obviously, we're excited about the prospects," said Lee Charleville, co-owner of Downtown Deli and Cafe, which is on the first floor of the building.
Charleville said the deli's 8 a.m. to 3 p.m. hours on weekdays are tailor made for office workers.
Another major benefactor could be the Kimpton Cardinal Hotel, about a block away. The Cardinal, financed by commercial mortgage backed securities (CMBS), was watch-listed last year after the arrival of Covid-19 shut down business travel. Triad Business Journal was unable to reach Cardinal general manager Kelly Brown Monday afternoon. Plus, 240 units are under construction at Links Apartments 4th Street at 500 W. Fifth St.
In 2023, Truist is scheduled to leave space at 200 W. Second St. downtown, moving employees to two locations on Stratford Road.
If there's a section of downtown Winston-Salem best suited to rebound quickly from a major tenant loss, it's Innovation Quarter, a dynamic and rapidly growing area with jobs, housing, restaurants and retail.
With Wake Forest Baptist Medical Center and a variety of medical and tech tenants, Innovation Quarter is an attractive site for cutting-edge companies.
Plus, the former R.J. Reynolds campus has become a popular place to live for professionals, many of whom can walk to work. According to Innovation Quarter's website, the quarter has more than 1,000 residents, most in apartments such as the 344-unit Link Apartments Innovation Quarter built in 2019 at North 5th and Patterson streets. Links' developer, Grubb Properties, has Link Apartments 4th Street under construction near One West Fourth.
And the area also boasts many lifestyle amenities, including access to the Salem Lake Greenway. Bailey Power Plant, which opened in 2019, also has an assortment of restaurants and Incendiary Brewing Co. with a spacious courtyard in a former coal bin. The newer Bailey South will have an assortment of restaurants and retail.
In a written statement, Graydon Pleasants, head of development for Innovation Quarter, told TBJ that "constant change" is part of the reality of an innovation district.
“Since 2014, Inmar has been an integral part of the Innovation Quarter. Their growth and impact during that time period has been impressive. As we all know, the COVID-19 pandemic continues to dramatically shift how companies operate and employees work, which has direct implications on their physical footprint needs," the statement began.
"Innovation districts are founded on the reality of constant change and the ability to evolve. As we have adapted to the new realities of the marketplace over the past year, we are constantly re-imagining the use of space and placemaking to maximize collaboration in a rapidly transforming digital world. Inmar’s former space provide us the opportunity to attract other companies to grow and engage in that work. Inmar’s commitment to remaining in Winston-Salem allows us to continue working together to build a better innovation ecosystem.”
