With nearly all of its 2.1 million square feet currently occupied, Innovation Quarter in downtown Winston-Salem is set to embark on its second phase.
Monday morning, the Innovation Quarter officials unveiled a master plan for 1 million square feet new office, clinical and lab space and 15 acres of urban space covering 28 acres along both sides of Research Parkway south of the initial phase.
Unlike the first phase comprised largely of repurposed buildings of formerly R.J. Reynolds tobacco manufacturing plants, Phase II will be all new construction. Ten buildings in all are proposed, featuring similar mixed uses and ground-level activation found in the existing district.
The new phase is centered on Fogle Commons — a linear park designed to host larger-scale activities such as musical and arts performances, academic and corporate events, and casual play or recreation. The green space will serve to extend the Long Branch Trail by almost one-half mile, connecting it with the Third Street bridge.
“We've had success with our initial phase one of the northern district in terms of its development, and it's now time for us to proceed in the southerly fashion,” said Graydon Pleasants, Innovation Quarter’s head of development. “Each of these buildings will have ground floor activity space that could be retail or other space. … All of the buildings will have a place that feels open and welcoming.”
Even before beginning development, IQ2 has a significant occupant. Wake Forest Baptist Health and Atrium Health previously announced they would build an eye institute there, projecting it would serve about 90,000 patients per year. No details about the building have been announced.
The master plan for IQ2 calls for 10 buildings, 2.7 million gross square feet of which about one million square feet will be clinical lab or office, 450 residential units and approximately 30,000 feet of that ground floor space. Innovation Quarter currently has 4.7 million gross square feet, including parking structures and residential along with about 2.1 million square feet of office, clinical and lab space.
Innovation Quarter anticipates Wexford Science + Technology, a major partner in Phase I and a global leader in developing communities that drive innovation, to play a major role in the final design and development of Phase II. The IQ partnered with global design firm Perkins and Will to develop and design the master plan. As with the first phase, a strong public-private partnership with government agencies at the federal, state and local levels will be key to the next phase of development.
“For over 20 years, Innovation Quarter has lead the way in creating integrated spaces that foster collaboration and creativity,” said Eugene Woods, president and CEO of Atrium Health. “This new phase of development continues that effort in a way that will allow Atrium Health and Wake Forest School of Medicine to build upon our scientific and innovation capabilities in a rich, blended environment, while creating new connections and partnerships.”
Since 2010, Innovation Quarter has partnered with Wexford Science + Technology to transform this section of downtown Winston-Salem into a thriving innovation district. Wexford brings expertise in developing what it calls “knowledge communities” that feature major research anchor institutions like the Wake Forest School of Medicine to help spur collaboration.
“Innovation Quarter has become one of the foremost examples of how to create a comprehensive sense of place that integrates university research, academics, entrepreneurial activity, corporate engagement, workforce development and community inclusion,” said Thomas Osha, Wexford senior vice president, innovation and economic development. “We look forward to continuing our partnership with Innovation Quarter and Wake Forest University and expanding this globally recognized innovation district.”
No additional potential occupants or specific building plans have been announced. The site stands between Third Street and Salem Parkway, abutting the northwest quadrant of the interchange of Salem Parkway and U.S. 52.
Pleasants said there is no pre-planned order for the development. Rather, IQ2 will develop as the market demands.
“In a perfect world we would do them sequentially, and the eye institute will be the lead,” he said. “Before that will be a significant amount of infrastructure work, and probably my guess would be — and these are guesses because it depends on how all this stuff evolves — but perhaps some of the residential would follow and then probably office or lab.”
Development is expected to begin in 2022.
Meanwhile, space is becoming available in the existing district. In May, Inmar Intelligence Chairman and CEO David Mounts told Triad Business Journal the company, and its 1,000 Triad employees, would leave its 170,000-square-foot space in Innovation Quarter and move a few blocks west to the One West Fourth building in downtown.
Pleasants said the move is opening prime office space, and IQ has already received inquiries.
“They're leaving his iconic building, and we have already had folks inquiring about it,” he said. “We're excited about the opportunities that it's presenting and are already actively working with folks to fill that space.”
