Wilmington City Council Greenlights Major Leases at Skyline Center and 115 N. Third Street

Wilmington, NC — Wilmington City Council has approved four significant new leases in city-owned office properties, including two at Skyline Center and two in the nearby 115 N. Third Street building—events that mark a major shift in investor and tenant confidence for downtown commercial real estate.

Key Leases Driving Notable Urban Redevelopment

Synply Inc., a fintech spin-off from Live Oak Bank, will lease just over 1,200 sq ft on the fourth floor of Skyline Center. The initial four-year term—with a three-year renewal options—starts at approximately $47,400/year, escalating annually.

U.S. Senator Tedd Budd will occupy a constituent services office of ~1,200 sq ft in the same building, under a 37‑month lease priced around $48,000/year.

In the building at 115 N. Third Street, Avcon Engineers & Planners Inc. will take ~1,200 sq ft for five years (with renewal options) at an initial annual rate near $41,000, escalating 3% yearly.

Beacon Bridge–Wilmington LLC, a mental health care provider, signed a five-year lease for ~800 sq ft at roughly $27,000/year, with a two-year renewal option.

Why These Leases Matter to Investors

Institutional Tenants Signal Long-Term Stability

Synply’s four-year commitment and Senator Budd’s office presence bring diversified tenant profiles aligned with stronger lease security in city-owned CRE. These anchor agreements offer proof of concept for future multi-tenant repositioning.

Tightening Inventory and Market Validation

These leases represent new demand in Skyline Center since the city’s acquisition in mid-2023. The long-term nature of the deals—alongside anticipated upset bids for large-floor space—underscores persistent leasing momentum even in legacy downtown stock.

Revenue Yield and Stabilized Ownership

Projected revenue ramps from these lease commitments reinforce the city's strategy to offset carrying costs. Leasing out excess space helps stabilize the assets and increases their market value ahead of eventual disposition.

Broader Implications for Downtown Wilmington

• CRE investors and landlords should note the appetite for Class A and adaptive second-generation space downtown, especially in city-owned assets now in landlord mode.
• Long-term equity plays in skyline proximal properties are gaining validation as municipal ownership models evolve into traditional investment-grade leasing models.
• Strategic pipeline development: city properties transitioning from single-tenant to multi-tenant opens up mixed-use or sale opportunities down the road.

What’s Next for Strategic Stakeholders

The Council also initiated the required public upset-bid process for McKim & Creed’s proposed multi-floor lease in Skyline Center—one of the largest to date at 22,580 sq ft, generating approximately $541,920/year, with a projected baseline of $5.6–6.4 million over 11 years.

With a small amount of remaining vacancy on the eighth floor, a successful competing bid could reshuffle market dynamics and create ripple effects for new leasing or resale of city properties.

Investor Takeaways

• Wilmington’s Skyline Center repositioning is driving new leasing momentum, offering investors a front-row view of downtown's adaptive CRE opportunity.
• Longer-term corporate and institutional leases elevate vacancy risk management and align with institutional-grade underwriting standards.
• Financial stabilization via leasing supports future asset disposition and offers repeatable revenue performance for city‑held CRE.

In Summary

This round of tenant commitments at Skyline Center and 115 N. Third Street signals that Wilmington’s downtown office market is transitioning from public consolidation to investment-grade leasing. With firm leasing activity, tightening inventory, and renewed landlord confidence, this marks a key moment for CRE investors tracking urban core recovery and opportunity.