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http://media.www.dukechronicle.com/media/storage/paper884/news/2009/07/01/News/Durham.Braces.For.A.Smaller.Duke-3749955.shtml

Durham braces for a smaller Duke
By: Julius Jones
Posted: 7/1/09

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Durham feels real estate pinch

Given the size of the University's investment in the community, especially in revitalizing downtown Durham, it is unlikely that another company or institution would be able to fill the gap. According to the study, Duke spent approximately $227 million on construction services alone in the 2006-2007 fiscal year.

Casey Steinbacher, president and chief executive officer of the Durham Chamber of Commerce, said a large number of development projects in Durham can only begin because of Duke's commitment to lease space in the new buildings when construction is completed.

"They have been very successful with their leasing program throughout Durham, and specifically downtown Durham, in using their leases to help development projects get off the ground," she said, adding that Duke will help reverse the downward real estate cycle.

Perhaps the most prominent example of Duke's investment downtown is the American Tobacco Campus, where the University is the largest tenant. When Duke completes its previously planned move downtown, the 1 million sq.-ft. complex will be home to more than 500 employees.

Bill Kalkhof, president of Downtown Durham, Inc., said without Duke, the American Tobacco Campus could not have existed. Currently, the University leases approximately 210,000 square feet of commercial space in the complex.

"Duke has been the major player in helping the development of downtown Durham," Kalkhof said. "Duke's contribution to the ongoing revitalization of downtown has been remarkable and they are certainly one who deserves all the major credit."

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The University currently leases approximately 1.4 million sq.-ft. of office space in Durham and Durham County-making Duke and the Duke University Health System Durham's largest tenant, leasing nearly 30 percent of all office space in the county, according to the economic impact study.

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In addition to the indirect employment opportunities created by Duke's investments, the University and DUHS combined are the largest employers in Durham County, Steinbacher said.