The Fallon Company has quietly put 301 Hillsborough - the 19-story office tower that houses Pendo's global headquarters - up for sale, turning one of downtown Raleigh’s newest, amenity-heavy buildings into a real-time test of local office demand. The listing drops a high-quality, tech-anchored asset in front of institutional buyers just as some investors begin drifting back toward trophy office product.
What’s for sale
JLL, serving as the exclusive sales representative, pegs the building at roughly 291,995 square feet and notes it was about 87 percent occupied, with a weighted average lease term of roughly 7.1 years. Marketing materials spotlight an 11,000-square-foot sky-park terrace, a full fitness center and 643 parking spaces as key draws for tenants and buyers alike.
According to JLL, Pendo anchors the tower with roughly 105,251 square feet across four full floors, or about 36 percent of the building, and the company recently extended its lease through September 2032. The memo even states that “Pendo continues to show its commitment to 301 as its headquarters location” and cites an asset basis near an estimated replacement cost of about $750 per square foot, pitching the tower as a generational, institutional-grade opportunity.
Investors are circling
Industry data suggests the office-buying market is starting to wake up. CoStar reported that office investment volumes rose in the first quarter of 2026 and that offices led UK investment activity during that period, a trend brokers are now pointing to when they pitch select downtown properties. That backdrop helps explain why sellers might test demand on a newer, heavily amenitized tower right now.
Pendo has not been spared from broader tech-sector turbulence. Axios reported that the company cut roughly 90 jobs, about 10 percent of its workforce, in April as part of a broader reorganization. Even so, the offering materials underline Pendo’s long-term presence in downtown Raleigh, setting up a tension for investors who will have to balance perceived risk against the potential upside.
Why the building matters locally
The Fallon Company is leaning hard on the tower’s role in Raleigh’s fast-growing downtown corridor. The project opened in 2022 and was designed to knit together the Capital, Fayetteville Street, Warehouse and Glenwood South districts. That central position, paired with a heavy amenity package, is the core argument being made to buyers looking for assets that might outperform older suburban stock, according to The Fallon Company.
Market watchers say the next big tells will be what kind of buyer steps up and at what cap rate. CoStar first reported the listing on June 16, 2026, and JLL’s marketing materials began circulating to potential buyers earlier in April, so a more public sale process could emerge in the coming weeks.
However it plays out, the sale of 301 Hillsborough is shaping up to be one of the clearest price checks yet for Raleigh’s modern office stock. Buyers, public officials and downtown tenants will all be watching to see whether a trophy trade here points to a sustained return-to-office story in the Triangle.
