Raleigh-based Progress Energy Inc.

• Position: Triangle

Raleigh-based Progress Energy Inc., which plans to eliminate 700-1,000 jobs after its proposed merger with Charlotte-based Duke Energy Corp., agreed to sublease 380,000 square feet at Two Progress Plaza to Red Hat Inc. through August 2035. Because there aren't many companies in the market for that much space, the distributor of Linux computer software, which plans to move its headquarters there from the 191,000 square feet it rents at N.C. State University's Centennial Campus by January 2013, got quite a deal.

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$3.2 million

Average annual rent Red Hat will pay during the sublease--after credits, free rent and a cash improvement payment from Progress but not including taxes and utilities about $300,000 less than it pays at Centennial Campus

$10.50

About what Red Hat will pay each year per square foot according to its base rent agreement, $11.48 less than that of the average lease signed in Raleigh during the fourth quarter of last year, says California-based CBRE Group Inc.

"Cautiously optimistic"

-- N.C. State University economist Michael Waiden's view on the Triangle's economic prospects this year, which he says are better than other regions of the state because of its highly...