Metro: Norfolk/Hampton Roads Submarket: Nwprt. News/Hampton · Q2 2010 of negative 11,400 square...
Transcript of Metro: Norfolk/Hampton Roads Submarket: Nwprt. News/Hampton · Q2 2010 of negative 11,400 square...
Metro: Norfolk/Hampton RoadsSubmarket: Nwprt. News/Hampton
Copyright 2020 Reis, Inc.
Copyright 2020 Reis, Inc.
ContentsSubmarket Executive Briefing 3
Submarket Trend Futures 6
Current Submarket Rent Details7
Nonanchor Rent Growth Comparisons7
Current Submarket Rent Details7
Nonanchor Rent Growth Comparisons8
Current Submarket Vacancy Details8
Vacancy Rate Comparisons9
Current Submarket Vacancy Details9
Vacancy Rate Comparisons10
Nonanchor Rent Growth Comparisons and Forecast10
Vacancy Rate Comparisons and Forecast11
Submarket Inventory Details12
Inventory Growth Comparisons12
Construction/Absorption Change13
Economic and Demographic Trends14
Submarket Area Map15
Submarket Data17
Submarket Data18
Submarket Data19
Metro Executive Briefing 20
Reis Observer 22
Metro Trend Futures 33
Current Metro Rent Details34
Nonanchor Rent Growth Comparisons34
Current Metro Rent Details34
Nonanchor Rent Growth Comparisons35
Current Metro Vacancy Details35
Vacancy Rate Comparisons36
Current Metro Vacancy Details36
Vacancy Rate Comparisons37
Nonanchor Rent Growth Comparisons and Forecast37
Vacancy Rate Comparisons and Forecast38
Metro Inventory Details39
Inventory Growth Comparisons39
Construction/Absorption Change40
Economic and Demographic Trends41
Metro Area Map42
Copyright 2020 Reis, Inc.
Contents (Continued)Metro Data
44Metro Data
45Metro Data
46Submarket Overview 47
New Construction Listing 49
Construction Deliveries50
Metro Construction Breakdown50
Submarket New Construction Project Tally50
Metro Inventory Details50
Inventory Growth Rankings Forecast51
Construction/Absorption Change51
Occupancy at Completion51
Stabilization Data52
Metro Area Map52
New Construction Listing54
Sales Trend 56
Activity57
Map57
Most Recent Transactions57
Comparable Group Details58
Power Center Report 61
Current Rent Snapshot62
Current Vacancy Snapshot62
New Construction62
Metro Power Center and Regional Mall Projects63
Cap Rate Trending63
Recent Metro Area Regional Mall Sales63
Metro Area Power Center and Regional Malls64
Metro Area Power Center and Regional Malls66
Economic and Demographic Data66
Economic and Demographic Trends66
Submarket Executive Briefing
Copyright 2020 Reis, Inc.
Submarket Executive BriefingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 51075682
Section 1 - Executive Briefing on Submarket Conditions
Average Asking Rent $13.65
● Up 0.4% from year-end 2019.
● Expected to finish 2020 at $12.63.
Average Vacancy Rate 15.1%
● Drifted downward by 20 basis points.
● Expected to finish 2020 at 17.6%.
Submarket Overview
With 5.3 million square feet,amounting to 19.8% of the total metroinventory, the NewportNews/Hampton submarket is thesecond largest of the six distinctgeographic concentrations that formthe Norfolk/Hampton Roads retailmarket, smaller only thanNorfolk/Chesapeake. In the ten-yearperiod beginning with Q2 2010, newadditions to the submarket totaled266,000 square feet, amounting to anannualized inventory growth rate of0.5%; over the same period, themetro growth rate has been 0.3%.
Asking and Effective Rent
Asking rents rose by 0.4% during thefirst quarter of 2020 to an average of$13.65, the lowest observed acrossthe metro's six submarkets. Since thesame reporting period last year,asking rents have advanced by 0.7%,up from $13.56. The NewportNews/Hampton submarket's currentasking rent levels are lower than themetro's average of $16.28, whileasking rent growth in the first quartercompares favorably to the metroaverage of 0.2%. Effective rents,which exclude the value ofconcessions offered to prospectivetenants, climbed by 0.5% during thefirst quarter to an average of $11.29.
Competitive Inventory, Absorption
Since the beginning of Q2 2010, themetro recorded an average annualabsorption rate of negative 11,400square feet. During the first quarter,metropolitan absorption totalednegative 62,000 square feet. In theNewport News/Hampton submarket,however, new renters took a net totalof 10,000 square feet off of themarket. The first quarter's positiveabsorption in the submarket followstwo consecutive quarters of negativeabsorption, amounting to 19,000square feet. The submarket sawabsorption totaling negative 23,000square feet over the past fourquarters; in historical perspective, thisrecent rate of tenant outmigration iseven greater than the annual averagesince the beginning of Q2 2010 ofnegative 600 square feet. Thesubmarket's average vacancy ratedrifted downward by 20 basis pointsduring the first quarter to 15.1%,which is 4.5 percentage points higherthan the long-term average, and 2.2percentage points higher than thecurrent metro average.
Outlook
Reis's new construction observationteam reports that no competitive retailstock will be introduced to thesubmarket through the end of 2022.Between now and year-end, net totalabsorption will be negative 135,000square feet. As a result, the vacancyrate will drift upward by 2.5percentage points to 17.6%. During2021 and 2022, no additionalcompetitive stock is expected to beintroduced to the submarketinventory. Total employment growthduring 2021 and 2022 is projected toaverage 1.5% annually, whilehousehold formations are expected toaverage an increase of 0.7% per year.Over the same period the metroabsorption rate is expected toaverage negative 109,000 square feetper year. The NewportNews/Hampton submarket, however,will experience absorption averaging13,000 square feet per year. Thesubmarket vacancy rate will finish2021 at 18.4% and will fall 1.2percentage points to 17.2% by yearend 2022. Between now and year-end2020 asking rents are expected to fall-7.5% to a level of $12.63, whileeffective rents will decline by -11.5%to $9.99. Thereafter, Reis projectsthat asking rent growth will decelerateto an annualized average of -0.8%during 2021 and 2022 to reach a levelof $12.44 per square foot.
Copyright 2020 Reis, Inc.
Submarket Trend Futures
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 71075682
Neighborhood Shopping Centers
Section 2 - Current Submarket Rent Details
Nonanchor Asking Rentby Age
Nonanchor Asking Rent Distribution Nonanchor Asking Rent Growth Rate Distribution
Year Built Rent
Before 1970 $14.55
1970-1979 $17.24
1980-1989 $16.62
1990-1999 $16.15
2000-2009 $18.48
After 2009 $27.89
All $13.91
As of 03/31/20
Low 25% Mean Median 75% High
$ 9.17 $12.49 $13.91 $16.29 $18.55 $27.89
7 7
5
9
0
3
0
3
Under$11.83
$11.84$14.30
$14.31$16.77
$16.78$19.24
$19.25$21.71
$21.72$24.18
$24.19$26.65
$26.66Over
Num
ber
of P
rope
rtie
s
Low 25% Mean Median 75% High
0.0% 0.5% 0.4% 0.5% 0.8% 0.9%
13
0
9
2
19
0 0
Under- 0.1%
0.0%0.1%
0.2%0.3%
0.4%0.5%
0.6%0.7%
0.8%0.9%
1.0%1.1%
1.2%Over
Num
ber
of P
rope
rtie
s
1 Negative Growth 33Positive Growth
As of 03/31/20 Qtr Ending 03/31/20
Anchor Asking Rent DistributionLow 25% Mean Median 75% High
$ 5.79 $ 8.87 $11.56 $11.10 $14.35 $17.43
As of 03/31/20
Section 3 - Nonanchor Rent Growth Comparisons
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Nwprt. News/Hampton 0.4% - 0.5% 0.4% 2.0% 0.5% 0.9%
Norfolk/Hampton Roads 0.1% - 0.2% 0.1% 0.6% 1.2% 1.3%
South Atlantic 0.2% 0.3% 0.2% 1.3% 1.8% 2.0%
United States 0.1% 0.1% 0.1% 1.3% 1.7% 1.8%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 6 3 6 3 1 5 5South Atlantic 110 27 97 27 38 96 97United States 386 107 326 107 113 311 314
1Q19 2Q19 3Q19 4Q19 1Q20
-0.40-0.200.000.200.400.600.801.001.201.401.60
Quarterly Rent Growth Rate Trends
Nwprt. News/Hampton
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 2019
-1.0
0.0
1.0
2.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends%
Period ending 12/31/19
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 81075682
Community Shopping Centers
Section 4 - Current Submarket Rent Details
Nonanchor Asking Rentby Age
Nonanchor Asking Rent Distribution Nonanchor Asking Rent Growth Rate Distribution
Year Built Rent
Before 1970 $14.12
1970-1979 $12.25
1980-1989 $13.58
1990-1999 $25.88
2000-2009 $16.12
After 2009 $29.15
All $13.43
As of 03/31/20
Low 25% Mean Median 75% High
$12.00 $12.40 $13.43 $15.38 $28.30 $29.15
0
8
3
01
0 0
2
Under$11.83
$11.84$14.30
$14.31$16.77
$16.78$19.24
$19.25$21.71
$21.72$24.18
$24.19$26.65
$26.66Over
Num
ber
of P
rope
rtie
s
Low 25% Mean Median 75% High
0.0% 0.5% 0.4% 0.5% 0.5% 4.3%
01
0
8
1
3
01
Under- 0.1%
0.0%0.1%
0.2%0.3%
0.4%0.5%
0.6%0.7%
0.8%0.9%
1.0%1.1%
1.2%Over
Num
ber
of P
rope
rtie
s
0 Negative Growth 14Positive Growth
As of 03/31/20 Qtr Ending 03/31/20
Anchor Asking Rent DistributionLow 25% Mean Median 75% High
$ 5.48 $ 7.58 $10.98 $ 8.85 $11.96 $26.79
As of 03/31/20
Section 5 - Nonanchor Rent Growth Comparisons
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Nwprt. News/Hampton 0.4% - 0.4% 0.4% 1.3% - 0.4% 0.4%
Norfolk/Hampton Roads 0.1% - 0.2% 0.1% 0.0% 0.6% 1.0%
South Atlantic 0.1% 0.3% 0.1% 1.2% 1.7% 1.9%
United States 0.1% 0.1% 0.1% 1.2% 1.5% 1.7%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 6 2 3 2 2 6 6South Atlantic 110 9 90 9 54 110 106United States 386 57 298 57 169 372 358
1Q19 2Q19 3Q19 4Q19 1Q20
-0.40-0.30-0.20-0.100.000.100.200.300.400.500.600.700.800.901.00
Quarterly Rent Growth Rate Trends
Nwprt. News/Hampton
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 2019
-2.0
-1.0
0.0
1.0
2.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends%
Period ending 12/31/19
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 91075682
Neighborhood Shopping Centers
Section 6 - Current Submarket Vacancy Details
Vacancy Rate By Age Vacancy Rate Distribution
Year Built Vac. Rate
Before 1970 12.0%
1970-1979 19.0%
1980-1989 14.8%
1990-1999 26.3%
2000-2009 3.6%
After 2009 14.0%
All 14.8%
As of 03/31/20
Low 25% Mean Median 75% High
0.0% 3.2% 14.8% 9.7% 17.6% 62.4%
11
7
3
7
1 10
4
Under5.0%
5.1%10.0%
10.1%15.0%
15.1%20.0%
20.1%25.0%
25.1%30.0%
30.1%35.0%
35.1%Over
Num
ber
of P
rope
rtie
s
As of 03/31/20
Section 7 - Vacancy Rate Comparisons
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Nwprt. News/Hampton 14.8% 15.3% 14.8% 14.9% 13.1% 12.1%
Norfolk/Hampton Roads 13.3% 13.3% 13.3% 13.2% 12.2% 11.5%
South Atlantic 9.7% 9.7% 9.7% 9.8% 9.8% 10.0%
United States 10.5% 10.4% 10.5% 10.5% 10.4% 10.6%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 6 3 4 3 4 3 3South Atlantic 110 93 98 93 96 88 82United States 386 322 334 322 324 288 255
1Q19 2Q19 3Q19 4Q19 1Q20
10.010.511.011.512.012.513.013.514.014.515.0
Quarterly Vacancy Rates
Nwprt. News/Hampton
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 2019
10.0
11.0
12.0
13.0
14.0
15.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends%
Period ending 12/31/19
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 101075682
Community Shopping Centers
Section 8 - Current Submarket Vacancy Details
Vacancy Rate By Age Vacancy Rate Distribution
Year Built Vac. Rate
Before 1970 20.8%
1970-1979 4.0%
1980-1989 16.3%
1990-1999 31.1%
2000-2009 24.6%
After 2009 4.5%
All 15.3%
As of 03/31/20
Low 25% Mean Median 75% High
2.5% 4.9% 15.3% 6.0% 18.0% 47.2%
3
5
0
2
1 1
0
2
Under5.0%
5.1%10.0%
10.1%15.0%
15.1%20.0%
20.1%25.0%
25.1%30.0%
30.1%35.0%
35.1%Over
Num
ber
of P
rope
rtie
s
As of 03/31/20
Section 9 - Vacancy Rate Comparisons
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Nwprt. News/Hampton 15.3% 15.2% 15.3% 15.0% 12.8% 12.0%
Norfolk/Hampton Roads 12.5% 12.0% 12.5% 11.5% 11.5% 10.8%
South Atlantic 9.3% 9.4% 9.3% 9.5% 9.3% 9.3%
United States 9.9% 9.9% 9.9% 10.0% 9.7% 9.6%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 6 5 5 5 6 5 5South Atlantic 110 98 98 98 101 92 86United States 386 334 332 334 328 300 285
1Q19 2Q19 3Q19 4Q19 1Q20
9.510.010.511.011.512.012.513.013.514.014.515.0
Quarterly Vacancy Rates
Nwprt. News/Hampton
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 20199.0
10.0
11.0
12.0
13.0
14.0
15.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends%
Period ending 12/31/19
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 111075682
Neighborhood and Community Shopping Centers
Section 10 - Nonanchor Rent Growth Comparisons and Forecast
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Nwprt. News/Hampton 0.4% - 0.4% 0.4% 1.6% 0.0% 0.6% - 1.7%
Norfolk/Hampton Roads 0.2% - 0.2% 0.2% 0.3% 0.9% 1.2% - 1.6%
South Atlantic 0.1% 0.3% 0.1% 1.3% 1.8% 1.9% - 1.2%
United States 0.1% 0.1% 0.1% 1.2% 1.6% 1.7% - 1.3%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 6 2 6 2 1 5 6 5South Atlantic 110 16 95 16 47 107 105 74United States 386 73 316 73 144 366 348 241
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-8.0
-6.0
-4.0
-2.0
0.0
2.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends and Forecast%
Period ending 12/31/24
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 121075682
Neighborhood and Community Shopping Centers
Section 11 - Vacancy Rate Comparisons and Forecast
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Nwprt. News/Hampton 15.1% 15.3% 15.1% 15.0% 13.0% 12.1% 17.2%
Norfolk/Hampton Roads 12.9% 12.7% 12.9% 12.4% 11.8% 11.1% 15.2%
South Atlantic 9.5% 9.6% 9.5% 9.6% 9.5% 9.7% 12.2%
United States 10.1% 10.2% 10.1% 10.2% 10.1% 10.1% 12.7%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 6 4 6 4 6 4 3 4South Atlantic 110 99 102 99 103 91 87 98United States 386 338 342 338 335 297 272 332
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
10.0
12.0
14.0
16.0
18.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends and Forecast%
Period ending 12/31/24
Section 12 - Submarket Inventory Details
Inventory By Center Age Shopping Center Stock Traits
Year Built Percent
Before 1970 21.0%
1970-1979 19.0%
1980-1989 26.0%
1990-1999 19.0%
2000-2009 8.0%
After 2009 6.0%
All 100.0%
As of 03/31/20
SubmarketLow Mean Median High
Year Built 1954 1985 1986 2015Size (sq. ft.) 16,900 92,905 73,197 263,680
Distance to Highway (miles) 0 0.3 0.2 1.2Distance to CBD (miles) 9 15.9 15 22.7
Distance to Landmark (miles) 0.4 1.8 1.8 3.4As of 03/31/20 Landmark =Coast
Average Submarket Lease Terms
Anchor/Nonanchor CRD % Free Rent
(mos)Expenses $
(Commercial)Lease Term
(yrs)Leasing
Commission %Tenant
Improvements $A - 7.7% 7.8 $ 2.10 11.4 9.7% $15.13N - 8.7% 7.3 $ 2.10 4.2 12.1% $17.92
As of 03/31/20
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 131075682
Section 13 - Inventory Growth Comparisons
Inventory Growth Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Nwprt. News/Hampton 0.0% 0.0% 0.0% 0.0% 0.0% 0.9% 0.0%
Norfolk/Hampton Roads 0.0% 0.0% 0.0% 0.0% - 0.2% 0.2% 0.1%
South Atlantic 0.0% 0.1% 0.0% 0.3% 0.4% 0.5% 0.3%
United States 0.0% 0.1% 0.0% 0.3% 0.4% 0.4% 0.3%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Submarket Rank Total Submarket RanksCompared to: Subs
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 6 2 2 2 2 2 1 4South Atlantic 110 52 55 52 58 73 23 89United States 386 169 172 169 185 246 66 283
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.0
1.0
2.0
3.0
4.0
Nwprt. News/Hampton
Norfolk/Hampton Roads
South Atlantic
US
Inventory Growth Comparisons and Forecast%
Period ending 12/31/24
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 141075682
Section 14 - Construction/Absorption Change
Construction and Absorption
Quarterly
1Q20 4Q19 YTD Avg
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Nwprt. News/Hampton 0 10,000 0.0 0 -8,000 0.0 0 10,000 0.0
Norfolk/Hampton Roads 0 -62,000 0.0 0 -139,000 0.0 0 -62,000 0.0Average over period ending: 03/31/20 03/31/20 03/31/20 12/31/19 12/31/19 12/31/19 03/31/20 03/31/20 03/31/20
Annualized
1 Year History 3 Year History 5 Year History
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Nwprt. News/Hampton 0 -31,000 0.0 0 -94,000 0.0 46,000 -16,000 -2.9
Norfolk/Hampton Roads 34,000 -164,000 -0.2 11,000 -253,000 0.0 90,000 -136,000 -0.7Average over period ending: 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19
Annualized
5 Year Forecast
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Nwprt. News/Hampton 0 -8,400 0.0
Norfolk/Hampton Roads 24,400 -56,000 -0.4Average over period ending: 12/31/24 12/31/24 12/31/24
-100,000
0
100,000
200,000
Squ
are
Fee
t
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
5
10
15
Vac
ancy
Rat
e (%
)Construction/Absorption and Vacancy
Vacancy Rate Construction Absorption
Period ending 12/31/24
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 151075682
Section 15 - Economic and Demographic Trends
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Norfolk/Hampton Roads South Atlantic US
Household Income Growth Trends and Forecast Metro vs. Region & U.S.
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Norfolk/Hampton Roads South Atlantic US
Total Employment Growth Trends and Forecast Metro vs. Region & U.S.
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.20%
0.40%
0.60%
0.80%
1.00%
Population Households
Norfolk/Hampton Roads Population/Household Growth Trends and Forecast
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 161075682
Section 16 - Submarket Area Map: Newport News/Hampton
Metro:Norfolk/Hampton Roads Submarket:Newport News/Hampton
Newport News Township Line Hampton River James River
Hampton Township Line
Submarket Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsSubmarket: Newport News/HamptonCustomerID:1075682
Copyright 2020 Reis, Inc. Page 171075682
Neighborhood Shopping Centers
Section 17 - Submarket Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 2,384,000 0 0.0% 253,000 10.6% 100 2,131,000 -24,000 $13.54 2.0%
2016 Y 2,384,000 0 0.0% 236,000 9.9% -70 2,148,000 17,000 $13.66 0.9%
2017 Y 2,384,000 0 0.0% 305,000 12.8% 290 2,079,000 -69,000 $13.84 1.3%
2018 Q2 2,384,000 0 0.0% 341,000 14.3% 150 2,043,000 -36,000 $13.51 - 1.4%
2018 Q3 2,384,000 0 0.0% 341,000 14.3% 0 2,043,000 0 $13.51 0.0%
2018 Q4 2,384,000 0 0.0% 346,000 14.5% 20 2,038,000 -5,000 $13.59 0.6%
2018 Y 2,384,000 0 0.0% 346,000 14.5% 170 2,038,000 -41,000 $13.59 - 1.8%
2019 Q1 2,384,000 0 0.0% 350,000 14.7% 20 2,034,000 -4,000 $13.82 1.7%
2019 Q2 2,384,000 0 0.0% 355,000 14.9% 20 2,029,000 -5,000 $13.91 0.7%
2019 Q3 2,384,000 0 0.0% 360,000 15.1% 20 2,024,000 -5,000 $13.93 0.1%
2019 Q4 2,384,000 0 0.0% 365,000 15.3% 20 2,019,000 -5,000 $13.86 - 0.5%
2019 Y 2,384,000 0 0.0% 365,000 15.3% 80 2,019,000 -19,000 $13.86 2.0%
2020 Q1 2,384,000 0 0.0% 353,000 14.8% -50 2,031,000 12,000 $13.91 0.4%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock%
2015 Y $11.23 2.1% 0.0 - 1.1%
2016 Y $11.34 1.0% 0.0 0.8%
2017 Y $11.48 1.2% 0.0 - 3.3%
2018 Q2 $11.20 - 1.5% 0.0 - 1.8%
2018 Q3 $11.20 0.0% n/a 0.0%
2018 Q4 $11.25 0.5% 0.0 - 0.2%
2018 Y $11.25 - 2.0% 0.0 - 2.0%
2019 Q1 $11.45 1.8% 0.0 - 0.2%
2019 Q2 $11.52 0.6% 0.0 - 0.2%
2019 Q3 $11.53 0.1% 0.0 - 0.2%
2019 Q4 $11.47 - 0.5% 0.0 - 0.2%
2019 Y $11.47 2.0% 0.0 - 0.9%
2020 Q1 $11.52 0.4% 0.0 0.6%
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Community Shopping Centers
Section 18 - Submarket Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 2,892,000 230,000 8.6% 315,000 10.9% 100 2,577,000 179,000 $13.37 1.9%
2016 Y 2,892,000 0 0.0% 286,000 9.9% -100 2,606,000 29,000 $13.55 1.3%
2017 Y 2,892,000 0 0.0% 327,000 11.3% 140 2,565,000 -41,000 $13.49 - 0.4%
2018 Q2 2,892,000 0 0.0% 367,000 12.7% 190 2,525,000 -55,000 $13.15 - 1.0%
2018 Q3 2,892,000 0 0.0% 385,000 13.3% 60 2,507,000 -18,000 $13.13 - 0.2%
2018 Q4 2,892,000 0 0.0% 428,000 14.8% 150 2,464,000 -43,000 $13.21 0.6%
2018 Y 2,892,000 0 0.0% 428,000 14.8% 350 2,464,000 -101,000 $13.21 - 2.1%
2019 Q1 2,892,000 0 0.0% 422,000 14.6% -20 2,470,000 6,000 $13.34 1.0%
2019 Q2 2,892,000 0 0.0% 431,000 14.9% 30 2,461,000 -9,000 $13.44 0.7%
2019 Q3 2,892,000 0 0.0% 437,000 15.1% 20 2,455,000 -6,000 $13.43 - 0.1%
2019 Q4 2,892,000 0 0.0% 440,000 15.2% 10 2,452,000 -3,000 $13.38 - 0.4%
2019 Y 2,892,000 0 0.0% 440,000 15.2% 40 2,452,000 -12,000 $13.38 1.3%
2020 Q1 2,892,000 0 0.0% 442,000 15.3% 10 2,450,000 -2,000 $13.43 0.4%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock%
2015 Y $11.01 2.0% 1.3 6.9%
2016 Y $11.17 1.4% 0.0 1.1%
2017 Y $11.13 - 0.4% 0.0 - 1.6%
2018 Q2 $10.84 - 1.0% 0.0 - 2.2%
2018 Q3 $10.82 - 0.2% 0.0 - 0.7%
2018 Q4 $10.88 0.6% 0.0 - 1.7%
2018 Y $10.88 - 2.2% 0.0 - 4.1%
2019 Q1 $10.99 1.0% 0.0 0.2%
2019 Q2 $11.08 0.8% 0.0 - 0.4%
2019 Q3 $11.08 0.0% 0.0 - 0.2%
2019 Q4 $11.04 - 0.4% 0.0 - 0.1%
2019 Y $11.04 1.5% 0.0 - 0.5%
2020 Q1 $11.09 0.5% 0.0 - 0.1%
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Neighborhood and Community Shopping Centers
Section 19 - Submarket Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 5,276,000 230,000 4.6% 568,000 10.8% 100 4,708,000 155,000 $13.45 1.9%
2016 Y 5,276,000 0 0.0% 522,000 9.9% -90 4,754,000 46,000 $13.60 1.1%
2017 Y 5,276,000 0 0.0% 632,000 12.0% 210 4,644,000 -110,000 $13.65 0.4%
2018 Q2 5,276,000 0 0.0% 708,000 13.4% 170 4,568,000 -91,000 $13.31 - 1.2%
2018 Q3 5,276,000 0 0.0% 726,000 13.8% 40 4,550,000 -18,000 $13.30 - 0.1%
2018 Q4 5,276,000 0 0.0% 774,000 14.7% 90 4,502,000 -48,000 $13.38 0.6%
2018 Y 5,276,000 0 0.0% 774,000 14.7% 270 4,502,000 -142,000 $13.38 - 2.0%
2019 Q1 5,276,000 0 0.0% 772,000 14.6% -10 4,504,000 2,000 $13.56 1.3%
2019 Q2 5,276,000 0 0.0% 786,000 14.9% 30 4,490,000 -14,000 $13.65 0.7%
2019 Q3 5,276,000 0 0.0% 797,000 15.1% 20 4,479,000 -11,000 $13.66 0.1%
2019 Q4 5,276,000 0 0.0% 805,000 15.3% 20 4,471,000 -8,000 $13.60 - 0.4%
2019 Y 5,276,000 0 0.0% 805,000 15.3% 60 4,471,000 -31,000 $13.60 1.6%
2020 Q1 5,276,000 0 0.0% 795,000 15.1% -20 4,481,000 10,000 $13.65 0.4%
2020 Y 5,276,000 0 0.0% 930,000 17.6% 230 4,346,000 -125,000 $12.63 - 7.1%
2021 Y 5,276,000 0 0.0% 971,000 18.4% 80 4,305,000 -41,000 $12.48 - 1.2%
2022 Y 5,276,000 0 0.0% 905,000 17.2% -120 4,371,000 66,000 $12.44 - 0.3%
2023 Y 5,276,000 0 0.0% 878,000 16.6% -60 4,398,000 27,000 $12.44 0.0%
2024 Y 5,276,000 0 0.0% 847,000 16.1% -50 4,429,000 31,000 $12.47 0.2%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock%
2015 Y $11.11 2.0% 1.5 3.3%
2016 Y $11.25 1.3% 0.0 1.0%
2017 Y $11.29 0.4% 0.0 - 2.4%
2018 Q2 $11.00 - 1.3% 0.0 - 2.0%
2018 Q3 $10.99 - 0.1% 0.0 - 0.4%
2018 Q4 $11.05 0.5% 0.0 - 1.1%
2018 Y $11.05 - 2.1% 0.0 - 3.2%
2019 Q1 $11.20 1.4% 0.0 0.0%
2019 Q2 $11.28 0.7% 0.0 - 0.3%
2019 Q3 $11.28 0.0% 0.0 - 0.2%
2019 Q4 $11.23 - 0.4% 0.0 - 0.2%
2019 Y $11.23 1.6% 0.0 - 0.7%
2020 Q1 $11.29 0.5% 0.0 0.2%
2020 Y $ 9.99 -11.0% 0.0 - 2.9%
2021 Y $ 9.87 - 1.2% 0.0 - 1.0%
2022 Y $ 9.98 1.1% 0.0 1.5%
2023 Y $10.11 1.3% 0.0 0.6%
2024 Y $10.16 0.5% 0.0 0.7%
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Metro Executive Briefing
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Section 20 - Executive Briefing on Metro Conditions
Average Asking Rent $16.28
● Up 0.2% from year-end 2019.
● Expected to finish 2020 at $14.94.
Average Vacancy Rate 12.9%
● Drifted upward by 20 basis points.
● Among the 20 highest vacancies nationally.
● Expected to finish 2020 at 15.0%.
Market Overview
The Norfolk/Hampton Roads retailmarket is comprised of 26.7 millionsquare feet in six geographicconcentrations ranging in size fromthe 6.6 million square footNorfolk/Chesapeake submarket to theWilliamsburg/Gloucester/Yorksubmarket, which accounts for 2.7million square feet. In the ten-yearperiod beginning with Q2 2010, thePortsmouth/Suffolk submarket hasexperienced the greatest introductionof new inventory, 411,000 squarefeet, amounting to 41.5% of all newcompetitive stock added to themarket.
Asking and Effective Rent
Asking rents climbed by 0.2% duringthe first quarter of 2020 to an averageof $16.28. Since the same reportingperiod last year, asking rents haveticked upward by 0.1%, up from$16.26. Since the beginning of Q22010, the metro as a whole hasrecorded an annual average increaseof 0.9%. Effective rents, whichexclude the value of concessionsoffered to prospective tenants, also
rose by 0.2% during the first quarter.The identical rates of change suggestthat landlords have managed tomaintain a stable relationshipbetween asking and effective rentvalues. The asking rent growth rate ofthe metro's six underlying submarketsover the past four quarters has beenmixed, with cumulative change ratesranging from 1.4%(Lynnhaven/Oceana) to -1.2%(Norfolk/Chesapeake).
Competitive Inventory, Absorption
Although shifts in demand for retailspace typically trail employment andhousehold figures, it is worth notingthat the cumulative impact ofeconomic and demographic trends inthe Norfolk/Hampton Roadsmetropolitan area contributed toabsorption of negative 62,000 squarefeet during the first quarter, and a totalof negative 223,000 square feet overthe past four quarters; in historicalperspective, this recent rate of tenantoutmigration is even greater than theannual average since the beginning ofQ2 2010 of negative 11,400 squarefeet. In a long-term context, the firstquarter vacancy rate is 2.3
percentage points higher than the10.6% average recorded since thebeginning of Q2 2010.
Outlook
Between now and year's end, no newcompetitive retail stock will beintroduced to the metro, and Reisestimates that net total absorption willbe negative 558,000 square feet. Inresponse, the vacancy rate willcontinue to drift upward to finish theyear at 15.0%. During 2021 and 2022,developers are expected to deliver atotal of 30,000 square feet. Totalemployment growth during 2021 and2022 is expected to average 1.5%annually, while household formationsare projected to average an increaseof 0.7% per year. Over the sameperiod the metro absorption rate isexpected to average negative109,000 square feet per year. Themarket vacancy rate will finish 2021 at15.7% and will increase 0.2percentage points to 15.9% by yearend 2022. Between now and year-end2020 asking rents are expected todecline -8.2% to a level of $14.94,while effective rents will fall by -12.4%to $11.89.
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THE ECONOMY
An uncertain future. “Healthy defense spending means 2019 should extend a period of economic growth for Hampton Roads,” noted The Virginia-Pilot earlier this year citing a forecast by Old Dominion University [ODU]. “But, [the forecast] said diversifying the local economy would be even better.” These have been the issues for a long while. With the local economy heavily dependent on the military (Hampton Roads—the name itself is a nautical term—hosts five major naval bases including Norfolk Naval Base, the world’s largest), the defense budget increases implemented under the Trump administration have been music to the ears of the Hampton Roads economy. Persistent anxiety over the earlier policy of base closings and contractions (remember BRAC?) has been much alleviated. Still, the lopsided local economy remains vulnerable to trends in the defense sector and the defense budget, which are changeable. Thus, the recent boost given to Hampton Roads does not address an underlying liability—the lack of substantial diversification. Thus, while local employment “has increased, household incomes continue to rise, and local GDP continues to surge thanks to wins in defense spending, tourism, and health services,” notes Cushman & Wakefield/Thalhimer, “Washington storm clouds will continue to be on the horizon in a market so impacted by the federal political landscape.” Further, the local economy lacks the business infrastructure—a broad-based core of corporate tenants, a substantial high-tech sector, a well-educated work force, for example—that would support ample diversification. Skilled young people continue to depart the area. Thus, noted ODU in an October report, “Hampton Roads’ economic recovery features an uncertain future.” Accordingly, the recent boost given by the defense sector is not transformative and leaves the local economy as dependent as ever on budgeting for defense. Indeed, private non-defense-related job growth has remained sluggish. According to U.S. Bureau of Labor Statistics (BLS) data, it took until late 2017 for average annual non-farm employment in the Hampton Roads Metropolitan Statistical Area (MSA) to return to pre-recession levels. Preliminary total non-farm employment in the local MSA as of November 2019, reflecting a mix of gains and losses among individual sectors, was up just 0.9% year-over-year, a gain of 7,200 jobs net. The October-to-October increase was 4,500 jobs (0.6%).
Employment: • The BLS reports a seasonally
unadjusted unemployment rate of 2.7% in October 2019 for the Virginia Beach-Norfolk-Newport News MSA, down from 3.0% one year earlier.
• Moody’s Economy.com reports a
third quarter 2019 average household income of $133,349 for Norfolk. Average household incomes of $161,142 and $143,029 are reported for the top metros in the nation and South Atlantic region, respectively.
Employment By Sector:
Employment Growth:
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Much of the recent weakness has been located in the Trade, Transportation, and Utilities and Professional and Business Services sectors. Employment in the former as of November was down fully 2,200 jobs from 12 months prior, a decline of 1.7%, while the latter saw a net loss of 1,700 jobs for a 1.5% decline. Notably, however, employment in the latter’s Professional, Scientific, and Technical Services subsector, perhaps a reflection of defense sector activity, grew by 2,700 jobs November-to-November for a hefty 5.2% increase. Interestingly as well, the Government sector as a whole shrunk by 1,600 jobs—a 1.0% loss—even as the Federal Subsector added 1,500 net for a 2.6% gain. The period’s strongest job creator was the Mining, Logging, and Construction sector (mainly Construction), which grew by 4,700 jobs for a gain of fully 12.5%; it was the highest rate of job growth as well. Leisure and Hospitality, accounting for fully 14.4% of total private non-farm employment, followed with 3,700 added net—growth at 4.2%—while the Manufacturing and Education and Health Services segments each grew by 1,600 jobs for respective increases of 2.8% and 1.4%. Population growth proceeds at a crawl. According to data provided by Moody’s Economy.com, the population of the local MSA, now counted at about 1.74 million, increased by only 0.3% (about 5,000 persons) in 2018, a rate of growth low enough or nearly so to indicate net emigration. Growth at 0.4% (about 7,000 persons) currently is expected for 2019.
OUTLOOK
While increases in defense spending bring some relief, reduce anxiety, and produce some new jobs, they neither alter the basic composition of the Hampton Roads economy nor eliminate its embedded liabilities. ODU “urges” Hampton Roads leadership to “look for opportunities to diversify the local economy.” On a large scale, though, that’s easier said than done. Slow growth and the related lack of diversification are likely to remain long-term trends here. “The 2020 presidential election, a potential withdrawal from Afghanistan, the continued rise of China, the challenge of North Korea and uncertainty in the Middle East will challenge defense budgets,” stated Robert M. McNab, director of ODU’s Dragas Center for Economic Analysis and Policy.
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THE REAL ESTATE MARKET
OFFICE
With little corporate expansion or relocation and only a small white-collar employment sector, Hampton Roads hosts a small general purpose, multi-tenant office market counted by Reis at just 17.6 million square feet. A total of 10.1 million qualify as Class A. Inventory is widely distributed among several submarkets. The two in Virginia Beach combined and the Norfolk submarket, both on the south side, claim respective totals of 6.4 million and 4.2 million square feet. On the Peninsula, the Newport News/Hampton submarket hosts 4.3 million. In a market that tends to see little action, there is now a new phenomenon—expansion in the coworking sector, a new trend seen across the nation, “The buzz of coworking and shared office... has finally arrived in Hampton Roads,” stated Cushman & Wakefield/Thalhimer in a recent report in the local market. Coworking firms Gather, Novel Coworking, and Percolator have opened or soon will open locations in downtown Norfolk. “The saturation in the Downtown Norfolk market is spurring on companies like Gather, Venture X, Industrious, and rumors of WeWork to explore other submarkets across the region.” Recent construction, meanwhile, has been meager amid anemic demand. The 301,000 square feet of general-purpose space that completed construction in 2017 was the largest single-year total since 2010. Net absorption trailed at 159,000. The year 2018 followed with the delivery of only 80,000. Net absorption for the year ran at 49,000. The first three quarters of 2019 followed with the delivery of a single small project, the 56,400-square-foot Beacon One, which completed during the first quarter
Special Real Estate Factors:
• Office: “There are several large blocks of contiguous square footage including Norfolk Southern, Dominion Enterprises, and several former retail boxes that are inflating overall vacancy numbers above true market fundamentals.” So states Cushman & Wakefield/Thalhimer, assessing according to its own data and criteria, in its third quarter report on the local market, “Almost every submarket is a landlord favorable market, especially on existing tenant renewals as landlords look past sluggish absorption and continue to push rents.”
• More. “The significant negative absorption numbers in Norfolk were a result of the Norfolk Southern headquarters being listed [Reis does not yet include the 300,000 square feet thus entailed; while available, the space remains occupied], the Nordstrom retail box marketed as office space, and the former Farm Fresh opportunity at 260 Boush Street that is currently under contract.”
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in Newport News. Year-to-date net absorption through three quarters was 104,000 square feet, 52,000 of which is attributed to the third. Current non-medical-office space construction includes the $83 million, 260,000-square-foot Ferguson Town Center Campus in Newport News, for and by Ferguson Enterprises. In January 2019, meanwhile, Summit Pointe Realty LLC announced that it had commenced development of the first three blocks of the second phase of its $300 million Summit Pointe mixed-use development at the Greenbrier community in Chesapeake, PRNewswire reported at the time. A 150,000-square-foot office building with ground floor retail is included. A 325,000-square-foot owner-occupied headquarters for Dollar Tree completed at the same development in August last year. The biggest news in the recent history of this market, however, was not favorable. Fortune 500 railroad giant Norfolk Southern announced last December that it would relocate its headquarters from 3 Commercial Plaza (a.k.a. Norfolk Southern Tower) in the Norfolk Central Business District (CBD) to a new facility in Atlanta, evacuating 331,000 square feet by summer 2021. The emptied space could represent an opportunity, say optimistic observers (see Special Real Estate Factors for related commentary). Work on the firm’s new Atlanta site began in March 2019. Quarter-end vacancy was 16.8%, down 30 basis points for the period and down 40 year-to-date after a loss of 40 through 2018. The Class A vacancy rate for the quarter, at 13.1%, was down 50 basis points year-to-date following a 60-basis-points decline through 2018. Rent growth slipped to a certain extent in 2018 but has picked up somewhat in 2019. Growth, though, is not strong and rents are not high. At $20.32 psf and $16.78 psf, average asking and effective rates in the third quarter were up 0.9% and 1.0% year-to-date following increases of 1.0% and 1.3% all told in 2018. The third quarter Class A mean asking price, at $22.31 psf, was up 0.9% year-to-date after 2018’s increase at 0.7%. • While there are a few bright spots, the basic low-key profile of the local market
likely will remain in place. The 56,000 square feet of new space for 2019, already online, are expected to face net absorption below 100,000. The vacancy rate would close at about 17.0%. Rent growth at about 1.5% is expected. Another low-key performance is expected for 2020.
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APARTMENT The large annual market-rate apartment construction completion totals seen in Hampton Roads since 2013 will be followed by a more modest sum in 2019 (currently projected at 549 units). Demand, though, has been strong relative to new supply. The 7,459 units that delivered over the four-year span ending with 2018 met with 8,090 units of net absorption. Totals for 2018 alone were 1,764 and 1,636. Much of local apartment development is undertaken by local firms. The first three quarters of 2019 followed with only 453 units of new supply, all of which arrived during the third quarter in three projects led by the Clairmont at Harbour View Station complex in Suffolk. Local firm Kotarides Development is the developer. Also coming online during the quarter was the 132-unit second phase of the Nexus Flats complex in Virginia Beach. The 136-unit first phase completed in late 2018. Net absorption year-to-date through the third quarter, at 1,313 units, ran well ahead of same-term new supply. The third quarter net alone was 362 units. Also completing in 2018, meanwhile, was the $90 million, 24-story, 270-unit Icon at City Walk Tower in downtown Norfolk, the development of the iconic 1 Commercial Place office building. A second, companion office tower has been renovated. Local firm Marathon Development is the developer. See Special Real Estate Factors for more on Marathon and the large role it plays in the local apartment market. Current market-rate construction consists of a combined total of 1,383 units. The newest and largest, breaking ground in December 2019, is the 15-story, 266-unit 27th Street and Atlantic Avenue tower at that Virginia
• Apartment: “Thought downtown Norfolk couldn’t possibly need more apartments?” queries The Virginian-Pilot in a late-October article. “The developer largely responsible for turning the area into a place where several thousand people live and work, including converting the former Bank of America office tower into residences, says there’s still plenty of demand.” The developer at issue, in the person of Frank “Buddy” Gadams, is Norfolk-based Marathon Development Group, now “planning to build two more apartment complexes, this time from the ground up” (Marathon is responsible for the 2018 redevelopment of the 1 and 2 Commercial Place towers into apartment—Icon at CityWalk—and office uses).
• More. One of the new projects would be near the Neon District on land acquired in late-2016. The other “would sit next to his high-rise Icon apartment tower near Waterside Drive. ‘Together, they would bring more than 500 more apartments to the downtown Norfolk area.’ And another developer plans to build 170 units in what is now The Virginian-Pilot headquarters on West Brambleton Avenue.” Gadams “expects to submit plans to the city within 60 days. Each project will cost more than $50 million to build.” “Interest rates are at record lows and
Special Real Estate Factors: Continued
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Beach address. Virginia Beach-based Armada Hoffler Properties, developer of Virginia Beach Town Center, is the developer. Due online in January, also in Virginia Beach, is the 282-unit Mezzo Apartment Homes complex. Regional firm Atlantic Dominion Distributors is the owner. Breaking ground in June, also in Virginia Beach, is locally-based Franklin Johnston Group’s 244-unit Coastal 61 at Oxford Village complex. With only small fluctuations, apartment vacancy has run at or below 5.0% since the third quarter of 2016. It dipped below 4.0% in the second quarter of 2019. The rate in the third quarter was 3.7%, up 10 basis points for the period but down 110 year-to-date after a flat performance overall through 2018. The rate could slip additionally during the final quarter. While nearly all recent market-rate construction qualifies as Class A, quarter-end vacancy in that sector was only 3.6%, down 110 basis points year-to-date following a 10-basis-points increase through 2018. Rent growth has been mainly favorable. At $1,087 and $1,045 per month, asking and effective averages for third quarter were up 1.7% and 1.3% year-to-date following increases of 3.4% and 3.1% all told in 2018. Third quarter growth rates were 0.6% for both averages. The Class A asking average was $1,238 per month, up 1.3% year-to-date after a 2.8% increase through 2018. • The 549-unit market-rate completion total projected for 2019, smallest in a year
since 2001, is expected to meet with some 1,700 units of net absorption. The vacancy rate would slip to about 3.5%. Gains at approximately 2.0% are expected for average rents for the year. A flat performance currently is expected for 2020.
demand is very robust for housing,” noted Gadams in an email. “The opportunity is large at this point and time.” The Federal Reserve has cut the interest rate twice this year and is expected to do so again, adds the article.
Special Real Estate Factors: Continued
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TRANSACTION ANALYTICS Office Thirteen office property sales were completed during 2018 for a combined total of $233.8 million at a low average price of $106 psf. The first three quarters of 2019 followed with the sale of eight properties for a combined total of $68.2 million at a mean price of $132 psf. The third quarter total for three transactions was $30.6 million at $151 psf. The 12-month rolling cap rate per quarter-end was 6.7%, down from 6.8% four quarters prior. In the third quarter’s largest sale, Hampton Roads Connector Partners paid FHC Property Holdings LLC $12.97 million ($150 psf, NRA) in August for the 86,700-square-foot Riverside Corporate Center multi-tenant office building in Norfolk. Apartment Twenty-five apartment property sales closed during 2018 for a combined total of $506.7 million at an average selling price of $98,000 per unit. The total for the first three quarters of 2019 for 13 transactions was $372.4 million at $132,000 per unit. The third quarter sum was $101.3 million at $120,000 per unit for four deals with an average cap rate of 5.6%. The 12-month rolling cap rate per quarter-end was 5.3%, down from 6.6% four quarters prior. In the third quarter’s largest deal, Capital Square 1031 paid Runnymede Corporation $48.6 million ($215,044 per unit) for the 226-unit Saltmeadow Bay market-rate rental complex in Virginia Beach. The sale closed in August at a 5.1% cap rate.
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Reis Observer NORFOLK
8
Published January 13, 2020
Retail A sum of $364.7 million were exchanged in 56 retail property transactions during 2018, up from the totals reported for 2017. The first three quarters of 2019 saw $406.5 million change hands in 35 deals. The total for the third quarter alone for 16 transactions was $220.1 million. Average selling prices for the quarter and first three of the year were $188 psf and $211 psf. Averages for 2018 and 2017 were $91 psf and $141 psf. Mean cap rates measured quarterly recently have been erratic. The rate in the third quarter was 8.3%, up from 6.7% the quarter before and from 4.3% a year earlier. The 12-month rolling cap rate per the end of the third quarter was 6.5%, down from 8.1% 12 months prior. In the third quarter’s largest deal, largest in a year as well, Acadia Realty Trust paid locally-based Divaris Real Estate Inc. $87.0 million ($208 psf) for 419,089 square feet of the 505,699-square-foot Landstown Commons Shopping Center power center in Virginia Beach. The sale closed in September at an 8.4% cap rate. The center’s 86,610-square-foot Kohl’s store was not included in the sale.
* Reis Transaction Analytics includes single sale transactions of $2,000,000 and greater, and excludes portfolio sales
where pricing of individual buildings cannot be confirmed.
Reis ObserverJanuary 13, 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 301075682
Reis Observer NORFOLK
9
Published January 13, 2020
RETAIL
Prior to the recession, Hampton Roads went through a period of unusually active retail real estate construction focused heavily on large power centers. Local development, reflecting the changes in retailing seen across the country, including numerous store closings, has been slow since (see Special Real Estate Factors for related commentary). There have been a few significant items in the recent period, however. IKEA opened a 331,000-square-foot store in April 2019 in Norfolk. In the same area, a hot zone for retail, Simon Property Group’s 332,000-square-foot Norfolk Premium Outlets outlet center completed in 2017. In addition, Cushman & Wakefield/Thalhimer has noted interest in the area on the part of “national brands.” The market, all the same, maintains a low profile. No retail space of any description completed construction metrowide in 2018. While 2019 followed with 447,600 square feet, most of that volume belongs to the IKEA store cited above and to a 113,000-square-foot freestanding Wegmans store, which opened in Virginia Beach in March. No retail projects were under construction per the date of this report. Another large one, however, is in the pipeline. Thus, a March 2021 completion date is given for the 500,000 square feet of retail planned for the Summit Pointe mixed-use development in Chesapeake. Dollar Tree Properties is the developer. Until the 21,000-square-foot Shoppes at Lake Wright neighborhood center from developer Apple Retail delivered in Norfolk in May, no community or neighborhood center projects had completed construction since 111,000 square feet arrived in 2016. Following in August were 13,000 square feet of neighborhood center space at the Little Neck development in Virginia Beach. Net absorption in this sector, meanwhile,
Special Real Estate Factors: Continued
• Retail: “Notable announcements” during the third quarter included Dick’s Sporting Goods decision not to renew its lease and to close its store in Virginia Beach Town Center, states Cushman & Wakefield/ Thalhimer’s third quarter report on the local market: However, the landlord is reporting that a replacement for Dick’s has been lined up. “K-Mart will close its last two Virginia stores located in Chesapeake and Yorktown. Two Farm Fresh stores that were acquired by private operators have elected to terminate their leases and close their doors, one in Virginia Beach, and the other in Norge.”
• More. “GNC and Forever 21 recently announced store closings that may impact the Hampton Roads market. GNC will close 900 stores (1.5 million square feet) around the country. Although a list of specific stores has not been released at this time, GNC currently has 30 stores throughout Hampton Roads. Forever 21 will close 178 stores (6 million square feet), with one of them being located within MacArthur Mall.” In January 2020, Pier 1 Imports announced that it would close 450 of the 936 stores it operates nationwide. The future of the retailer’s five stores in Hampton Roads was uncertain per the date of this report.
Reis ObserverJanuary 13, 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 311075682
Reis Observer NORFOLK
10
Published January 13, 2020
has been poor. A total of negative 594,000 square feet over the two-year span 2017-2018 (a portion of that loss in occupancy, however, was a statistical effect of the 2018 removal of some product from the inventory count). The first three quarters of 2019 followed with negative 25,000. The third quarter community-neighborhood shopping center market vacancy rate was 12.2%, up 20 basis points for the period and up 10 year-to-date. At $16.29 psf and $13.58 psf, third quarter average asking and effective rents were up 0.6% and 0.5% year-to-date following 2018’s gains of 1.4% and 1.5%. Growth rates in the third quarter were negative at 0.2% and 0.3%. Hampton Roads power center vacancy, also somewhat elevated, ended the third quarter at 7.7%, up 10 basis points for the period and up 90 year-over-year. The national third quarter power center vacancy rate was 6.3%, down 30 basis points year-over-year. The mean asking lease rate for local non-anchor power center space for the quarter was $21.84 psf, up 3.1% for the period, up 4.2% year-over-year. • Community-neighborhood center net absorption at about minus 35,000 square feet is
expected for 2019 alongside the year’s 34,000 square feet of new supply (already online, as described). Vacancy would hold steady. Rent growth below 1.0% on average is anticipated.
For additional information on up to 275 markets for the four principal property types plus specialty sectors, visit www.reis.com.
Unless otherwise indicated, economic and demographic data provided by Moody’s Economy.com
Publication Date: January 2020 © 2020 Reis, Inc.
Sector 3Q19 3Q18 Chg
Office 16.8% 17.8% -100 bps
Apartment 3.7% 4.3% -60 bps
Retail 12.2% 12.3% -10 bps
Vacancy
Sector Chg
Office $20.32 psf $19.99 psf 1.7%
Apartment $1,087 month $1,060 month 2.5%
Retail $16.29 psf $16.07 psf 1.4%
Rents3Q19 3Q18
Reis ObserverJanuary 13, 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
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Neighborhood Shopping Centers
Section 22 - Current Metro Rent Details
Nonanchor Asking Rentby Age
Nonanchor Asking Rent Distribution Nonanchor Asking Rent Growth Rate Distribution
Year Built Rent
Before 1970 $16.41
1970-1979 $16.52
1980-1989 $17.42
1990-1999 $18.63
2000-2009 $22.14
After 2009 $27.17
All $16.09
As of 03/31/20
Low 25% Mean Median 75% High
$10.00 $14.27 $16.09 $16.54 $20.00 $29.44
27
40
53
32
1215
12
19
Under$12.58
$12.59$14.96
$14.97$17.34
$17.35$19.72
$19.73$22.10
$22.11$24.48
$24.49$26.86
$26.87Over
Num
ber
of P
rope
rtie
s
Low 25% Mean Median 75% High
- 1.1% 0.0% 0.1% 0.5% 2.2% 3.3%
15
32
0
33
64
0 3
63
Under- 1.1%
- 1.0%- 0.6%
- 0.5%- 0.1%
0.0%0.4%
0.5%0.9%
1.0%1.4%
1.5%1.9%
2.0%Over
Num
ber
of P
rope
rtie
s
47 Negative Growth 163Positive Growth
As of 03/31/20 Qtr Ending 03/31/20
Anchor Asking Rent DistributionLow 25% Mean Median 75% High
$ 5.17 $ 9.00 $11.83 $11.49 $14.24 $21.15
As of 03/31/20
Section 23 - Nonanchor Rent Growth Comparisons
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 0.1% - 0.2% 0.1% 0.6% 1.2% 1.3%
South Atlantic 0.2% 0.3% 0.2% 1.3% 1.8% 2.0%
United States 0.1% 0.1% 0.1% 1.3% 1.7% 1.8%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
South Atlantic 25 18 20 18 20 19 19United States 80 52 60 52 60 47 48
1Q19 2Q19 3Q19 4Q19 1Q20
-0.20-0.15-0.10-0.050.000.050.100.150.200.250.300.350.400.450.500.55
Quarterly Rent Growth Rate Trends
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 20190.0
0.5
1.0
1.5
2.0Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends%
Period ending 12/31/19
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Section 24 - Current Metro Rent Details
Nonanchor Asking Rentby Age
Nonanchor Asking Rent Distribution Nonanchor Asking Rent Growth Rate Distribution
Year Built Rent
Before 1970 $19.00
1970-1979 $18.78
1980-1989 $15.55
1990-1999 $21.67
2000-2009 $20.15
After 2009 $24.69
All $16.46
As of 03/31/20
Low 25% Mean Median 75% High
$10.46 $15.59 $16.46 $19.00 $20.90 $29.15
10
8
1011
9
32
9
Under$12.58
$12.59$14.96
$14.97$17.34
$17.35$19.72
$19.73$22.10
$22.11$24.48
$24.49$26.86
$26.87Over
Num
ber
of P
rope
rtie
s
Low 25% Mean Median 75% High
- 1.1% 0.0% 0.1% 0.5% 0.7% 4.3%
47
0
8
28
02
13
Under- 1.1%
- 1.0%- 0.6%
- 0.5%- 0.1%
0.0%0.4%
0.5%0.9%
1.0%1.4%
1.5%1.9%
2.0%Over
Num
ber
of P
rope
rtie
s
11 Negative Growth 51Positive Growth
As of 03/31/20 Qtr Ending 03/31/20
Anchor Asking Rent DistributionLow 25% Mean Median 75% High
$ 5.48 $ 8.85 $12.68 $11.17 $15.27 $24.18
As of 03/31/20
Section 25 - Nonanchor Rent Growth Comparisons
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 0.1% - 0.2% 0.1% 0.0% 0.6% 1.0%
South Atlantic 0.1% 0.3% 0.1% 1.2% 1.7% 1.9%
United States 0.1% 0.1% 0.1% 1.2% 1.5% 1.7%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
South Atlantic 25 15 21 15 21 22 21United States 80 47 60 47 70 70 64
1Q19 2Q19 3Q19 4Q19 1Q20
-0.25-0.20-0.15-0.10-0.050.000.050.100.150.200.250.300.350.400.450.50
Quarterly Rent Growth Rate Trends
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 20190.0
0.5
1.0
1.5
2.0Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends%
Period ending 12/31/19
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Section 26 - Current Metro Vacancy Details
Vacancy Rate By Age Vacancy Rate Distribution
Year Built Vac. Rate
Before 1970 17.8%
1970-1979 12.6%
1980-1989 11.6%
1990-1999 21.9%
2000-2009 10.3%
After 2009 6.5%
All 13.3%
As of 03/31/20
Low 25% Mean Median 75% High
0.0% 2.1% 13.3% 8.3% 15.5% 66.5%
84
32 3324
8 4 5
20
Under5.0%
5.1%10.0%
10.1%15.0%
15.1%20.0%
20.1%25.0%
25.1%30.0%
30.1%35.0%
35.1%Over
Num
ber
of P
rope
rtie
s
As of 03/31/20
Section 27 - Vacancy Rate Comparisons
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 13.3% 13.3% 13.3% 13.2% 12.2% 11.5%
South Atlantic 9.7% 9.7% 9.7% 9.8% 9.8% 10.0%
United States 10.5% 10.4% 10.5% 10.5% 10.4% 10.6%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
South Atlantic 25 22 22 22 22 20 17United States 80 65 66 65 64 53 47
1Q19 2Q19 3Q19 4Q19 1Q20
10.0
10.5
11.0
11.5
12.0
12.5
13.0
Quarterly Vacancy Rates
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 2019
10.0
10.5
11.0
11.5
12.0
12.5
13.0
Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends%
Period ending 12/31/19
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Section 28 - Current Metro Vacancy Details
Vacancy Rate By Age Vacancy Rate Distribution
Year Built Vac. Rate
Before 1970 14.8%
1970-1979 8.7%
1980-1989 13.9%
1990-1999 12.2%
2000-2009 11.3%
After 2009 15.4%
All 12.5%
As of 03/31/20
Low 25% Mean Median 75% High
0.0% 2.5% 12.5% 5.5% 18.0% 43.8%
26
13
63
6
1 1
6
Under5.0%
5.1%10.0%
10.1%15.0%
15.1%20.0%
20.1%25.0%
25.1%30.0%
30.1%35.0%
35.1%Over
Num
ber
of P
rope
rtie
s
As of 03/31/20
Section 29 - Vacancy Rate Comparisons
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year
Norfolk/Hampton Roads 12.5% 12.0% 12.5% 11.5% 11.5% 10.8%
South Atlantic 9.3% 9.4% 9.3% 9.5% 9.3% 9.3%
United States 9.9% 9.9% 9.9% 10.0% 9.7% 9.6%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year
South Atlantic 25 24 22 24 19 22 18United States 80 65 59 65 52 56 48
1Q19 2Q19 3Q19 4Q19 1Q20
9.49.69.8
10.010.210.410.610.811.011.211.411.611.812.012.212.4
Quarterly Vacancy Rates
Norfolk/Hampton Roads
US
South Atlantic
%
Period ending 03/31/20
2015 2016 2017 2018 20199.0
9.5
10.0
10.5
11.0
11.5
12.0
Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends%
Period ending 12/31/19
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Section 30 - Nonanchor Rent Growth Comparisons and Forecast
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 0.2% - 0.2% 0.2% 0.3% 0.9% 1.2% - 1.6%
South Atlantic 0.1% 0.3% 0.1% 1.3% 1.8% 1.9% - 1.2%
United States 0.1% 0.1% 0.1% 1.2% 1.6% 1.7% - 1.3%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 25 12 21 12 21 20 22 21United States 80 38 62 38 66 60 59 58
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-8.0
-6.0
-4.0
-2.0
0.0
2.0
Norfolk/Hampton Roads
South Atlantic
US
Asking Rent Growth Rate Trends and Forecast%
Period ending 12/31/24
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Section 31 - Vacancy Rate Comparisons and Forecast
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 12.9% 12.7% 12.9% 12.4% 11.8% 11.1% 15.2%
South Atlantic 9.5% 9.6% 9.5% 9.6% 9.5% 9.7% 12.2%
United States 10.1% 10.2% 10.1% 10.2% 10.1% 10.1% 12.7%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 25 23 22 23 22 21 18 23United States 80 65 62 65 58 54 44 61
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
10.0
11.0
12.0
13.0
14.0
15.0Norfolk/Hampton Roads
South Atlantic
US
Vacancy Rate Trends and Forecast%
Period ending 12/31/24
Neighborhood and Community Shopping Centers
Section 32 - Metro Inventory Details
Inventory By Center Age Shopping Center Stock Traits
Year Built Percent
Before 1970 13.0%
1970-1979 20.0%
1980-1989 34.0%
1990-1999 19.0%
2000-2009 10.0%
After 2009 5.0%
All 100.0%
As of 03/31/20
MetroLow Mean Median High
Year Built 1958 1986 1986 2019Size (sq. ft.) 5,167 87,539 65,992 382,526
Distance to Highway (miles) 0 0.7 0.3 4.2Distance to CBD (miles) 2.7 12.4 10.7 36.8
Distance to Landmark (miles) 0.4 3.2 2.9 7.9As of 03/31/20 Landmark =Coast
Average Metro Lease Terms
Anchor/Nonanchor CRD % Free Rent
(mos)Expenses $
(Commercial)Lease Term
(yrs)Leasing
Commission %Tenant
Improvements $A - 6.2% 5.9 $ 2.80 9.3 10.5% $20.30N - 7.3% 5.3 $ 2.70 3.3 12.9% $20.60
As of 03/31/20
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Section 33 - Inventory Growth Comparisons
Inventory Growth Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Norfolk/Hampton Roads 0.0% 0.0% 0.0% 0.0% - 0.2% 0.2% 0.1%
South Atlantic 0.0% 0.1% 0.0% 0.3% 0.4% 0.5% 0.3%
United States 0.0% 0.1% 0.0% 0.3% 0.4% 0.4% 0.3%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 25 9 13 9 22 23 20 23United States 80 34 36 34 72 75 62 64
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-0.5
0.0
0.5
1.0
Norfolk/Hampton Roads
South Atlantic
US
Inventory Growth Comparisons and Forecast%
Period ending 12/31/24
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Section 34 - Construction/Absorption Change
Construction and Absorption
Quarterly
1Q20 4Q19 YTD Avg
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Norfolk/Hampton Roads 0 -62,000 0.0 0 -139,000 0.0 0 -62,000 0.0
South Atlantic 12,000 78,000 0.2 434,000 11,000 39.5 12,000 78,000 0.2Average over period ending: 03/31/20 03/31/20 03/31/20 12/31/19 12/31/19 12/31/19 03/31/20 03/31/20 03/31/20
Annualized
1 Year History 3 Year History 5 Year History
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Norfolk/Hampton Roads 34,000 -164,000 -0.2 11,000 -253,000 0.0 90,000 -136,000 -0.7
South Atlantic 2,108,000 2,420,000 0.9 3,289,000 1,841,000 1.8 3,542,000 3,312,000 1.1Average over period ending: 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19
Annualized
5 Year Forecast
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Norfolk/Hampton Roads 24,400 -56,000 -0.4
South Atlantic 1,702,600 -728,800 -2.3Average over period ending: 12/31/24 12/31/24 12/31/24
-600,000
-400,000
-200,000
0
200,000
Squ
are
Fee
t
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
5
10
15
Vac
ancy
Rat
e (%
)Construction/Absorption and Vacancy
Vacancy Rate Construction Absorption
Period ending 12/31/24
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Section 35 - Economic and Demographic Trends
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Norfolk/Hampton Roads South Atlantic US
Household Income Growth Trends and Forecast Metro vs. Region & U.S.
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Norfolk/Hampton Roads South Atlantic US
Total Employment Growth Trends and Forecast Metro vs. Region & U.S.
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.20%
0.40%
0.60%
0.80%
1.00%
Population Households
Norfolk/Hampton Roads Population/Household Growth Trends and Forecast
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
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Section 36 - Metro Area Map: Norfolk/Hampton Roads
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Neighborhood Shopping Centers
Section 37 - Metro Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 13,363,000 76,000 0.5% 1,388,000 10.4% 30 11,975,000 19,000 $15.37 2.3%
2016 Y 13,376,000 13,000 0.1% 1,355,000 10.1% -30 12,021,000 46,000 $15.51 0.9%
2017 Y 13,376,000 0 0.0% 1,614,000 12.1% 200 11,762,000 -259,000 $15.68 1.1%
2018 Q2 13,376,000 0 0.0% 1,861,000 13.9% 190 11,515,000 -252,000 $15.73 - 0.1%
2018 Q3 13,376,000 0 0.0% 1,800,000 13.5% -40 11,576,000 61,000 $15.83 0.6%
2018 Q4 13,350,000 0 - 0.2% 1,756,000 13.2% -30 11,594,000 18,000 $15.97 0.9%
2018 Y 13,350,000 0 - 0.2% 1,756,000 13.2% 110 11,594,000 -168,000 $15.97 1.8%
2019 Q1 13,309,000 0 - 0.3% 1,708,000 12.8% -40 11,601,000 7,000 $16.02 0.3%
2019 Q2 13,330,000 21,000 0.2% 1,720,000 12.9% 10 11,610,000 9,000 $16.12 0.6%
2019 Q3 13,343,000 13,000 0.1% 1,742,000 13.1% 20 11,601,000 -9,000 $16.11 - 0.1%
2019 Q4 13,343,000 0 0.0% 1,780,000 13.3% 20 11,563,000 -38,000 $16.07 - 0.2%
2019 Y 13,343,000 34,000 - 0.1% 1,780,000 13.3% 10 11,563,000 -31,000 $16.07 0.6%
2020 Q1 13,343,000 0 0.0% 1,773,000 13.3% 0 11,570,000 7,000 $16.09 0.1%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock% Population Pop%Chg Employment Emp%
Chg Households HH%Chg
Avg HHIncome
AHHI%Chg
2015 Y $12.75 2.3% 4.0 0.2% 1,721,050 0.2% 772,400 1.8% 659,080 0.7% $123,556 3.3%
2016 Y $12.89 1.1% 0.3 0.4% 1,723,540 0.1% 776,430 0.5% 662,660 0.5% $124,338 0.6%
2017 Y $13.03 1.1% 0.0 - 2.2% 1,724,930 0.1% 786,670 1.3% 665,150 0.4% $127,767 2.8%
2018 Q2 $13.06 - 0.2% 0.0 - 2.2% 1,725,470 0.0% 792,530 0.1% 666,290 0.1% $131,803 1.0%
2018 Q3 $13.16 0.8% 0.0 0.5% 1,725,980 0.0% 789,830 - 0.3% 666,880 0.1% $132,983 0.9%
2018 Q4 $13.27 0.8% 0.0 0.2% 1,726,640 0.0% 787,900 - 0.2% 667,830 0.1% $133,872 0.7%
2018 Y $13.27 1.8% 0.0 - 1.4% 1,726,640 0.1% 787,900 0.2% 667,830 0.4% $133,872 4.8%
2019 Q1 $13.33 0.5% 0.0 0.1% 1,727,510 0.1% 792,530 0.6% 669,310 0.2% $135,568 1.3%
2019 Q2 $13.41 0.6% 2.3 0.1% 1,728,640 0.1% 797,100 0.6% 671,000 0.3% $137,122 1.1%
2019 Q3 $13.39 - 0.1% -1.4 - 0.1% 1,730,040 0.1% 793,600 - 0.4% 672,800 0.3% $137,619 0.4%
2019 Q4 $13.36 - 0.2% 0.0 - 0.3% 1,731,790 0.1% 794,600 0.1% 674,510 0.3% $138,168 0.4%
2019 Y $13.36 0.7% -1.1 - 0.3% 1,731,790 0.3% 794,600 0.9% 674,510 1.0% $138,168 3.2%
2020 Q1 $13.39 0.2% 0.0 0.1% 1,733,760 0.1% 795,060 0.1% 675,950 0.2% $138,542 0.3%
Metro Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 451075682
Community Shopping Centers
Section 38 - Metro Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 13,405,000 230,000 1.7% 1,332,000 9.9% 130 12,073,000 33,000 $15.82 1.0%
2016 Y 13,503,000 98,000 0.7% 1,451,000 10.7% 80 12,052,000 -21,000 $16.16 2.1%
2017 Y 13,503,000 0 0.0% 1,638,000 12.1% 140 11,865,000 -187,000 $16.27 0.7%
2018 Q2 13,357,000 0 0.0% 1,614,000 12.1% 110 11,743,000 -143,000 $16.26 - 0.2%
2018 Q3 13,357,000 0 0.0% 1,491,000 11.2% -90 11,866,000 123,000 $16.32 0.4%
2018 Q4 13,357,000 0 0.0% 1,472,000 11.0% -20 11,885,000 19,000 $16.44 0.7%
2018 Y 13,357,000 0 - 1.1% 1,472,000 11.0% -110 11,885,000 20,000 $16.44 1.0%
2019 Q1 13,357,000 0 0.0% 1,482,000 11.1% 10 11,875,000 -10,000 $16.50 0.4%
2019 Q2 13,357,000 0 0.0% 1,492,000 11.2% 10 11,865,000 -10,000 $16.53 0.2%
2019 Q3 13,357,000 0 0.0% 1,504,000 11.3% 10 11,853,000 -12,000 $16.48 - 0.3%
2019 Q4 13,357,000 0 0.0% 1,605,000 12.0% 70 11,752,000 -101,000 $16.44 - 0.2%
2019 Y 13,357,000 0 0.0% 1,605,000 12.0% 100 11,752,000 -133,000 $16.44 0.0%
2020 Q1 13,357,000 0 0.0% 1,674,000 12.5% 50 11,683,000 -69,000 $16.46 0.1%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock% Population Pop%Chg Employment Emp%
Chg Households HH%Chg
Avg HHIncome
AHHI%Chg
2015 Y $13.20 1.1% 7.0 0.3% 1,721,050 0.2% 772,400 1.8% 659,080 0.7% $123,556 3.3%
2016 Y $13.50 2.3% -4.7 - 0.2% 1,723,540 0.1% 776,430 0.5% 662,660 0.5% $124,338 0.6%
2017 Y $13.58 0.6% 0.0 - 1.6% 1,724,930 0.1% 786,670 1.3% 665,150 0.4% $127,767 2.8%
2018 Q2 $13.58 - 0.3% 0.0 - 1.2% 1,725,470 0.0% 792,530 0.1% 666,290 0.1% $131,803 1.0%
2018 Q3 $13.64 0.4% 0.0 1.0% 1,725,980 0.0% 789,830 - 0.3% 666,880 0.1% $132,983 0.9%
2018 Q4 $13.74 0.7% 0.0 0.2% 1,726,640 0.0% 787,900 - 0.2% 667,830 0.1% $133,872 0.7%
2018 Y $13.74 1.2% 0.0 0.2% 1,726,640 0.1% 787,900 0.2% 667,830 0.4% $133,872 4.8%
2019 Q1 $13.80 0.4% 0.0 - 0.1% 1,727,510 0.1% 792,530 0.6% 669,310 0.2% $135,568 1.3%
2019 Q2 $13.83 0.2% 0.0 - 0.1% 1,728,640 0.1% 797,100 0.6% 671,000 0.3% $137,122 1.1%
2019 Q3 $13.79 - 0.3% 0.0 - 0.1% 1,730,040 0.1% 793,600 - 0.4% 672,800 0.3% $137,619 0.4%
2019 Q4 $13.75 - 0.3% 0.0 - 0.9% 1,731,790 0.1% 794,600 0.1% 674,510 0.3% $138,168 0.4%
2019 Y $13.75 0.1% 0.0 - 1.1% 1,731,790 0.3% 794,600 0.9% 674,510 1.0% $138,168 3.2%
2020 Q1 $13.77 0.1% 0.0 - 0.6% 1,733,760 0.1% 795,060 0.1% 675,950 0.2% $138,542 0.3%
Metro Trend FuturesRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 461075682
Neighborhood and Community Shopping Centers
Section 39 - Metro Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 26,768,000 306,000 1.1% 2,720,000 10.2% 80 24,048,000 52,000 $15.59 1.6%
2016 Y 26,879,000 111,000 0.4% 2,806,000 10.4% 20 24,073,000 25,000 $15.84 1.6%
2017 Y 26,879,000 0 0.0% 3,252,000 12.1% 170 23,627,000 -446,000 $15.98 0.9%
2018 Q2 26,733,000 0 0.0% 3,475,000 13.0% 150 23,258,000 -395,000 $15.99 - 0.2%
2018 Q3 26,733,000 0 0.0% 3,291,000 12.3% -70 23,442,000 184,000 $16.07 0.5%
2018 Q4 26,707,000 0 - 0.1% 3,228,000 12.1% -20 23,479,000 37,000 $16.20 0.8%
2018 Y 26,707,000 0 - 0.6% 3,228,000 12.1% 0 23,479,000 -148,000 $16.20 1.4%
2019 Q1 26,666,000 0 - 0.2% 3,190,000 12.0% -10 23,476,000 -3,000 $16.26 0.4%
2019 Q2 26,687,000 21,000 0.1% 3,212,000 12.0% 0 23,475,000 -1,000 $16.32 0.4%
2019 Q3 26,700,000 13,000 0.0% 3,246,000 12.2% 20 23,454,000 -21,000 $16.29 - 0.2%
2019 Q4 26,700,000 0 0.0% 3,385,000 12.7% 50 23,315,000 -139,000 $16.25 - 0.2%
2019 Y 26,700,000 34,000 0.0% 3,385,000 12.7% 60 23,315,000 -164,000 $16.25 0.3%
2020 Q1 26,700,000 0 0.0% 3,447,000 12.9% 20 23,253,000 -62,000 $16.28 0.2%
2020 Y 26,700,000 0 0.0% 4,005,000 15.0% 230 22,695,000 -620,000 $14.94 - 8.1%
2021 Y 26,700,000 0 0.0% 4,192,000 15.7% 70 22,508,000 -187,000 $14.72 - 1.5%
2022 Y 26,730,000 30,000 0.1% 4,254,000 15.9% 20 22,476,000 -32,000 $14.74 0.1%
2023 Y 26,776,000 46,000 0.2% 4,032,000 15.1% -80 22,744,000 268,000 $14.82 0.5%
2024 Y 26,822,000 46,000 0.2% 3,787,000 14.1% -100 23,035,000 291,000 $15.00 1.2%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock% Population Pop%Chg Employment Emp%
Chg Households HH%Chg
Avg HHIncome
AHHI%Chg
2015 Y $12.97 1.6% 5.9 0.2% 1,721,050 0.2% 772,400 1.8% 659,080 0.7% $123,556 3.3%
2016 Y $13.19 1.7% 4.4 0.1% 1,723,540 0.1% 776,430 0.5% 662,660 0.5% $124,338 0.6%
2017 Y $13.31 0.9% 0.0 - 1.9% 1,724,930 0.1% 786,670 1.3% 665,150 0.4% $127,767 2.8%
2018 Q2 $13.32 - 0.2% 0.0 - 1.7% 1,725,470 0.0% 792,530 0.1% 666,290 0.1% $131,803 1.0%
2018 Q3 $13.40 0.6% 0.0 0.8% 1,725,980 0.0% 789,830 - 0.3% 666,880 0.1% $132,983 0.9%
2018 Q4 $13.51 0.8% 0.0 0.2% 1,726,640 0.0% 787,900 - 0.2% 667,830 0.1% $133,872 0.7%
2018 Y $13.51 1.5% 0.0 - 0.6% 1,726,640 0.1% 787,900 0.2% 667,830 0.4% $133,872 4.8%
2019 Q1 $13.57 0.4% 0.0 0.0% 1,727,510 0.1% 792,530 0.6% 669,310 0.2% $135,568 1.3%
2019 Q2 $13.62 0.4% -21.0 0.0% 1,728,640 0.1% 797,100 0.6% 671,000 0.3% $137,122 1.1%
2019 Q3 $13.59 - 0.2% -0.6 - 0.1% 1,730,040 0.1% 793,600 - 0.4% 672,800 0.3% $137,619 0.4%
2019 Q4 $13.55 - 0.3% 0.0 - 0.6% 1,731,790 0.1% 794,600 0.1% 674,510 0.3% $138,168 0.4%
2019 Y $13.55 0.3% -0.2 - 0.7% 1,731,790 0.3% 794,600 0.9% 674,510 1.0% $138,168 3.2%
2020 Q1 $13.58 0.2% 0.0 - 0.3% 1,733,760 0.1% 795,060 0.1% 675,950 0.2% $138,542 0.3%
2020 Y $11.89 -12.3% 0.0 - 2.7% 1,740,460 0.5% 774,640 - 2.5% 677,860 0.5% $137,524 - 0.5%
2021 Y $11.71 - 1.5% 0.0 - 0.8% 1,749,600 0.5% 781,880 0.9% 681,710 0.6% $140,976 2.5%
2022 Y $11.89 1.5% -0.9 - 0.1% 1,758,370 0.5% 797,510 2.0% 687,630 0.9% $147,490 4.6%
2023 Y $12.10 1.8% 0.2 1.2% 1,766,800 0.5% 805,130 1.0% 693,900 0.9% $152,529 3.4%
2024 Y $12.28 1.5% 0.2 1.3% 1,775,590 0.5% 807,490 0.3% 699,890 0.9% $157,215 3.1%
Copyright 2020 Reis, Inc.
Submarket Overview
Submarket OverviewRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 481075682
Section 40 - Submarket Overview
Submarket Anchor/Nonanchor
Inventory(Buildings)
Inventory(Sq Ft)
AskingRent $ CRD % Vac
%
FreeRent(mos)
Expenses $(Commercial)
LeaseTerm(yrs)
LeasingCommission
%
TenantImprovements
$
Portsmouth/Suffolk A 26 2,332,000 $ 7.74 - 4.5% 15.2% 6.5 $ 4.05 9.0 10.8% $17.98
Portsmouth/Suffolk N 31 1,354,000 $13.97 - 5.0% 15.8% 4.7 $ 4.03 3.7 11.8% $16.05
Norfolk/Chesapeake A 49 3,677,000 $10.32 - 7.3% 13.4% 5.0 $ 2.22 10.2 10.9% $22.62
Norfolk/Chesapeake N 67 2,947,000 $16.96 - 7.9% 19.6% 4.9 $ 2.14 2.7 14.0% $23.23
Kempsville/Bayside A 47 2,591,000 $11.30 - 6.9% 12.1% 5.0 $ 2.04 10.8 11.5% $22.67
Kempsville/Bayside N 62 2,397,000 $17.19 - 7.7% 9.2% 4.7 $ 2.04 2.9 13.5% $20.68
Lynnhaven/Oceana A 18 1,627,000 $ 9.94 - 4.8% 4.4% 3.3 $ 3.03 5.3 10.8% $24.90
Lynnhaven/Oceana N 29 1,787,000 $20.41 - 5.0% 5.9% 3.3 $ 3.03 3.8 14.3% $25.62
Nwprt. News/Hampton A 37 2,889,000 $ 8.87 - 7.7% 16.3% 7.8 $ 2.10 11.4 9.7% $15.13
Nwprt. News/Hampton N 49 2,387,000 $13.65 - 8.7% 13.6% 7.3 $ 2.10 4.2 12.1% $17.92
Wmsbg./Glcster./York A 20 1,613,000 $ 9.48 - 3.7% 9.1% 7.9 $ 4.85 5.3 8.5% $18.75
Wmsbg./Glcster./York N 29 1,099,000 $16.00 - 7.9% 14.3% 7.1 $ 4.54 2.2 9.5% $16.13
Copyright 2020 Reis, Inc.
New Construction Listing
New Construction ListingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsAs of 31-Mar-2020CustomerID:1075682
Copyright 2020 Reis, Inc. Page 501075682
Section 41 - Construction Deliveries
Completed SF SF Under Construction Totals Planned Proposed Totals
2019 YTD 2020 2020 2021 and Later 2019 and LaterNeighborhood 33,600 0 0 0 33,600 124,637 43,860 168,497
Community 0 0 0 0 0 0 120,000 120,000Power Center 0 0 0 0 0 0 225,000 225,000
Regional 0 0 0 0 0 0 0 0Mixed Use 0 0 0 0 0 750,000 25,600 775,600
Other 444,000 0 0 0 444,000 0 0 0Totals 477,600 0 0 0 477,600 874,637 414,460 1,289,097
Section 42 - Metro Construction Breakdown
6.9 %
43.9 %
11.4 %
25.1 %
12.7 %
Metro Construction by Project Type 2019 and Later
CommunityMixed UseNeighborhoodOtherPower CenterRegional
78.3 %
7.9 %
7.1 %
6.8 %
Metro Construction by Top Five Submarket Share 2019 and Later
Norfolk/ChesapeakeKempsville/BaysideNwprt. News/HamptonWmsbg./Glcster./York
Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have afirm completion date.
Section 43 - Submarket New Construction Project Tally
1. Completed 2. Under Construction 3. Planned/Proposed
Submarket Neigh/Comm
Power/Reg. Other Neigh/
CommPower/Reg. Other Neigh/
CommPower/Reg. Other Grand
Total
Norfolk/Chesapeake 21,000 0 331,000 0 0 0 30,000 225,000 775,600 1,382,600
Kempsville/Bayside 12,600 0 113,000 0 0 0 13,860 0 0 139,460
Nwprt. News/Hampton 0 0 0 0 0 0 124,637 0 0 124,637
Wmsbg./Glcster./York 0 0 0 0 0 0 120,000 0 0 120,000
New Construction ListingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsAs of 31-Mar-2020CustomerID:1075682
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Neighborhood and Community Shopping Centers
Section 44 - Metro Inventory Details
Inventory By Center Age
Year Built Percent
Before 1970 13.0%
1970-1979 20.0%
1980-1989 34.0%
1990-1999 19.0%
2000-2009 10.0%
After 2009 5.0%
All 100.0%
As of 03/31/202015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-0.5
0.0
0.5
1.0
Norfolk/Hampton Roads South Atlantic US
Retail Inventory Growth Trend and Forecast%
Section 45 - Inventory Growth Rankings Forecast
South Atlantic Region Cumulative Inventory Growth Forecast Ranking 2020 and Later National Cumulative Inventory Growth Forecast Ranking 2020 and Later
Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast RankMiami 2.9% 1
Columbia 0.7% 21
Suburban Maryland 0.6% 22
Norfolk/Hampton Roads 0.5% 23
Lexington 0.0% 24
Knoxville 0.0% 25
Knoxville 0.0% 25
Austin 3.8% 1
Fairfield County 0.5% 62
New Haven 0.5% 63
Norfolk/Hampton Roads 0.5% 64
Tulsa 0.4% 65
Oklahoma City 0.4% 66
Little Rock 0.0% 80
Section 46 - Construction/Absorption Change
Construction and Absorption
Quarterly
1Q20 4Q19 YTD Avg
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Norfolk/Hampton Roads 0 -62,000 0.0 0 -139,000 0.0 0 -62,000 0.0
South Atlantic 97,000 161,000 0.6 445,000 18,000 24.7 97,000 161,000 0.6Average over period ending: 03/31/20 03/31/20 03/31/20 12/31/19 12/31/19 12/31/19 03/31/20 03/31/20 03/31/20
Annualized
1 Year History 3 Year History 5 Year History
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Norfolk/Hampton Roads 34,000 -164,000 -0.2 11,000 -253,000 0.0 90,000 -136,000 -0.7
South Atlantic 2,108,000 2,420,000 0.9 3,289,000 1,841,000 1.8 3,542,000 3,312,000 1.1Average over period ending: 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19
New Construction ListingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsAs of 31-Mar-2020CustomerID:1075682
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Section 47 - Occupancy at Completion
0
20
40
60
80
100
Occ
upan
cy (
%)
2014 2015 2016 2017 2018 2019 2020
Occupancy at Completion Comparisons
Norfolk/Hampton RoadsOverall Occupancy
Norfolk/Hampton RoadsOccupancy at Completion
South Atlantic Occupancy at Completion US Occupancy at Completion
Occupancy at Completion ComparisonsProperties Built in: 2014 2015 2016 2017 2018 2019 2020
Norfolk/Hampton Roads 53.4% 94.9% 58.2% n/a n/a 91.5% n/aSouth Atlantic 76.2% 86.4% 88.6% 83.5% 68.6% 75.3% n/aUnited States 61.9% 80.5% 74.7% 64.6% 72.9% 76.3% 61.9%*Occupation at completion is calculated for all properties completed during each individual calendar year
Section 48 - Stabilization Data
0 1 2 3 4 5 6 7 80.0
10.0
20.0
30.0
40.0
2014 2015 2016 2017 2018 2019 2020 Long Term Metro Vacancy Average
New Construction Quarters to Stabilization
Quarters After Completion
Vac
ancy
(%
)
%
Stabilization Data
Construction Year: 2014 2015 2016 2017 2018 2019 2020 YTD
No.of Properties Tracked 3 2 2 2
Properties Stabilized 0-4 Quarters After Completion 3 2 2 2Properties Stabilized 5-8 Quarters After Completion 0 0 0 0Properties Stabilized 9-12 Quarters After Completion 0 0 0 0Properties Stabilized 13+ Quarters After Completion 0 0 0 0Properties That Have Not Yet Stabilized 0 0 0 0
Stabilization is reached when the average vacancy of the properties built in any given year equals or is less than the metro's average overall vacancy for the last five years. "0" in theQuarters After Completion chart above represents the vacancy at completion.
New Construction ListingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsAs of 31-Mar-2020CustomerID:1075682
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Section 49 - Metro Area Map: Norfolk/Hampton Roads
Completed Projects Under Construction Planned/Proposed
New Construction ListingRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsAs of 31-Mar-2020CustomerID:1075682
Copyright 2020 Reis, Inc. Page 541075682
Section 50 - New Construction Listing
No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
Submarket: Kempsville/Bayside
1Diamond Springs Center Ph 11808 DIAMOND SPRINGS RD VIRGINIABEACH, VA 23455
10-07-2019 Neighborhood Virginia Beach 13,860 Proposed
2
Little Neck Retail Development3229 Virginia Beach Blvd Virginia Beach, VA23452
Leasing Agent Name: Troy ParkerLeasing Agent Phone: (757) 222 - 0111Leasing Agent Company: Parker Burnell RealEstate
08-20-2019 Neighborhood Virginia Beach 12,600 1 1 8/2019 Complete
3
WegmansUS-58 E & Independence Blvd Virginia Beach,VA 23462
Developer Phone: (757) 486-1122Developer Company: SIFEN INC
04-04-2019 Freestanding Virginia Beach 113,000 1 5/2018 3/2019 Complete
Submarket: Norfolk/Chesapeake
4
Burton CrossingNorthampton Blvd & I-64 Norfolk, VA 23502
Developer Phone: (757) 627 - 8611Developer Company: S.L NUSBAUM
08-14-2018 Mixed Use Norfolk 250,000 Planned
5
Northampton Boulevard5900 Northampton Blvd Norfolk, VA 23502
Developer Name: Sandy CohenDeveloper Phone: (757) 335 - 1144Developer Company: Benna Victor
07-31-2019 Mixed Use Norfolk 25,600 4 Proposed
6
The Shops at Lake Wright6290 Northampton Boulevard Norfolk, VA 23502
Developer Name: Gary GilbertDeveloper Phone: (717) 578 - 0211Developer Company: Apple Retail
05-29-2019 Neighborhood Norfolk 21,000 2 1 6/2018 5/2019 Complete
7
IkeaInterstate 64 HOV LN & Northampton BlvdNorfolk, VA 23502
Owner Name: JOSEPH ROTHOwner Phone: (610) 834 - 0180Owner Company: IKEA
04-30-2019 Freestanding Norfolk 331,000 1 1 1/2018 4/2019 Complete
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
8
Palace Station Ph 2300 W 21ST ST NORFOLK, VA 23517
Developer Name: MICHELLEDeveloper Phone: (757) 625 - 2595
02-11-2019 Neighborhood Norfolk 30,000 1 1 Proposed
9
Edinburgh Shopping Center West Ph 2BATTLEFIELD BLVD @ HILLCREST PKWYCHESAPEAKE, VA 23322
Developer Name: BRUCE BRULLINDeveloper Phone: (757) 651 - 1467Developer Company: PRECON DEVELOPMENT
01-27-2020 Power Center Chesapeake 225,000 Proposed
10
Summit Pointe Future RetailVOLVO PKWY @ CROSSWAYS BLVDCHESAPEAKE, VA 23320
Developer Name: BOB SASSERDeveloper Phone: (757) 321 - 5000Developer Company: DOLLAR TREEPROPERTIES
01-17-2020 Mixed Use Chesapeake 500,000 Planned
Submarket: Nwprt. News/Hampton
11 Kroger1120 W Mercury Blvd Hampton, VA 23666
01-27-2020 Neighborhood Hampton 124,637 1 Planned
Submarket: Wmsbg./Glcster./York
12
The Shops at High Street Ph 21430 HIGH ST WILLIAMSBURG, VA 23185
Developer Name: ROB WRIGHTDeveloper Phone: (757) 873 - 2900
12-04-2018 Community Williamsburg 120,000 6 2 Proposed
Copyright 2020 Reis, Inc.
Sales Trend
Sales TrendRetail - 1Q 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 571075682
1Q 2020 Metro Statistics Metro Statistics - 12 Month RollingMean Median 25th Percentile Mean Median 75th Percentile
Cap Rate 4.1% 3.8% 4.3% 7.4% 6.3% 8.0%Total Size (SF) 60,672 62,000 21,558 105,749 50,725 114,309Sale Price $12,237,709 $13,130,539 $3,413,750 $17,621,875 $11,093,231 $18,150,000Price/SF (Area Purchased) $202 $179 $137 $179 $179 $244Number of Floors 1 1 1 1 1 1Year Built 2002 2003 1998 1999 2004 2008
Submarkets1. Portsmouth/Suffolk
2. Norfolk/Chesapeake
4. Kempsville/Bayside
5. Lynnhaven/Oceana
6. Newport News/Hampton
7. Williamsburg/Gloucester/York
Most Recent Transactions
City, State SubmarketYearBuilt Type
Price Per SqFt Range Sale Date
Reis SalesComparables
Number
1. Norfolk, VA Norfolk/Chesapeake 1964 Neighborhood Ctr. $150 - $199 Q2 2020 60118742. Virginia Beach, VA Lynnhaven/Oceana 2004 Restaurant n/a Q2 2020 59981183. Hampton, VA Nwprt. News/Hampton 2001 Gas Station/Repair Garage $700 - $799 Q2 2020 60065984. Chesapeake, VA Norfolk/Chesapeake 1999 Neighborhood Ctr. n/a Q1 2020 59467585. Virginia Beach, VA Kempsville/Bayside 2005 Neighborhood Ctr. n/a Q1 2020 59823376. Virginia Beach, VA Kempsville/Bayside 2005 Neighborhood Ctr. n/a Q1 2020 59467597. Chesapeake, VA Norfolk/Chesapeake 1999 Neighborhood Ctr. n/a Q1 2020 59823318. Norfolk, VA Norfolk/Chesapeake 1987 n/a Q1 2020 59498199. Newport News, VA Nwprt. News/Hampton 2015 Gas Station/Repair Garage $600 - $699 Q1 2020 596014810. Virginia Beach, VA Norfolk/Chesapeake 2000 Freestanding Retail Bldg. n/a Q1 2020 595119711. Hampton, VA Nwprt. News/Hampton 1962 $125 - $149 Q1 2020 596696112. Hampton, VA Nwprt. News/Hampton 1966 $75 - $99 Q1 2020 596686913. Norfolk, VA Norfolk/Chesapeake 2007 Neighborhood Ctr. n/a Q1 2020 599134514. Virginia Beach, VA Lynnhaven/Oceana 1985 Mixed-Use/Downtown/Other n/a Q1 2020 592196815. Chesapeake, VA Norfolk/Chesapeake 2018 Gas Station/Repair Garage $1,600 - $1,799 Q1 2020 592786316. Virginia Beach, VA Lynnhaven/Oceana 1981 Restaurant n/a Q1 2020 592235417. Newport News, VA Nwprt. News/Hampton 1996 Anchor Attached to Existing Ctr. n/a Q1 2020 595833218. Norfolk, VA Norfolk/Chesapeake n/a Restaurant $450 - $524 Q1 2020 592789419. Suffolk, VA Outside Delineated Submarkets 1996 Restaurant $525 - $599 Q1 2020 593709720. Hampton, VA Nwprt. News/Hampton 2010 Neighborhood Ctr. n/a Q4 2019 5918767
For details on the transactions listed above, click on the Sales Comparables number link. For historical transactions ortransactions in another Reis market, please go to the Sales Comparables section of the Reis website. www.Reis.com
Sales TrendRetail - 1Q 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 581075682
Property Location and Physical Characteristics
Property Name Gainsborough Square Property Type Neighborhood Ctr.
Address 109 GAINSBOROUGH SQ Bldg. Area/Area Purchased (SF) 88,838GLA / 88,838GLA
City Chesapeake Anchor/Nonanchor Space (SF) 44,874 / 43,964
State/ZIP/County VA / 23320 / Chesapeake No. of Bldgs./Floors 3 / 1
Metro (Submarket) Norfolk/Hampton Roads (Norfolk/Chesapeake) Year Built/Renovated 1999 / --
Comments
Sale Details and Analysis
Sale Date Mar 2020 Reis Cap Rate Analysis ProformaSale Price $15,167,846 APD All per square foot figures are on an annual basis
Sale Price PSF $171 Total Rentable Area Assumption --
Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --
Seller 1. Armada/Hoffler Charleston Association / 1 Columbus Ctr, Ste700, Virginia Beach, VA 23462
Effective Rent Revenue --
Expense Reimbursements --
Free Rent Concessions --Credit Loss --
Buyer 1. Slate Retail REIT / (416) 644-4264 / 121 King St W, Ste 200,Toronto, ON M5H 3T9
Additional Income --
Effective Gross Revenue --Operating Expenses --
Capital Reserve --Net Operating Income --
Comments Est Going-in Cap Rate/EGIM -- / --
12-Month Rolling Metro Cap Rate 5.5% [Q1 2020]Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Parking Spaces
Buyer's Broker Key Tenants Ben Cooper JewelersPirate's Cove RestauThe UPS StoreSupercutsJuice Bar & CafeAnytime FitnessOsaka Ramen & SushiFood LionRite Aid
Other Broker
Interest Purchased
Lot Size 441,872 SF / 10.144 Acres
Parcels Number 0370000003710
Deed Reference
Time on Market
Financing Details
Other:
Sales TrendRetail - 1Q 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 591075682
Property Location and Physical Characteristics
Property Name Gainsborough Square Property Type Neighborhood Ctr.
Address 109 Gainsborough Sq Bldg. Area/Area Purchased (SF) 88,838GLA / 88,838GLA
City Chesapeake Anchor/Nonanchor Space (SF) 44,874 / 43,964
State/ZIP/County VA / 23320 / Chesapeake City No. of Bldgs./Floors 3 / 1
Metro (Submarket) Norfolk/Hampton Roads (Norfolk/Chesapeake) Year Built/Renovated 1999 / --
Comments
Sale Details and Analysis
Sale Date 11 Mar 2020Rec Reis Cap Rate Analysis ProformaSale Price $15,171,943 APD All per square foot figures are on an annual basis
Sale Price PSF $171 Total Rentable Area Assumption --
Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --
Seller 1. Armada Hoffler / (757) 366-4000 / 222 Central Park Ave, Ste2100, Virginia Beach, VA 234622. ARMADA/HOFFLER CHARLESTON ASSOCIATES
Effective Rent Revenue --
Expense Reimbursements --
Free Rent Concessions --Credit Loss --
Buyer 1. Slate Retail REIT / (416) 644-4264 / 121 King St W, Ste 200,Toronto, ON M5H 3T9
Additional Income --
Effective Gross Revenue --Operating Expenses --
Capital Reserve --Net Operating Income --
Comments Part of a $106,500,000 million portfolio sale, totaling 623,770 SF.Sale includes 6 other retail properties across 3 states.
Est Going-in Cap Rate/EGIM -- / --
12-Month Rolling Metro Cap Rate 5.5% [Q1 2020]Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Parking Spaces
Buyer's Broker Key Tenants Food Lion 44874 SFRite Aid 11200 SFBen Cooper JewelersPirate's Cove Restau 4800 SFThe UPS Store 1600 SFJuice Bar & CafeSupercuts 1600 SF
Other Broker
Interest Purchased
Lot Size 441,873 SF / 10.144 Acres
Parcels Number 0370000003710
Deed Reference
Time on Market
Financing Details
Other:
Sales TrendRetail - 1Q 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 601075682
Property Location and Physical Characteristics
Property Name Little Creek Marketplace Property Type Neighborhood Ctr.
Address 7870 Tidewater Dr Bldg. Area/Area Purchased (SF) 49,161GLA / 49,161GLA
City Norfolk Anchor/Nonanchor Space (SF) 0 / 49,161
State/ZIP/County VA / 23505 / Norfolk City No. of Bldgs./Floors 5 / 1
Metro (Submarket) Norfolk/Hampton Roads (Norfolk/Chesapeake) Year Built/Renovated 2007 / --
Comments
Sale Details and Analysis
Sale Date 21 Jan 2020 Reis Cap Rate Analysis ProformaSale Price $17,100,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis
Sale Price PSF $348 Total Rentable Area Assumption 49,161 SF
Vacancy at Sale 3.0% (excludes sublease) Potential Rent Revenue $878,075Vacancy Loss/Rate ($64,705) [ 7.4%]
($17.89 Shop Rent x 3,616 SF+ $11.11 Anch Rent x 0 SF)
Seller 1. Little Tidewater Associates LLC / 440 Monticello Ave, Ste 1700,Wells Fargo Center, Norfolk, VA 23456
Effective Rent Revenue $813,370$17.86 In Place Rent x 45,545 SF
Expense Reimbursements $93,016 [$1.89 PSF]($2.92 PSF Exp. x 0.70 Reimb. Ratio
x 45,545 SF)
Free Rent Concessions ($18,784) [$0.38 PSF]Credit Loss ($8,781) [ 1.0%]
Buyer 1. SWNC I LLC / 1616 2nd Ave S, Ste 100, Birmingham, AL 352332. SWNC-Little CRK LLC
Additional Income $0 [$0.00 PSF]
Effective Gross Revenue $878,822Operating Expenses ($143,432) [$2.92 PSF]
Capital Reserve ($4,916) [$0.10 PSF]Net Operating Income $730,474
Comments Est Going-in Cap Rate/EGIM 4.3% / --Based on Sale Price of $17,100,000
12-Month Rolling Metro Cap Rate 5.5% [Q1 2020]Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Parking Spaces
Buyer's Broker Key Tenants Applebee'sJersey Mike's SubsVirginia ABCFuddruckersWingstopGreat WallCricket Wireless AutLj Nail SpaTropical Smoothie CaVerizon Authorized R
Other Broker
Interest Purchased
Lot Size 211,701 SF / 4.86 Acres
Parcels Number 50000542
Deed Reference 1392
Time on Market
Financing Details
Other:
Copyright 2020 Reis, Inc.
Power Center Report
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 621075682
Section 55 - Current Rent Snapshot
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Power Center Community Neighborhood
Norfolk/Hampton Roads Non-Anchor Asking Rent Growth
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Norfolk/Hampton Road South Atlantic United States
Power Center Non-Anchor Asking Rent Growth
Norfolk/Hampton Roads Non-Anchor Asking Rent Comparisons Power Center Non-Anchor Asking Rent Comparisons
1Q 2020 1Q 2019 Annual Rent Growth
Power Centers $21.30 $21.30 0.0%
Neighborhood Centers $16.09 $16.02 0.4%
Community Centers $16.46 $16.50 - 0.2%
1Q 2020 1Q 2019 Annual Rent Growth
Norfolk/Hampton Roads $21.30 $21.30 0.0%
South Atlantic Region $27.69 $27.22 1.7%
United States $28.59 $28.20 1.4%
Section 56 - Current Vacancy Snapshot
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
7.0
8.0
9.0
10.0
11.0
12.0
13.0
Power Center Community Neighborhood
Norfolk/Hampton Roads Vacancy Rate by Center Type
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
5.5
6.0
6.5
7.0
7.5
Norfolk/Hampton Road South Atlantic United States
Power Center Vacancy Rate by Region
Norfolk/Hampton Roads Vacancy Rate by Center Type Power Center Vacancy Rate Comparisons
1Q 2020 1Q 2019 Annual Vac. Change
Power Centers 7.7% 7.3% 0.4%
Community 12.5% 11.1% 1.4%
Neighborhood 13.3% 12.8% 0.5%
1Q 2020 1Q 2019 Annual Vac. Change
Norfolk/Hampton Roads 7.7% 7.3% 0.4%
South Atlantic Region 5.7% 5.8% - 0.1%
United States 6.5% 6.4% 0.1%
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 631075682
Section 57 - New Construction
6.9 %
43.9 %
11.4 %
25.1 %
12.7 %
Norfolk/Hampton Roads New Construction - 2019 and Later
CommunityMixed UseNeighborhoodOtherPower CenterRegional
Completed SF SF Under Construction Totals Planned Proposed Totals
2019 YTD 2020 2020 2021 and Later 2019 and LaterNeighborhood 33,600 0 0 0 33,600 124,637 43,860 168,497
Community 0 0 0 0 0 0 120,000 120,000Power Center 0 0 0 0 0 0 225,000 225,000
Regional 0 0 0 0 0 0 0 0Mixed Use 0 0 0 0 0 750,000 25,600 775,600
Other 444,000 0 0 0 444,000 0 0 0Totals 477,600 0 0 0 477,600 874,637 414,460 1,289,097
As of 31-Mar-2020Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have afirm completion date.
Section 58 - Metro Power Center and Regional Mall Projects
Type Property Name Street Address City County Year Size Status
P Edinburgh Shopping Center West Ph BATTLEFIELD BLVD @ HILLCREST PK CHESAPEAKE Chesapeake 225,000 Proposed
Types: R=Regional/Super Regional Malls P=Power Centers
Section 59 - Cap Rate Trending
Norfolk/Hampton Roads Retail Cap RatesMetro Statistics - 12 Month Rolling (All Retail Types)
Mean MedianCap Rate N/A N/ASale Price $17,333,967 $11,093,231Price/SF (Area Purchased) $179 $179
4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
Community CtrFreestanding
Neighborhood CtrRegl/Super Regl Mall
Power Center
US Retail Average Cap Rates by Center Type
US Average Transaction Data12 Month Rolling
Power Centers Regional MallsCap Rate 8.7% 16.4%Sale Price $35,397,819 $35,164,687Price/SF (Area Purchased) $152 $77
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 641075682
Section 60 - Recent Metro Area Regional Mall Sales
Date Type Property Name CityArea
Purchased ofTotal (SF)
Price Price/SF Seller Buyer
Sep-19 PLandstown Commons ShoppingCenter (portion) Virginia Beach 419089 / 505699 $87,000,000 $207.59 Divaris Real Estate Inc
Acadia Realty Trust/LandstownCommons Owner LLC
Mar-18 PBed Bath & Beyond @Yoder PlazaShopping Center Newport News 41984 / 41984 $4,359,074 $103.83 Triple B Newport News Trust BBB Newport News LLC
Feb-18 R Chesapeake Square Mall (portion) Chesapeake 703633 / 803633 $12,900,000 $18.33JPMCC 2004-LN2 ChesapeakeSq M
Kotarides Holdings/KH WesternBranch LLC
Jan-18 P JANAF Shopping Center Norfolk 913974 / 913974 $85,650,000 $93.71McKinley Inc/JANAF ShopsLLC/JANAF Shopping Center
Wheeler Real Estate InvestmentTrust Inc/WHLR-JANA
Jan-18 P Crossways Shopping Center Chesapeake 371735 / 371735 $19,900,000 $53.53Schottenstein PropertyGroup/JLP-Chesapeake LLC
Ultimate Retail Realty LLC
Types: R=Regional/Super Regional Malls P=Power Centers
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 651075682
Section 61 - Metro Area Power Center and Regional Malls: Norfolk/Hampton Roads
Recently completed, under construction, planned or proposed Existing center
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 661075682
Section 62 - Metro Area Power Center and Regional Malls
Id Name City YearBuilt Size Type Id Name City Year
Built Size Type
1 Edinburgh Shopping Center West Ph 2 CHESAPEAKE 225,000 P 13 Yoder Plaza Shopping Center NEWPORT NEWS 1996 400,000 P
2 Crossways Shopping Center Chesapeake 1990 355,811 P 14 Greenbrier Market Center CHESAPEAKE 1996 480,000 P
3 Sams Club Plaza VIRGINIA BEACH 1962 340,000 P 15 Fox Mill Centre GLOUCESTER 2002 296,000 P
4 Pembroke Mall Virginia Beach 1967 658,500 R 16 Power Plant of Hampton Roads HAMPTON 2002 635,000 P
5 Greenbrier Mall CHESAPEAKE 2005 897,626 R 17 Red Mill Commons Ph 1-4 VIRGINIA BEACH 2002 422,000 P
6 Patrick Henry Mall NEWPORT NEWS 1987 661,522 R 18 Walmart Way Crossing CHESAPEAKE 2002 432,250 P
7 Lynnhaven Mall VIRGINIA BEACH 1981 1,291,445 R 19 Victory Crossing Ph 1 + 2 PORTSMOUTH 2002 326,300 P
8 Military Circle Norfolk 1970 688,842 R 20 Victory Village WILLIAMSBURG 2004 335,000 P
9 Chesapeake Square Mall CHESAPEAKE 1989 803,633 R 21 Jefferson Commons NEWPORT NEWS 2005 307,662 P
10 J.A.N.A.F. Shopping Yard NORFOLK 1957 891,281 P 22 Windsor Meade Marketplace WILLIAMSBURG 2005 225,000 P
11 Newmarket Shopping Center Hampton 1956 354,804 P 23 Edinburgh Commons CHESAPEAKE 2008 597,000 P
12 Macarthur Square NORFOLK 1999 950,000 R 24 Landstown Commons VIRGINIA BEACH 2008 505,699 P
25 The Marquis at Williamsburg WILLIAMSBURG 2008 393,911 P
Type R: Regional/Super Regional malls P: Power Centers
Numbers correspond to listings on map
Section 63 - Economic and Demographic Data
2014 2015 2016 2017 2018 2019
1.0
2.0
3.0
4.0
5.0
6.0
Norfolk/Hampton Road South Atlantic United States
Household Annual Income Growth Trend Comparisons
2014 2015 2016 2017 2018 2019
0.5
1.0
1.5
2.0
2.5
3.0
Norfolk/Hampton Road South Atlantic United States
Total Annual Employment Growth Comparisons
Source: Economy.com Source: Economy.com
Power Center ReportRetail - 1st Quarter 2020Prepared By Reis, Inc.
Metro: Norfolk/Hampton RoadsCustomerID:1075682
Copyright 2020 Reis, Inc. Page 671075682
Section 64 - Economic and Demographic Trends
Year Qtr TotalEmployment
OfficeEmployment
IndustrialEmployment Households Population Household Avg.
Income
2010 Y 737,530 237,851 86,059 633,220 1,682,950 $109,249
2011 Y 741,630 240,724 86,429 636,960 1,691,400 $112,826
2012 Y 752,330 243,691 89,007 641,320 1,700,820 $118,842
2013 Y 757,130 244,236 88,874 648,430 1,709,030 $114,241
2014 Y 758,530 244,762 88,572 654,680 1,717,410 $119,566
2015 Y 772,400 247,050 87,262 659,080 1,721,050 $123,556
2016 Y 776,430 247,761 85,749 662,660 1,723,540 $124,338
2017 Y 786,670 252,118 87,343 665,150 1,724,930 $127,767
2018 2 792,530 255,266 89,867 666,290 1,725,470 $131,803
2018 3 789,830 254,008 90,504 666,880 1,725,980 $132,983
2018 4 787,900 254,518 90,462 667,830 1,726,640 $133,872
2018 Y 787,900 254,518 90,462 667,830 1,726,640 $133,872
2019 1 792,530 254,893 91,568 669,310 1,727,510 $135,568
2019 2 797,100 257,328 92,167 671,000 1,728,640 $137,122
2019 3 793,600 255,210 91,620 672,800 1,730,040 $137,619
2019 4 794,600 253,479 91,931 674,510 1,731,790 $138,168
2019 Y 794,600 253,479 91,931 674,510 1,731,790 $138,168
2020 1 795,060 253,690 91,738 675,950 1,733,760 $138,542
2020 Y 774,640 247,251 88,943 677,860 1,740,460 $137,524
2021 Y 781,880 249,451 89,000 681,710 1,749,600 $140,976
2022 Y 797,510 254,726 89,820 687,630 1,758,370 $147,490
2023 Y 805,130 257,712 89,770 693,900 1,766,800 $152,529
2024 Y 807,490 259,067 89,179 699,890 1,775,590 $157,215
Source: Moody's Economy.com
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Copyright 2020 Reis, Inc.
About Reis
Reis provides commercial real estate market information and analytical tools to real estate professionals through itsReis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietarydatabase containing detailed information on commercial properties in metropolitan markets and neighborhoodsthroughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution,flex/research & development, self storage, seniors housing properties and affordable housing, and is used by realestate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition,Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associatedwith individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides itsinformation services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.