2011 Hampton Roads Real Estate Market Review - College of ...

We saw a greater decrease in the vacancy rate on the Peninsula. The vacancy rate dropped 1.45% to 11.73%, and
interest remains very strong for select submarkets. Despite adverse lending conditions, we will welcome two new projects
to the Peninsula in 2011.
In 2009, we were left with a vacancy rate of 9.88% for the overall retail market in Hampton Roads, the highest
we have experienced in the past decade. Landlords did not want a repeat of 2009 and became more aggressive at deal
making. Savvy tenants took advantage of favorable market conditions thereby reducing the market vacancy rate to
8.94%. While we will face many of the same challenges as 2010 retail sales are up, supply is slowly reducing. Tenants
continue to express interest in the Hampton Roads market.
We continue to move forward acknowledging that 2011 may bring some challenges with the unknowns of the capital
markets and lender viability; however, the Hampton Roads retail market is more stable. As we are trending in all
the right directions, the worst is now behind us.
RETAIL SUBMARKETS
SOUTHSIDE SUBMARKETS
There were 25 retail submarkets on the Southside this year. The largest Southside markets were Greenbrier and
Military Highway, with combined square footage of 7,026,016 square feet. The overall average size of the submarkets
was 1,337,423 square feet. The Greenbrier/Battlefield submarket, at 4,243,816 square feet, has one of the lowest
vacancy rates at 4.88% and one of the highest small shop asking rates, $20.03 per square foot triple net.
The range of vacancy rates in the Southside submarkets can be seen in the table below.
Southside By Submarket
Average
Number of
Small Shop
Properties GLA in SF Vacant SF % Vacant Rate PSF
Bay Front 5 283,551 3,854 1.36% $17.53
Birdneck/Oceanfront 4 191,655 11,511 6.01% $10.95
Campostella 6 332,904 80,800 24.27% $12.56
Chesapeake Square 9 2,218,786 82,805 3.73% $17.00
Churchland-Portsmouth/Harborview 13 986,880 47,729 4.84% $15.08
Dam Neck 7 1,509,037 28,900 1.92% $18.57
Downtown 4 1,329,283 31,475 2.37% $14.83
Ghent 9 391,588 41,269 10.54% $17.81
Great Bridge 17 1,363,132 107,928 7.92% $16.30
Greenbrier/Battlefield Boulevard 24 4,243,816 207,065 4.88% $20.03
Hilltop/Great Neck 12 1,485,168 88,854 5.98% $21.36
Holland/Green Run 10 863,663 50,242 5.82% $13.67
Indian River/College Park ( Including Chesapeake) 5 666,183 74,265 11.15% $14.20
Kempsville 12 1,233,576 138,882 11.26% $15.75
Little Creek Road /Wards Corner/Ocean View 18 1,867,591 310,786 16.64% $14.38
Little Neck 11 1,435,803 147,297 10.26% $17.38
Lynnhaven Road (Virginia Beach Boulevard To Holland Road) 8 1,822,451 173,247 9.51% $18.80
Middle Portsmouth 15 1,768,265 176,988 10.01% $12.75
Military Highway/Janaf 16 3,366,181 140,750 4.18% $13.24
Newtown 12 638,344 91,408 14.32% $12.82
ODU 1 39,691 8,675 21.86% $19.00
Pembroke 23 2,716,994 335,491 12.35% $15.90
Princess Anne Road (From Kempsville Road To Holland Road) 15 1,854,589 46,745 2.52% $17.88
Smithfield 5 279,764 5,436 1.94% $17.00
Suffolk 13 1,130,660 91,352 8.08% $16.80
Total 274 34,019,555 2,523,754 7.42% $16.16
2011 Hampton Roads Real Estate Market Review
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