Hampton Roads Retail Hampton Roads Retail Hampton Roads Retail - - PDF document

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2008 RETAIL MARKET REVIEW 2008 RETAIL MARKET REVIEW

Presented By: Bill Overman

Hampton Roads Retail Hampton Roads Retail

Per Person Average Per Person Average

Hampton Roads 29.5 SF Hampton Roads 29.5 SF National 18.2 SF National 18.2 SF

396 Properties Totaling 396 Properties Totaling 50,219,239 SF 50,219,239 SF

Hampton Roads Retail Hampton Roads Retail

Peninsula Peninsula 133 Properties 133 Properties Totaling 17,133,079 SF Totaling 17,133,079 SF Southside Southside 263 Properties 263 Properties Totaling 33,086,160 SF Totaling 33,086,160 SF

New Construction New Construction Since 2003 Since 2003

749,458 SF 456,610 SF 1,211,699 SF 2,594,843 SF 2,047,291 SF

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2003 2004 2005 2006 2007

New Construction New Construction

Peninsula Peninsula 1,009,000 SF 1,009,000 SF (5.9% of Total SF) (5.9% of Total SF) Southside Southside 1,038,291 SF 1,038,291 SF (3.1% of Total SF) (3.1% of Total SF)

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A Few Projects A Few Projects Delivered in 2007 Delivered in 2007

• Landstown

Landstown Commons Commons

• The Marquis

The Marquis

• Towne Place in Greenbrier

Towne Place in Greenbrier

Landstown Landstown Commons Commons The Marquis The Marquis Towne Place in Towne Place in Greenbrier Greenbrier

Mixed Use Mixed Use

Virginia Beach Town Center Virginia Beach Town Center

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City Center at Oyster Point City Center at Oyster Point New Town New Town Settler Settler’ ’s Market s Market Peninsula Town Center Peninsula Town Center

New New Construction Construction in Motion in Motion

Little Creek & Tidewater Little Creek & Tidewater

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Marketplace at Marketplace at Harbour Harbour View View

Harbour Harbour View East View East Bennett Bennett’ ’s Creek Crossing s Creek Crossing

Edinburgh & Edinburgh & Cahoon Cahoon Commons Commons

Grocers in the News Grocers in the News

Big Box Big Box

Target at Red Mill Walk Lowe’s buys Giant Square

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Vacancy Rates Since 2003 Vacancy Rates Since 2003

11.19% 9.41% 7.55% 6.81% 7.63%

5.00% 7.00% 9.00% 11.00% 13.00% 2003 2004 2005 2006 2007

Vacancy Rate Vacancy Rate

Southside 6.7% Southside 6.7% Peninsula 9.4% Peninsula 9.4% 2007 Rental Rates 2007 Rental Rates

Overall Average Overall Average $16.05 NNN $16.05 NNN Southside: Southside: $16.68 NNN $16.68 NNN Peninsula: Peninsula: $15.41 NNN $15.41 NNN

Emerging Markets Emerging Markets

Isle of Wight Isle of Wight Northern Suffolk Northern Suffolk Williamsburg Williamsburg Eastern North Carolina Eastern North Carolina

FORECAST FORECAST

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Market Cycle Market Cycle

Worth Quoting Worth Quoting

“ “The party is over. With the exception of The party is over. With the exception of quality product, markets with barriers to quality product, markets with barriers to entry, and those with a durable rent roll, entry, and those with a durable rent roll, commercial real estate will decrease 10 commercial real estate will decrease 10 percent to 12 percent in 2008. percent to 12 percent in 2008. What we What we’ ’re re experiencing now is not a market crash, experiencing now is not a market crash, but merely a return to normalcy. but merely a return to normalcy.” ”

Jerry Anderson, CCIM President Jerry Anderson, CCIM President Sperry Van Ness Sperry Van Ness