2008 RETAIL MARKET REVIEW 2008 RETAIL MARKET REVIEW Presented By: Bill Overman Hampton Roads Retail Hampton Roads Retail Hampton Roads Retail Hampton Roads Retail Southside Southside 396 Properties Totaling 396 Properties Totaling 263 Properties 263 Properties 50,219,239 SF 50,219,239 SF Totaling 33,086,160 SF Totaling 33,086,160 SF Per Person Average Per Person Average Peninsula Peninsula Hampton Roads 29.5 SF Hampton Roads 29.5 SF 133 Properties 133 Properties National 18.2 SF National 18.2 SF Totaling 17,133,079 SF Totaling 17,133,079 SF New Construction New Construction New Construction New Construction Since 2003 Since 2003 Southside Southside 1,038,291 SF 1,038,291 SF 3,000,000 2,594,843 SF (3.1% of Total SF) (3.1% of Total SF) 2,500,000 2,047,291 SF 2,000,000 Peninsula Peninsula 1,211,699 SF 1,500,000 749,458 SF 1,009,000 SF 1,009,000 SF 1,000,000 456,610 SF 500,000 (5.9% of Total SF) (5.9% of Total SF) 0 2003 2004 2005 2006 2007 1
Landstown Commons Commons A Few Projects A Few Projects Landstown Delivered in 2007 Delivered in 2007 • Landstown Landstown Commons Commons • • The Marquis The Marquis • • Towne Place in Greenbrier Towne Place in Greenbrier • Towne Place in Towne Place in The Marquis The Marquis Greenbrier Greenbrier Virginia Beach Town Center Virginia Beach Town Center Mixed Use Mixed Use 2
New Town New Town City Center at Oyster Point City Center at Oyster Point Settler’ ’s Market s Market Peninsula Town Center Settler Peninsula Town Center Little Creek & Tidewater Little Creek & Tidewater New New Construction Construction in Motion in Motion 3
Harbour View East View East Harbour Marketplace at Harbour Harbour View View Marketplace at Edinburgh & Cahoon Cahoon Commons Commons Edinburgh & Bennett’ ’s Creek Crossing s Creek Crossing Bennett Grocers in the News Grocers in the News Big Box Big Box Target at Red Mill Walk Lowe’s buys Giant Square 4
Vacancy Rate Vacancy Rate Vacancy Rates Since 2003 Vacancy Rates Since 2003 13.00% 11.19% Southside 6.7% Southside 6.7% 11.00% 9.41% 9.00% 7.55% 7.63% 6.81% Peninsula 9.4% Peninsula 9.4% 7.00% 5.00% 2003 2004 2005 2006 2007 2007 Rental Rates 2007 Rental Rates Emerging Markets Emerging Markets Isle of Wight Isle of Wight Overall Average Overall Average $16.05 NNN $16.05 NNN Northern Suffolk Northern Suffolk Southside: $16.68 NNN Southside: $16.68 NNN Williamsburg Williamsburg Peninsula: $15.41 NNN Peninsula: $15.41 NNN Eastern North Carolina Eastern North Carolina FORECAST FORECAST 5
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. What we percent to 12 percent in 2008. 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 6
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