DOMINION BOULEVARD CORRIDOR STUDY | Chesapeake, Virginia
28 | Market Study
Market Study | 29
Table 2: Key Strengths, Challenges, and Opportunities in Dominion Study Area
Table 3: Regional Employment Center Scenario Summary
Regional Employment Center Scenario
The Study Area can become an employment center of
regional significance. It will need to have infrastructure
in place, the backing of the economic development
community, as well as strong amenities, executive
housing, and a wide range of land uses. It will be
critical to have the employment core as close to
the interstates and northern part of the Study Area
as possible. The City of Chesapeake may need to
catalyze the opportunity.
The majority of the available commercial, industrial
and office land uses should be concentrated in a
mixed use “employment core” that includes retail, high
density housing, parks, open spaces and community
services such as schools, police, fire, etc.
For-sale and for-rent projections for the Study Area
were based upon household growth in the MSA;
owner/renter propensity (approximately 67% owners);
Chesapeake’s capture of the MSA based upon capture
of MSA new home sales from 2009-2013; apartment
absorption from 2000-2013; the potential capture
based upon the desirability of the Study Area for
residential; as well as the availability of land. Retail
projections were based upon household growth in
the Study Area multiplied by 85 square feet of retail
per household (based upon the comparison of total
square feet of retail in the MSA compared to total
households). Office projections were based upon
employment growth in the MSA, total square feet of
office per new employee (250 sf/employee based
upon local costar data and national trends), and the
percent captured in the Study Area based upon it
becoming an employment center, performing similarity
to the Greenbiar submarket as it matures. Industrial
projections were based upon employment growth
in the MSA; total square feet of industrial per new
employee (500 sf/employee based upon local costar
data and national trends); and the percent captured in
the Study Area, capturing twice as much as the Deep
Creek Submarket currently captures.
The Regional Employment Center will offer
the characteristics that companies look for
- characteristics that include an attractive
streetscapes, a variety of restaurants, and
proximity to a young, talented workforce.
Companies have discovered that there is a
business advantage to locating close to their
employment base, and leading employers have
been following young, highly-skilled workers to
urban, amenity-filled neighborhoods. Nationally,
traditional business parks are facing high vacancy
rates with markets beyond the urban fringe in the
lowest demand. Companies relocating to more
vibrant, walkable neighborhoods is a strong trend.
By providing these types of neighborhoods and
environments, the Study Area should help attract
businesses to Chesapeake.
Land Use
Residential
Retail
Office
Industrial
Strengths
As Greenbrier builds out, the
opportunity to be the “next”
Greenbrier—although it can be
with today’s design standards and
guidelines
Once bridge is completed and road
widened, will create a new area for
development
In the mid- to long-term, the health
care industry should help bolster the
office market
For the near- and mid-term, the
regional and community shopping
needs of residents will be met at
Greenbrier area, limiting need for
certain types of retail
Industrial-related employment is
projected to decrease in the region
The Study Area is not as well-
positioned as other areas for some
types of industrial development—it
is not on the water, does not lead to
other major cities (e.g. along I-95) and
does not have rail access
There are not a lot of large parcels
of industrial land available in the
market—have enough land to be able
to accommodate larger users
Industrial development in this area
could serve the general industrial
needs of the region
All of the industrial buildings would be
new and meet the latest standards in
industrial building height clearance,
etc.
Tidewater Community College has
a new facility in the area—may be
possible to work with them for training
opportunities for future businesses
Widening of Dominion Boulevard and
opening of new bridge will make the
Study Area more desirable for future
office
The City of Chesapeake’s interest in
creating an employment center in the
Study Area will help it succeed
Development is already starting to
move in this direction
The office market is still struggling—
will not be a “leader” land use in the
Study Area without significant catalyst
Somewhat far off of interstate
access—a key to creating employment
cores—will need to work on the image
for access
Create new retail centers in “town
center” configurations that could help
create a sense of community and a
focal point for development
The retail market is relatively strong
and stable—could be a good use that
will be in demand in the short-term as
housing is created
Close to Great Dismal Swamp and
associated recreational opportunities
Chesapeake is a well-regarded place
to buy a home—the schools are good,
leading to strong housing demand
New Grassfield High School would be
attractive for new residents
Culpepper Landing, an actively selling
master-planned community with
the strongest sales in the region, is
already selling close to the Study Area
High-end housing in the region is
water-oriented. Will need to figure
out how to amenitize the residential
projects in the Study Area to compete
for executive housing
Without associated employment
development, would be difficult to build
multifamily residential
Create multiple master-planned
communities/neighborhoods,
appealing to a wide range of buyers
and renters
The for-sale residential market is
starting recovery, and this area, if
zoned for residential, would be a
strong location for development
Will be a good location for future
households, and therefore, future retail
to support it
Close to airport
Development is already starting to
move in this direction
Opportunities
Challenges
$400,000
$1.30
$16
$18
$6
$ / Unit / SF
For-Sale Residential
For-Rent Residential
Total Residential
Retail SF
Office SF
Industrial SF
Total SF Commercial
Yield Summary
2,278
448
2,726
240,319
233,693
114,859
588,871
2014-2024
1,871
579
2,450
214,722
482,966
28,273
725,961
4,148
1,027
5,176
455,041
716,659
143,133
1,314,832
2025-2035
Total to
2035
Estimated Employees
Jobs to Households
1,699
2,466
4,164
0.62
1.01
0.80
9,000
3,000
12,000
1,015,637
2,500,000
1,250,000
4,765,637
Build Out
14,757
1.23
