DOMINION BOULEVARD CORRIDOR STUDY | Chesapeake, Virginia
24 | Market Study
Retail
The market appears to have stabilized.
Vacancy rates continue to drop and as of
2014- Q1 were at 6.5%, and rents have
remained stable at approximately $13/
net net net (nnn) average rate. There was
limited construction during the downturn,
which, in turn, has allowed the market to
recover relatively quickly. Retail growth is
tied to household growth, so as the region
continues to gain households, retail will grow
as well.
Currently, the retail market, as defined by
a 10-mile radius around the Study Area,
is mostly in balance relative to demand,
and includes many active retail areas that
provide high amenity benefit for nearby
residents and employees. The area,
which includes a Walmart store, captures
significant spending from outside residents
for general merchandise, electronics,
and apparel products. Although there are
multiple grocery stores in the north and east
half of the retail area, there exists an under
supply of food and beverage, health and
personal care retail. It is estimated that $22
million in annual sales of food and beverage
are spent outside of the area due to a lack
of large-scale grocery stores in the southern
side of Dominion Boulevard.
Office
The office market is still in recovery, but
2014 is expected to be better than 2013,
suggesting the office market will soon be
in recovery as well. Vacancy rates as of
2014-Q1 were 11.5%, and average rents
at $16.44/square foot (SF), below the
peak of $18.41/SF. Office growth is tied
to employment growth, and 2013 was
challenged by sequestration which impacted
defense and government contracting
companies in the region.
Exhibit II-7
PERCENT NEW HOME SALES BY YEAR
HAMPTON ROADS AREA
2000-2013
Year
% New
2000
30 0%
2001
35 0%
2002
31 0%
2003
29 0%
2004
34 0%
2005
32 0%
2006
30 0%
2007
26 0%
2008
22 8%
2009
17 8%
2010
16 9%
2011
15 6%
2012
16 7%
2013
15 3%
% NEW HOME SALE
15 0%
20 0%
25 0%
30 0%
35 0%
40 0%
15,000
20,000
25,000
30,000
35,000
SOURCE: Residential DataBank (2000-2011), Old Dominion University (2012-2013)
0 0%
5 0%
10 0%
0
5,000
10,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Resales
New Sales
% New
Ex
E4-1
Printed: 3/
Figure 10: New and Resale Homes by Year,
Hampton Roads Areal 2 0-2013
Source: Residential DataBank (2000-2011),
Old Dominion University (2012-2013)
