Wal-Mart continues to be the dominant development driver in the Hampton Roads, Virginia, market. Grocery-anchored development remains stagnant. “The market continues to watch Kroger to see if it is going to expand or dispose of the former Hannaford locations that the grocer currently operates,” says Edward Kimple, senior director of retail properties with Advantis Real Estate Services Company in Norfolk. “While the town center concept is hot with three under construction and one more on the drawing board, lack of retailer expansions appears to be hindering the retail leasing efforts.”

Power Plant, a Cordish Company development in Hampton, has landed Bass Pro Shops Outdoor World. Scheduled to open in summer 2003, Bass Pro will generate enormous traffic flow that should generate additional peripheral development.

Strong development areas include General Booth, Virginia Beach, where there is strong growth coupled with strong income, and Chesapeake Square in Chesapeake, a new center anchored by Wal-Mart Supercenter and Sam’s Club. Chesapeake Square boasts low vacancy and close proximity to Suffolk, the strongest residential growth area in the market.

The most active developers in the area are Armada Hoffler, Ellis Gibson and Cordish Company. New retailers to enter the market include Panera Bread Company, P.F. Chang’s China Bistro, Atlanta Bread Company, Moe’s Southwest Grill, Ross Dress For Less, WaWa and T Mobile. The vacancy rate is currently at 13.7 percent.

“Following a steady Hampton Roads economy, the retail market has remained stable throughout the recession,” Kimple notes. “While new development has been limited, existing centers continue to enjoy low turnover. Kohl’s should finally hit Hampton Roads in 2003. A welcome addition to the market, Kohl’s could take some key locations that will spur additional development and add a needed strength to other properties.”

Edward Kimple is Senior Director, Retail Properties with Advantis Real Estate Services.


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