1 TOTAL ABSORPTION FROM 2000- -2005 2005 TOTAL ABSORPTION FROM - - PDF document

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Industrial Review Industrial Review – – Clay Clay Culbreth Culbreth

Old Dominion University Old Dominion University Hampton Roads Real Estate Hampton Roads Real Estate Market Review and Forecast Market Review and Forecast 2006 2006

Presented by: E.V. Williams Center for Real Estate and Economic Development

Industrial Market Review Industrial Market Review

Richard C. Culbreth, Jr., CCI M, SI OR Richard C. Culbreth, Jr., CCI M, SI OR Senior Director, I ndustrial Properties Senior Director, I ndustrial Properties Advantis Real Estate Services Company Advantis Real Estate Services Company Since 1989 has concentrated exclusively on Since 1989 has concentrated exclusively on marketing, selling and leasing industrial marketing, selling and leasing industrial properties. properties. 1991 Co 1991 Co-

• founded Virginia Commercial Real

founded Virginia Commercial Real Estate Services in Virginia Beach. Estate Services in Virginia Beach. 1995 formed Old Dominion Commercial Real 1995 formed Old Dominion Commercial Real Estate Services. Estate Services. Since 1992 to present has been a Tidewater Since 1992 to present has been a Tidewater Associates of Realtors Associates of Realtors’ ’ Million Dollar Million Dollar Producer. Producer.

Bobby Beasley Ken Benassi Charles Dickinson Worth Remick Pat Mumey Chip Worley Ron Biesecker Abe Ellis Bill Throne Billy King Charles Dickinson Stephanie Sanker Trip Ferguson

Gross Square Feet 1997 Gross Square Feet 1997 -

• 2005

2005

20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 1997 1998 1999 2000 2001 2002 2003 2004 2005

Hampton Roads Industrial Market Hampton Roads Industrial Market Vacancy Rate Vacancy Rate

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 13.5 10.9 10.2 12.3 10.8 9.2 8.7 8.6 7.3 7.6 6.4 7.4 7.5 6.25 5.24

5.24 5.24 6.25 6.25 Total Total

5.05% 5.05% 6.88% 6.88% Williamsburg Extended Area Williamsburg Extended Area 4.72% 4.72% 7.39% 7.39% Oakland/ Upper Peninsula Oakland/ Upper Peninsula 4.08% 4.08% 5.13% 5.13% Oyster Point/ Middle Point Oyster Point/ Middle Point 8.80% 8.80% 17.43% 17.43% Copeland/ Lower Peninsula Copeland/ Lower Peninsula 0.00% 0.00% 0.68% 0.68% I sle of Wight I sle of Wight 4.72% 4.72% 6.13% 6.13% Suffolk Suffolk 23.04% 23.04% 9.13% 9.13% Portsmouth Portsmouth 7.23% 7.23% 3.39% 3.39% Airport I ndustrial Park Airport I ndustrial Park 1.85% 1.85% 2.45% 2.45% Greenwich/ Cleveland Street Greenwich/ Cleveland Street Area Area 3.85% 3.85% 3.31% 3.31% Lynnhaven Lynnhaven Area Area 6.33% 6.33% 6.43% 6.43% West Side/ Midtown Norfolk West Side/ Midtown Norfolk Area Area 2.87% 2.87% 4.07% 4.07% Norfolk I ndustrial Park Norfolk I ndustrial Park 2.82% 2.82% 2.91% 2.91% Norfolk Commerce Park Norfolk Commerce Park 9.25% 9.25% 8.14% 8.14% Cavalier I ndustrial Park Cavalier I ndustrial Park 0.00% 0.00% 5.60% 5.60% Bainbridge/ S. Elizabeth River Bainbridge/ S. Elizabeth River 1.13% 1.13% 2.12% 2.12% Greenbrier Greenbrier

2005 Vacancy Rate 2005 Vacancy Rate 2004 Vacancy Rate 2004 Vacancy Rate Submarket Submarket

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TOTAL ABSORPTION FROM 2000 TOTAL ABSORPTION FROM 2000-

• 2005

2005

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2000 2001 2002 2003 2004 2005

1,000,000 2,800,000 3,000,000 2,100,000 2,270,000 1,826,000

Bay Warehouse Bay Warehouse

($13.2 million/ $44.00 ($13.2 million/ $44.00 per square foot) per square foot)

Gateway Building Gateway Building

($14.1 Million/ $33.44 per square foot) ($14.1 Million/ $33.44 per square foot)

1920 1920 Campostella Campostella Road Road

Ashley Capital Acquisition Ashley Capital Acquisition -

• 2005

2005 GE Facility GE Facility

Some Leases Worth Noting Some Leases Worth Noting

Bridgeway Bridgeway Commerce Center Commerce Center Ward Court Ward Court Gateway Distribution Facility Gateway Distribution Facility

If You Build It, They Will Come!

• C. Jones Hooks,
• C. Jones Hooks, CEcD

CEcD President & CEO President & CEO Hampton Roads Economic Hampton Roads Economic Development Authority Development Authority

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Russell Young Russell Young Director, Economic Development Director, Economic Development Virginia Port Authority Virginia Port Authority

Greedy Broker Greedy Broker

The increase in port activity The increase in port activity will generate a need for will generate a need for “… “… between 20 and 60 million between 20 and 60 million square feet of additional square feet of additional distribution center space in distribution center space in the region the region…” …”

Moffatt Moffatt & Nichol Report dated June 2005 & Nichol Report dated June 2005

Modern Terminals Modern Terminals

Portsmouth Marine Terminal Portsmouth Marine Terminal NI T North NI T North Craney Craney I sland Build I sland Build-

• Out 2032

Out 2032 Newport News Marine Terminal Newport News Marine Terminal

Maersk Maersk Terminal Site Terminal Site Craney Craney Island Island

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Industrial Developers Circling the Market Devon Devon’ ’s s Enterchange Enterchange at Suffolk at Suffolk

Devon Devon’ ’s s Enterchange Enterchange at Hampton at Hampton

Liberty Property Trust Liberty Property Trust’ ’s s Bridgeway Bridgeway Commerce Center Commerce Center

American Port Services American Port Services’ ’ Northgate Commerce Park Northgate Commerce Park

Regional Companies Regional Companies’ ’ Virginia Regional Commerce Park Virginia Regional Commerce Park

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Ashley Capital Ashley Capital’ ’s s 2601 Indian River Road 2601 Indian River Road