Office Market Review Historical Vacancy Rate Trends Vivian Turok - - PDF document

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Office Market Review

Vivian Turok

Senior Vice President Office Leasing Division Divaris Real Estate 30 years experience in office sales, leasing, tenant and landlord representation Bachelor of Social Science University of Cape Town South Africa

Hampton Roads Historical Vacancy Rate Trends

7.8% 9.7% 11.8% 14.3% 13.1% 10.1% 8% 6.9% 2 4 6 8 10 12 14 16 1999 2000 2001 2002 2003 2004 2005 2006

Office Market Rental Rates

• Class A = $20.00 per square foot
• Class B = $15.42 per square foot
• Class C = $12.39 per square foot

Pembroke Six, Virginia Beach I nterstate Corporate Center, Norfolk Southern Boulevard, Virginia Beach Social Security Building, Norfolk

Commonwealth of Virginia Leases Signed in 2006

Convergence III, Virginia Beach Rosemont Interstate Center, Virginia Beach

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World Trade Center, Norfolk Amerigroup, Virginia Beach

Chesapeake Leases

Innovation Research Park Lockheed Martin Modeling Center

2006 Developments

Gallery I and II, Virginia Beach Liberty III, Chesapeake Central Center Office Building, Norfolk Amerigroup II, Virginia Beach

2006 Developments

BECO Building, Chesapeake HRRA Building, Chesapeake Bridgeway Technology Center, Suffolk

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2006 Developments

Merchants Walk South, Newport News One City Center, Newport News

2007 Developments

Two Columbus Center, Virginia Beach

2007 Developments

Dominion Enterprises, Norfolk Oakbrooke Professional Center, Chesapeake Convergence III, Virginia Beach Harbourview Medical Building, Suffolk

2008 Projects

Commander Corporate Center, Norfolk Pavilion Center II, Virginia Beach The Fairways at Lake Wright, Norfolk

Wachovia Center, Norfolk Downtown Norfolk

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Bon Voyage Incentives

Hampton Roads Market Conditions

Rental rates are on the rise Fewer landlord incentives Lowest vacancy rates in 10 years

Office Market Forecast

Building construction will increase Town Center developments Healthcare and port-related users will play a role in growing our market base BRAC’s uncertainty effect on our military users

LEEDTM Market Transformation

October 2006

• 596 Certified Projects
• 1,581+ Registered Projects

O v e r 3 , L E E D A c c r e d i t e d P r

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e s s i

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a l s ! Projects in all 50 States and 24 Countries HSMM

Buildings Consume 12% of potable water 39% of primary energy 40% of raw materials 48% of US carbon emissions 70% of US electricity

Green Buildings Save:

30 – 50% of energy 35% of carbon emissions 40% of water 70% of solid waste

R e c y c l i n g b i n s Bicycle racks

Liberty III, 1317 Executive Blvd, Chesapeake

Hybrid parking G r e e n c l e a n i n g p r

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