Hampton Roads December 2022 – Key Take-Aways
• Coastal Logistics Center in Suffolk offers 815K sq ft of Class A industrial and will be completed and available in early 2023. Offering for lease or sale. (Tony Beck – CBRE)
• Fluctuations in interest rates make pricing deals difficult. Some investors are waiting for things to plateau. (Tony Beck – CBRE)
• The office market continues to be uncertain along with uncertainty regarding whether people will be returning to work. (Tony Beck – CBRE)
• People want to go back into stores and retail has made a huge resurgence. (Tony Beck – CBRE)
• Multi- family is still doing well but capital markets have had an impact. (Tony Beck – CBRE)
• The restaurant business is a big part of retail, but not the only part doing well. There are a lot of national chains looking for space. (Tony Beck – CBRE)
• People want to entice people to come back to the office by adding amenities, but landlords don’t have the capital. (Tony Beck – CBRE)
• Re-zoning cases are going to be longer and more challenging. They will require more data in meetings and there’s a lot of misinformation. (Tony Beck – CBRE, Greg Schmitt – Kimley-Horn)
• There is competition among municipalities. It’s better in Richmond because they are a larger metro area. (Tony Beck – CBRE)
• Still seeing a lot of medical office buildings and hospital work, but it seems to be slowing a little. (Dan Shelton – Whiting-Turner)
• There are still significant issues with materials, and pricing continues to fluctuate dramatically in short periods of time. (Dan Shelton – Whiting-Turner)
• Pricing is stabilizing a little bit, but suppliers are adding stipulations to contracts and getting more creative with qualifications to cover pricing fluctuations. (Dan Shelton – Whiting-Turner)
• Companies have figured out ways to adapt to pricing, but it’s been more difficult dealing with delays to delivery times, which drives costs up. It’s important to stay in touch with vendors providing materials. (Dan Shelton – Whiting-Turner)
• Some jobs are being done out of sequence to get around supply delays. (Dan Shelton – Whiting-Turner)
• The Last Planner System assists in evaluating progress throughout a project and in coordinating with subcontractors. (Dan Shelton – Whiting-Turner)
• Hiring continues to be an issue and it’s important to continue recruiting efforts to avoid having holes in your staff in the future. (Dan Shelton – Whiting-Turner)
• Hiring out of college helps to grow talent in house. (Greg Schmitt – Kimley-Horn)
• Companies have had to be more creative with recruiting and are expanding into universities they didn’t previously recruit from. (Greg Schmitt – Kimley-Horn)
• Working on a lot of upcoming major projects, including the Military Circle, and Farm Re-zoning in Chesapeake. (Greg Schmitt – Kimley-Horn)
• Some restaurants are adapting to a drive thru only concept. (Greg Schmitt – Kimley-Horn)
• Gas stations continue to be hot, despite the push toward electric vehicles. (Greg Schmitt – Kimley-Horn)
• Length of time for changing electric vehicles may be a good thing for retailers. (Chris Ambrosio – Woods Rogers Vandeventer Black PLC)
• Along with the growth of multi-family has come a growth of storage. (Greg Schmitt – Kimley-Horn)
• Wind energy has brought manufacturing back to Hampton Roads, but there are other issues and it’s not super-efficient, especially in regards to cost to build. (Greg Schmitt – Kimley-Horn)
• There has been a significant divergence between the short and the long end of the curve. There is a big inversion of the yield curve. (Keith Slattum – Dollar Bank)
• Will probably see another hike and cutting rates isn’t expected until 2024. (Keith Slattum – Dollar Bank)
• Seeing a lot of leasing, especially restaurant leasing. (Chris Ambrosio – Woods Rogers Vandeventer Black PLC)
• Not seeing a lot of office leases. (Chris Ambrosio – Woods Rogers Vandeventer Black PLC)
• The Corporate Transparency Act affects small companies and includes additional requirements for reporting personal information about owners. Goes into effect Jan 1, 2024. (Chris Ambrosio – Woods Rogers Vandeventer Black PLC)
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