10/21/21 Hampton Roads Mastermind Group Meeting

Hampton Roads October 2021 – Key Take-Aways

• Don Crigger with Colliers says “Statistically, the Hampton Roads Office Market has performed surprising well through the pandemic with vacancy ad rental rates remaining stable.  It remains to be seen whether this stability will be sustained once office occupies return in larger number during the coming months and an more clarity about the way forward.  No longer a short-term experiment, working from home or some hybrid model for those with non-collaborative positions appears to be a viable menu option and enables growing companies to “expand” without adding square footage.  In any case, because our office market fundamentals were extremely healthy going into the pandemic, we expect it to be well positioned to withstand any fluctuations over the coming 12-24 months.”
• Dan Shelton with Whiting-Turner said they remain very busy, and they are having to qualify all bids based on supply of goods and materials.  Healthcare and industrial are still very strong.  The pricing for roofing materials is not being provided until they are actually shipped.
• Josh Gerloff with RRMM Architects says they are actively looking to hire and are now offering employees a $500 referral fee for new hires.
• Greg Schmitt with Kimley-Horn said the backlog of work is great!  Getting all of their professional staff into the office is a challenge.  They lost some good middle level staff that were unwilling to give up virtual work.  Seeing quick serve restaurants improving their drive thru capabilities.
• Renee Haltom with the Federal Reserve Bank provided and in-depth look at the economic conditions:
  • Demand is back:  Strong consumption, housing manufacturing.
  • Down 5M jobs compared to pre-Covid, but the labor market is tighter than this suggests – lots of disparity by sector, race, gender, income.
  • GDP recovery has been stronger than expected.
  • Spending on services hit hard, and still below pre-Covid.
  • Households are sitting on a lot of savings.
  • The strong goods consumption is reflected in manufacturing, above pre-Covid production with 5M fewer jobs.
  • Recovery has not been evenly felt
    • Business travel/gathering -still lagging.
    • Covid exacerbated inequalities.