“We are seeing an uptick in demand for second generation restaurant space, mostly from regional and/or mom and pop operators. On the other side of the coin, we’ve seen more negotiating leverage from tenants specifically addressing supply chain issues, as well as fairly consistent requests for free rent or some form of modified rent when beginning any substantial lease term.”
Ben Clarke| Associate
- Activity continued at Dollar Tree’s new Summit Pointe development in the Greenbrier submarket, as new restaurant, Neat Bird, occupied 4,000 square feet of space in July.
- Multiple large occupations occurred during the quarter, highlighting tenant movement throughout the market. Old Time Pottery occupied over 130,000 square feet of space at the Little Creek Marketplace within the Little Creek submarket and Hobby Lobby occupied over 40,000 square feet of space at Greenbrier MarketCenter within the Greenbrier/Battlefield submarket. These deals contributed to over 400,000 square feet of positive net absorption in the market during Q3 2022.
- The Railyard at Lambert’s Point broke ground within the Downtown Norfolk submarket last quarter, with an expected delivery of Q2 2023. The 100,000 square-foot mixed-use development has already seen a large amount of lease-up activity prior to delivery, including signing tenants Sushi King, Virginia ABC, DB Nail Studio, and Cyclebar among others. This is the first large retail development the market has seen since the Virginia Beach Field House delivered to the market in 2020.