RETAIL REAL ESTATE MARKET REVIEW. Kyllie Bullion E.V. Williams Center for Real Estate and Economic Development Old Dominion University

Transcription

1 RETAIL 2014 HAMPTON ROADS REAL ESTATE MARKET REVIEW Author David Machupa Cushman & Wakefield THALHIMER Survey Collection Kyllie Bullion E.V. Williams Center for Real Estate and Economic Development Old Dominion University Data Analysis/ Layout David Chapman, Ph.D. Old Dominion University Financial Support The E. V. Williams Center for Real Estate and Economic Development (CREED) functions and reports are funded by donations from the CREED membership, organizations, and individuals. Disclosure The data used for this report are deemed reliable; however, neither Old Dominion University, the E. V. Williams Center for Real Estate and Economic Development, nor sponsoring companies and/or individuals make any representation or warranty as to its accuracy RETAIL 13

2 2014 RETAIL General Overview his report analyzes the 2013 retail real estate conditions within the Virginia Beach-Norfolk-Newport News, Virginia Metropolitan Statistical Area (MSA) which is commonly referred to as Hampton Roads. The report examines supply, vacancy, construction, absorption, and rent data to provide a comparison of data for the specific submarkets and product types located within the Southside and Peninsula regions of the Hampton Roads MSA. Southside properties surveyed for the purpose of this report included those located in the cities of Chesapeake, Norfolk, Portsmouth, Smithfield, Suffolk and Virginia Beach. Peninsula properties surveyed are located in the cities of Gloucester, Hampton, Newport News, Poquoson, Williamsburg, and York County. This survey is recognized as the most comprehensive analysis of retail real estate trends in the Hampton Roads MSA. The report includes information on all retail property types including regional malls, freestanding buildings and strip centers of various classifications. The scope of the report also includes a summary of new retail construction activity, an analysis of absorption, and a review of selected retail investment sales that have occurred in the region in METHODOLOGY This survey gathered information about strip shopping centers and regional malls located in the Hampton Roads MSA that were generally 30,000 square feet in size or larger. Additionally, information on retail-oriented freestanding buildings at least 23,000 square feet and freestanding buildings that contained furniture stores, discounters, grocery stores or category killer retailers that met the established size criteria were included in the survey. Automotive uses and buildings containing downtown storefronts were not included. Although available retail space in many submarkets (e.g. Ghent) is best described as a collection of small specialty shops, storefronts or freestanding buildings, practical limitations dictated that the focus of the survey be on larger product types. The survey data was collected between October 2013 and January Questionnaires were mailed to owners, leasing agents and property managers responsible for retail properties meeting the selection criteria. Direct contact was utilized as a follow-up to the mailing to encourage participation. Information on square footage for freestanding buildings was obtained from building owners, tax records, store managers and retail real estate representatives. Sales information was obtained from property owners, real estate agents, appraisers and real estate assessors Hampton Roads Real Estate Market Review

3 DEFINITIONS OF TERMS Asking Rates: The market rate per square foot of a retail property (excluding freestanding buildings and malls), exclusive of additional rents that may be paid under a triple net lease. Interpretation of average retail rates in different product types and submarkets should be viewed cautiously given the tremendous variability in rates for like products and for properties located within the same submarket. Factors such as visibility, co-tenancy, and accessibility, are some of the many sources of variation in market rates which should be considered. Big Boxes: Contiguous retail space that is at least 23,000 square feet and located in any one of the identifi ed product types. Retailers occupying big boxes include, but are not limited to, the following: category killers, specialty stores, discounters, furniture stores, grocery stores and theaters. Bowling alleys, automotive uses, roller rinks and ice-skating rinks were not included. CAM: Common Area Maintenance. Product Types: Properties were classifi ed according to one of the following nine retail product types. The International Council of Shopping Centers defi ned the fi rst six categories. Three additional categories were included to accurately categorize the remaining properties. Neighborhood Center Community Center Fashion/Specialty Center Power Center Theme Festival Center Outlet Center Freestanding Mall Other Regional Mall Node: Submarket anchored by regional mall. 30,000 to 150,000 square feet; supermarket anchored 100,000 to 350,000 square feet; discount department store, supermarket or drug store anchored 80,000 to 250,000 square feet; fashion anchored 250,000 to 600,000 square feet; category killer, home improvement and discount department store anchored 80,000 to 250,000 square feet; restaurants, entertainment anchored 50,000 to 400,000 square feet; manufacturer s outlet store anchored Individual building not considered a shopping center Shopping center with area designed for pedestrian use only Any center that does not fi t into a typical category Small Shop: In-line retail space usually less than 10,000 square feet located in a multi-tenanted shopping center. Submarkets: Hampton Roads is divided into 35 retail submarkets (25 Southside submarkets and 10 Peninsula submarkets) which refl ected general concentrations, pockets or corridors of retail product type. Geographical boundaries of the retail submarkets were infl uenced by density of existing retail product, physical or geographical obstacles, existing transportation networks, municipal boundaries, population concentrations and retailers perceptions of the MSA. Final determination of specifi c boundaries of each submarket was made by a subcommittee of retail real estate professionals who are actively involved in the MSA. Also highlighted were specifi c submarkets that are anchored by regional malls. A map which identifi es the general location of each submarket is included in the centerfold of this report RETAIL Triple Net Lease: Type of lease under which a tenant pays its pro-rata share of real estate taxes, insurance and common area maintenance. 15

4 2014 RETAIL YEAR IN REVIEW 2013 The Hampton Roads market appears to have stabilized saw the re-emergence of grocery stores to the market as Walmart and Kroger continued to expand their presence. On a national level, the retail market remained stable and, as such, remained stable here in Hampton Roads did not bring a mass exodus of retailers; however, a few large box brands did limp into 2014 and we expect a thinning of the herd as these retailers attempt to remain viable. The fi nancing market is stable with lenders actively seeking opportunities. A disconnect remains on product valuation between buyers, sellers and lenders of retail centers and, as such, we did not see a great deal of investment sales in Hampton Roads this past year brought increased activity from grocery stores. Kroger, Walmart Neighborhood Market, and Harris Teeter were very active. Harris Teeter was purchased by Kroger and we will pause to see how this will curtail expansion by both retailers. Walmart opened on Jefferson Avenue and is under construction in the Pembroke area of Virginia Beach with a Super Center. Five of the smaller Neighborhood Market concepts are under construction in Hampton Roads. Harris Teeter will open in the Red Mill area of Virginia Beach and in the Wards Corner area of Norfolk. Kroger opened its 124,000 square foot Marketplace concept on Holland Road in Virginia Beach and is under construction with two more in Portsmouth and Northern Suffolk respectively. Additionally, Whole Foods has announced they will anchor Tech Center at Oyster Point in Newport News and The Fresh Market will open in the Ghent section of Norfolk. Dave and Buster s opened at Lynnhaven Mall and West Marine opened in Loehman s Plaza in Virginia Beach. Starbucks opened a drive thru only location in Virginia Beach; this was the fi rst in Virginia and only the seventh in the country. CVS and 7-11 both continued aggressive expansion within the market. Simon Properties has Lake Wright under contract and is working to bring an outlet mall to the Norfolk site. We saw two small redevelopment projects along Lynnhaven Parkway near the mall with Noodles, Five Guys and Mattress Firm anchoring those developments. Lynnhaven Convenience, a mostly vacant property along Virginia Beach Boulevard anchored by Farm Fresh, is being redeveloped. Farm Fresh closed and has been replaced by Walmart Neighborhood Market, One Life Fitness, and Hobby Lobby. Bahama Breeze and Old Navy opened at the entrance of Pembroke Mall. Settler s Market in Williamsburg came full circle. After starting off slowly, going through foreclosure, and sitting partially constructed, the new ownership was able to re-energize the project and Home Goods, Stein Mart, Michaels, Ulta, Shoe Carnival and 5 Below opened in March occupying roughly 200,000 sf of a 250,000 sf project. There is concern for certain retailers as they continue to struggle on a national level. K-Mart and Sears are closing stores on both a local and national level. K-mart closed the Chesapeake Square and Tidewater Drive locations with many more being offered for lease with or without K-Mart. J.C. Penney s announced the closing of the Military Highway location, while Ruby Tuesday shuttered thirty stores across the country and one here in Virginia Beach. Blockbuster fi nally threw in the towel and closed the last of its stores across the country, Radio Shack is closing 500 stores, Best Buy tried to go private, but could not obtain fi nancing and Barnes and Noble placed themselves for sale, but did not fi nd any suitors. The retail landscape is constantly changing and those tenants that do not change with it will be closing their doors. Hampton Roads is stable, new tenants are looking for locations within the market, and we are seeing new development. We do expect the vacancy rate to increase because of the amount of big box space that will come to the market, but we also expect rental rates to increases as quality retail product is limited at this time Hampton Roads Real Estate Market Review

5 HAMPTON ROADS MARKET SURVEY The Hampton Roads retail market contained approximately 54,222,598 square feet of gross leasable area ( GLA ) in 422 properties with an average asking rental rate of $15.97 with triple net charges (Common Area Maintenance, Real Estate Taxes and Insurance) running $2.87 per square foot. The US Census Bureau indicates the population of Hampton Roads is approximately 1.7 Million resulting in a square feet of retail supply per person. Certain methodological differences (e.g., the inclusion of freestanding buildings and malls in this survey) make it diffi cult to compare per capita supply in the MSA to a national average statistic. Hampton Roads consist of two markets, the Southside and Peninsula. The Southside market has approximately 35,835,277 square feet, roughly 66% of the total square footage in the market, in 288 properties. The average asking rent for small shop space increased $.20 over 2012 numbers to $16.56 triple net. The increase in rental rates can be attributed to consistent demand as vacancy rates remained low at 6.74% in While 89,200 square feet of new construction came on line in 2013, Hampton Roads has signifi cant amounts of new construction in the pipeline for The Peninsula also experienced some mixed change this past year. The 134 properties on the Peninsula that were surveyed combined for 18,387,321 square feet of product. The average asking price of small shop space was $14.61 per square foot with $2.69 in triple net charges. The vacancy rate for the greater Peninsula was 11.55%; however, activity and interest in the Peninsula market is strong in the fi rst quarter of The Williamsburg submarket rebounded as new ownerships were able to reposition previously faltering projects. In 2013, the Hampton Roads market did see a slight increase in the vacancy rate as 2012 s overall 7.85% vacancy rate gave way to 2013 s 8.37%. This increase is largely due to more Big Box space coming onto the market. While landlords and tenants continue to get creative in the deal making process and retailers are repositioning themselves within the market creating new developments, as well as second generation opportunities, local tenants are not as abundant as in years past. Landlords are approaching these second generation spaces with both traditional and non-traditional retailers to back fi ll the space. Unlike years past, the market was not saturated with retail product due to mass store closings; however, we expect a fair amount of big box retail space to enter in Specifi cally, K-mart and Sears present large blocks that may enter the market RETAIL We move forward acknowledging 2014 is off to a strong start. We will see the size of the overall market increase due to grocery store expansion as multiple new centers are currently under construction and will be opening this year. We will approach the older second generation space for re-use and redevelopment. It should be noted some of the larger vacant space highest and best use may no longer be retail. These spaces will continue to negatively impact the overall Hampton Roads numbers until such time as they are redeveloped. 17

6 2014 RETAIL Market Overview Table Number of Properties GLA in SF Vacant SF % Vacant New Construction in SF Occupied in SF Absorption in SF Southside ,835,277 2,416, % 89,200 33,418, ,392 Peninsula ,387,321 2,123, % 21,411 16,263,603 (280,018) Total ,222,598 4,540, % 110,611 49,682, ,374 Southside ,924,153 2,206, % 57,442 32,717,539 1,896,773 Peninsula ,532,649 1,989, % 6,576 16,543, ,368 Total ,456,802 4,195, % 64,018 49,261,160 2,672,141 Southside ,150,108 2,534, % 103,380 31,615, ,577 Peninsula ,494,461 1,944, % 999,389 16,550, ,099 Total ,644,569 4,478, % 1,102,769 48,165,695 1,576,676 Southside ,019,555 2,523, % 18,880 31,495, ,035 Peninsula ,548,407 2,175, % - 16,372, ,361 Total ,567,962 4,699, % 18,880 47,868,415 1,279,396 Southside ,535,280 2,714, % 302,352 30,820,766 (288,440) Peninsula ,160,963 2,392, % 981,463 15,768, ,777 Total ,696,243 5,107, % 1,283,815 46,589,019 74,337 Southside ,265,028 2,155, % 275,252 31,109, ,525 Peninsula ,112,012 1,706, % - 15,405,476 (109,898) Total ,377,040 3,862, % 275,252 46,514, ,627 Southside ,086,160 2,215, % 1,038,291 30,870, ,596 Peninsula ,133,079 1,617, % 1,009,000 15,515, ,485 Total ,219,239 3,833, % 2,047,291 46,386, ,081 Southside ,407,761 1,876, % 1,552,392 30,531,085 1,741,962 Peninsula ,895,155 1,480, % 1,042,451 15,414, ,788 Total ,302,916 3,356, % 2,594,843 45,945,974 2,318,750 Southside ,852,210 2,063, % 593,520 28,789,123 1,280,869 Peninsula ,337,458 1,499, % 618,179 14,838, ,097 Total ,189,668 3,562, % 1,211,699 43,627,224 1,967,966 Southside ,184,395 2,676, % 271,610 27,508, ,736 Peninsula ,799,778 1,648, % 185,000 14,151, ,338 Total ,984,173 4,324, % 456,610 41,659, ,074 Southside ,336,266 3,169, % 419,458 27,166, ,138 Peninsula ,094,161 2,027, % 330,000 14,066, ,018 Total ,430,427 5,197, % 749,458 41,233, ,156 Southside ,180,691 3,433, % 574,400 26,747, ,167 Peninsula ,546,085 1,891, % 676,000 13,654, ,008 Total ,726,776 5,324, % 1,250,400 40,402,046 1,467,175 Southside ,760,443 3,548, % 828,800 26,212,213 1,185,818 Peninsula ,906,530 2,183, % 202,750 12,722, ,563 Total ,666,973 5,732, % 1,031,550 38,934,871 1,428,381 Southside ,436,515 3,760, % 918,100 25,676,428 (158,181) Peninsula ,477,970 1,997, % 212,229 12,480, ,115 Total ,914,485 5,757, % 1,130,329 38,156,523 (11,066) Southside ,816,383 2,933, % 2,064,727 25,883,089 1,344,209 Peninsula ,249,617 2,012, % 758,370 13,236, ,785 Total ,066,000 4,945, % 2,823,097 39,120,069 1,636,994 Southside ,089,939 2,551, % 1,414,805 24,538,880 1,961,927 Peninsula ,548,482 1,604, % 1,253,342 12,944,195 1,592,805 Total ,638,421 4,155, % 2,668,147 37,483,075 3,554, Hampton Roads Real Estate Market Review

7 SOUTHSIDE SUBMARKETS There were 25 retail submarkets on the Southside in The average size of the submarkets was 1,433,411 square feet. The Hilltop submarket had a strong 2013 with vacancy decreasing from 3.27% in 2012 to 2.76% this past year and average small shop rents increasing from $21.14 to $21.83 per square foot, which is the highest asking rent of all Southside suburban submarkets. The range of vacancy rates in the Southside submarkets can be seen in the table below. SOUTHSIDE BY SUBMARKET Number of Properties GLA in SF Vacant SF % Vacant Small Shop Rate PSF BAY FRONT 6 304,258 25, % $18.20 BIRDNECK/OCEANFRONT 6 225, % $15.30 CAMPOSTELLA 6 332,921 85, % $12.39 CHESAPEAKE SQUARE 12 2,294,809 90, % $17.33 CHURCHLAND-PORTSMOUTH/HARBORVIEW 16 1,747,401 82, % $17.13 DAM NECK 8 1,520,256 42, % $20.00 DOWNTOWN 5 2,429,283 49, % $14.17 DOWNTOWN NORFOLK 1 50,000 10, % $28.00 GHENT 9 396,454 25, % $17.44 GREAT BRIDGE 18 1,371, , % $16.06 GREENBRIER/BATTLEFIELD BOULEVARD 25 4,134, , % $19.82 HILLTOP/GREAT NECK 13 1,600,943 44, % $21.83 HOLLAND/GREEN RUN ,800 46, % $13.93 INDIAN RIVER/COLLEGE PARK( including Chesapeake) 3 433,643 83, % $12.00 KEMPSVILLE 12 1,246, , % $15.59 LITTLE CREEK ROAD /WARDS CORNER/OCEAN VIEW 17 1,765, , % $16.23 LITTLE NECK 12 1,459,402 17, % $17.06 LYNNHAVEN ROAD (Virginia Beach Boulevard to Holland Road) 8 1,822, , % $16.20 MIDDLE PORTSMOUTH 15 1,770, , % $12.00 MILITARY HIGHWAY/JANAF 17 3,356,493 96, % $13.24 NEWTOWN ,596 82, % $12.90 ODU 1 49, % $21.00 PEMBROKE 23 2,824, , % $17.88 PORTSMOUTH 1 45,800 2, % $12.00 PRINCESS ANNE ROAD (from Kempsville Road to Holland Road) 14 1,731,761 72, % $17.23 SMITHFIELD 5 279,756 12, % $16.00 SUFFOLK 14 1,153,958 93, % $17.00 Total ,835,277 2,416, % $ RETAIL 19

8 2014 RETAIL PENINSULA SUBMARKETS There were 10 retail submarkets on the Peninsula with an average size of 1,671,574 square feet. The two largest Peninsula submarkets are now Patrick Henry and Williamsburg. The Patrick Henry submarket is anchored by a regional mall and has the lowest vacancy rate on the Peninsula. The Patrick Henry submarket continues to be one of the most highly desired submarkets in Hampton Roads having 4,374,256 square feet and a vacancy rate of just 3.75%. The Williamsburg market continues to have good retail activity along the Monticello corridor. PENINSULA BY SUBMARKET Number of properties GLA in SF Vacant SF % Vacant Small Shop Rate PSF COLISEUM CENTRAL 16 4,051, , % $15.40 DENBIGH 15 1,785, , % $11.25 FOXHILL/BUCKROE/EAST MERCURY 7 708,425 91, % $13.17 GLOUCESTER 8 894,676 68, % $14.38 HAMPTON MISC 1 64,327 10, % $10.00 NEWMARKET/MAIN (TO INCLUDE HAMPTON) , , % $9.48 NEWPORT NEWS 1 21,240 1, % $14.00 PATRICK HENRY/OYSTER POINT/KILN CREEK 30 4,200, , % $16.31 POQUOSON 2 108,521 5, % $13.50 WILLIAMSBURG 30 4,745, , % $18.64 YORK COUNTY ,376 70, % $14.41 Total ,387,321 2,123, % $14.61 RETAIL PRODUCT TYPE The Neighborhood Center remains the predominant product type with 173 properties with over 12 million square feet of GLA. The Community Centers comprised almost 10 million square feet with both product types showing a decrease in vacancy rate and an increase in rental rate. We do anticipate new Neighborhood Centers in 2014 and expect they will contain less small shop space than traditionally developed Hampton Roads Real Estate Market Review

9 Total Retail Product By Type Number of Properties GLA in SF New Construction in SF Vacant SF % Vacant Small Shop Rate PSF CAM PSF Neighborhood Center ,448,491 36,000 1,473, % $14.95 $2.71 Community Center 56 9,442,322 26,800 1,097, % $15.62 $2.41 Fashion/Specialty Center 10 1,551,243 26, , % $24.89 $4.03 Power Center 31 10,851, , % $19.67 $3.58 Theme Festival Center 1 100, No data No data No data Outlet Center 1 349, No data No data No data Other 57 2,177, , % $16.19 $3.02 Freestanding 82 8,482,893 21, , % $14.87 $3.31 Mall 11 8,818, , % $20.50 $17.75 Total ,222, ,611 4,540, % $15.97 $2.87 Southside By Type Neighborhood Center 125 9,150,514 36,000 1,084, % $15.50 $2.73 Community Center 36 5,721,904 26, , % $16.17 $2.41 Fashion/Specialty Center 8 1,068,243 26,400 80, % $24.75 $4.03 Power Center 21 6,616, , % $19.53 $3.58 Theme Festival Center 1 100, No data No data No data Outlet Center No data No data No data Other 40 1,433, , % $16.59 $3.03 Freestanding 49 4,994,709-35, % $17.12 $3.31 Mall 8 6,749, , % $20.50 $18.86 Total ,835,277 89,200 2,416, % $16.56 $2.95 Peninsula By Type Number of Properties Number of Properties GLA in SF GLA in SF New Construction in SF New Construction in SF Vacant SF Vacant SF % Vacant % Vacant Small Shop Rate PSF Small Shop Rate PSF CAM PSF CAM PSF Neighborhood Center 48 3,297, , % $13.54 $2.33 Community Center 20 3,720, , % $14.68 $2.54 Fashion/Specialty Center 2 483,000-54, % $26.00 $5.40 Power Center 10 4,235, , % $19.95 $3.00 Theme Festival Center No data No data No data Outlet Center 1 349, No data No data No data Other , , % $15.32 $2.53 Freestanding 33 3,488,184 21, , % $10.00 $2.50 Mall 3 2,068, , % #DIV/0! $17.75 Total ,387,321 21,411 2,123, % $14.61 $ RETAIL 21

10 2014 RETAIL BIG BOX VACANCY Big box vacancy increased in 2013 and is expected to climb again in The thought being several big box retailers limped into Additionally, a few small shop retailers are struggling as well. We will see tenants right size their units as they modify their footprints to stay current to what the market dictates. The boxes that we believe will bring the most product to market are K-Mart, Sears, and J.C. Penney. The 1,825,202 square feet of vacant space represents 40% of the total retail vacancy in the market. It is important to note some of the vacant boxes are now functionally or practically obsolete for today s retailer. They will remain on the report as retail product until such time as they are demolished, converted to a non-retail use, or redeveloped. Big Box Vacancy 4,000,000 3,500,000 3,000,000 Southside Peninsula TOTAL Vacant Square Feet 2,500,000 2,000,000 1,500,000 1,000, , Big Box Vacancy Southside ,073,115 2,207,416 2,220,935 1,906,391 1,513,523 1,142, , , ,688 1,102, , , , ,713 Peninsula ,328,841 1,435,489 1,407,021 1,556,029 1,141, , , , , , , , , ,489 TOTAL ,401,956 3,642,905 3,627,956 3,462,420 2,654,730 2,124,582 1,777,050 1,775,648 1,788,493 2,091,398 1,717,593 1,650,463 1,589,630 1,825, Hampton Roads Real Estate Market Review

11 Retail Submarkets Southside 1 Bayfront 2 Birdneck/Oceanfront 3 Campostella 4 Chesapeake Square 5 Churchland/Harbourview 6 Dam Neck 7 Downtown Norfolk 8 Ghent 9 Great Bridge 10 Greenbrier/Battlefield Boulevard 11 Hilltop/Great Neck 12 Holland/Green Run 13 Indian River/College Park 14 Kempsville 15 Little Creek Road/ Wards Corner 16 Little Neck 17 Lynnhaven 18 Middle Portsmouth 19 Military Highway/Janaf 20 Newtown 21 ODU 22 Pembroke 23 Princess Anne 24 Smithfield 25 Suffolk Peninsula 26 Coliseum Central 27 Denbigh 28 Foxhill/Buckroe 29 Gloucester 30 Hampton Miscellaneous 31 Patrick Henry 32 Poquoson 33 Newmarket/Main 34 Williamsburg 35 York County 2014 RETAIL 23

12 The following is a list of the properties included in this year s survey listed by submarket with a code representing the type of property The GLA of the property is also listed A Neighborhood Center B Community Center C Fashion/Specialty Center D Power Center E Theme Festival southside F Outlet Center G Other H Freestanding I Mall BAY FRONT Cape Henry Plaza A 58,424 Chic s Beach Shopping Center A 79,397 Kroger H 47,000 Kroger Shops A 13,540 Lake Shores Plaza Shopping Center A 58,230 Marina Shores G 47,667 BIRDNECK/OCEANFRONT Birdneck SC A 65,460 Birdneck Shoppes B 24,000 Farm Fresh H 29,296 Harris Teeter H 48,000 Linkhorn Shops A 48,899 Pacific Plaza H 9,695 CAMPOSTELLA Atlantic Commons A 63,393 Bainbridge Marketplace A 46,444 Campostella Corner A 43,375 George Washington Commons A 44,942 Holly Point SC A 65,338 Southgate Plaza A 69,429 CHESAPEAKE SQUARE BJ s H 115,660 Castle Shops H 37,464 Chesapeake Center B 270,602 Chesapeake Square Mall I 800,000 Chesapeake Square Shops H 13,559 Crossroads Center at Chesapeake Square D 332,464 Food Chesp. Sq. H 45,000 Home Depot H 130,060 Lowes H 115,000 Shops at Chesapeake Square H 25,000 Taylor Road Plaza A 60,000 Wal-Mart Supercenter/Sam s Club H 350,000 CHURCHLAND-PORTSMOUTH/HARBORVIEW Churchland Place Shoppes G 21,000 Churchland SC A 149,741 Churchland Square A 72,189 College Pkwy Crossing at Harbour View A 86,130 Grand H 30,000 Harbor View Shoppes A 17,000 Harbour View East D 172,000 Harbour View Marketplace H 96,624 Harbourview Station East D 217,308 Harbourview Station West D 83,007 Marketplace Square A 12,461 Planet Fitness Plaza A 52,966 Poplar Hill Plaza B 102,326 Sterling Creek A 75,660 Town Point Square A 58,989 Victory Crossing H 500,000 DAM NECK 2236 General Booth Blvd. A 11,500 Dam Neck Crossing B 138,571 Dam Neck Square A 67,917 General Booth Plaza A 71,639 Red Mill Commons D 750,000 Red Mill Walk D 240,000 Sandbridge SC A 66,800 Strawbridge Marketplace A 173,829 DOWNTOWN Berkley Center A 47,945 Church Street Crossing A 51,000 MacArthur Center Mall I 2,200,000 Waterside Festival Marketplace I 130,338 DOWNTOWN NORFOLK Wells Fargo Retail G 50,000 GHENT 201 Twenty One A 15,616 21st Street Pavilion G 21,000 Center Shops A 139,081 Colley Village A 44,585 Ghent Place G 13,000 Harris Teeter H 27,000 Palace Shops I, II C 78,669 Palace Station G 37,503 The Corner Shops G 20,000 GREAT BRIDGE Cahoon Commons D 278,023 Cedar Lakes Center A 35,659 Centerville Crossing A 46,000 Country Club Shoppes H 17,700 Crossings at Deep Creek A 68,970 Dominion Marketplace A 73,103 Dominion Plaza SC A 63,733 Glenwood Square A 73,859 Great Bridge SC A 156,937 Hanbury Village A 100,560 Harbor Watch Shoppes G 21,505 Las Gaviotas A 82,000 Millwood Plaza G 16,930 Mt. Pleasant Shopping Center A 100,000 Mt. Pleasant Village A 34,180 Wilson Village A 52,500 Woodford Shoppes B 9,760 Woodford Square B 139,623 GREENBRIER/BATTLEFIELD BOULEVARD Battlefield Marketplace G 30,000 Chesapeake Crossing B 287,679 Country Club Square H 12,600 Crossways Cntr I & Eden Way Shops D 438,725 Edinburgh Commons D 184,232 Edinburgh East D 133,000 Gainsborough Square A 88,862 Greenbrier Mall I 899,665 Greenbrier Market Center D 487,580 Greenbrier Shops A 37,500 Greenbrier South SC A 97,500 Home Depot H 130,060 K-Mart/OfficeMax H 165,000 Knell s Ridge Square G 40,000 Lowes H 114,000 Orchard Square A 88,728 Greenbrier A 83,711 Plantation Woods A 16,800 Regal Cinemas H 60,763 The Shoppes at Greenbrier G 40,000 Thn G 80,160 Towne Place at Greenbrier C 127,109 Village Square G 15,000 Volvo Parkway SC G 41,874 Wal-Mart/Sam s Club/Kohl s D 433,821 HILLTOP/GREAT NECK Great Neck Square A 94,587 Great Neck Village A 73,736 Hilltop East C 144,100 Hilltop North A 202,346 Hilltop Plaza B 152,025 Hilltop Square B 270,093 Hilltop West G 55,784 La Promenade C 63,280 Marketplace at Hilltop C 113,000 Mill Dam Crossing A 25,776 Regency Hilltop B 236,549 Renaissance Place G 47,667 Target H 122,000 HOLLAND/GREEN RUN Auburn Place A 42,709 Chimney Hill B 207,175 Green Run Square A 75,000 Holland Plaza SC A 155,000 Holland Windsor Crossing B 74,200 Lowes H 125,323 Lynnhaven Green A 50,838 Rosemont Center A 12,700 Shipps Corner A 63,355 Timberlake SC A 73,500 INDIAN RIVER/COLLEGE PARK( including Chesapeake) College Park I & II B 183,874 Indian River Plaza B 126,017 Indian River SC A 123,752 24

13 KEMPSVILLE Arrowhead Plaza A 97,006 Fairfi eld SC B 239,763 Kemps Corner Shoppes G 25,929 Kemps River Center A 62,507 Kemps River Crossing B 245,268 Kempsville Crossing A 94,477 Kempsville Plaza A 60,778 Parkway Marketplace A 26,602 Providence Square SC A 144,904 University Shoppes A 47,200 Witchduck Exchange A 50,000 Woods Corner A 152,314 LITTLE CREEK ROAD/ WARDS CORNER/OCEAN VIEW Ames/Kroger B 140,568 Dollar Tree Shopping Center A 51,415 East Beach Marketplace B 202,000 East Beach Shoppes A 63,000 Farm Fresh - Little Creek H 66,120 Glenwood Shoppes A 53,255 Little Creek and Tidewater Shops B 119,820 Little Creek Square A 82,300 Meadowbrook S C G 27,260 Mid-Town A 75,768 Mid-Way SC G 31,000 Ocean View SC A 73,658 Roosevelt Gardens SC A 109,175 Southern Shopping Center B 245,868 Super Wal-Mart H 225,000 Wards Corner Strip A 61,540 Wedgewood SC A 137,834 LITTLE NECK Birchwood SC A 358,635 Colony Building A 23,625 Home Depot H 130,060 Kroger H 45,000 London Bridge Plaza B 114,584 Lowes H 160,000 Lynnhaven 2600 H 13,300 Lynnhaven Convenience G 36,900 Lynnhaven Shopping Center B 191,136 Princess Anne Plaza West C 77,558 Regatta Bay Shops G 60,000 Sam s Club Plaza D 248,604 LYNNHAVEN ROAD (Virginia Beach Boulevard to Holland Road) Lynnhaven Crossing G 55,550 Lynnhaven East B 97,303 Lynnhaven Mall I 1,293,100 Lynnhaven North B 176,254 Lynnshores Shopping Center G 12,692 Lynnway Place G 30,213 Parkway Plaza A 44,287 Wal-Mart H 113,112 MIDDLE PORTSMOUTH Afton SC A 106,500 Airline Marketplace A 69,000 Airline Plaza A 99,549 Alexander s Corner Shopping Center A 50,826 Elmhurst Square A 66,250 Gilmerton Square A 43,236 Manor Commerce Center G 67,060 Manor Shops G 14,573 Old Towne Marketplace A 42,000 Rodman SC A 45,000 Super Wal-Mart H 200,000 Triangle SC A 84,437 Victory Crossing D 500,000 Victory West Shopping Center A 167,102 Williams Court B 214,739 MILITARY HIGHWAY/JANAF 3455 Azalea Garden Road A 1,024 Best Square B 140,030 Broad Creek Crossing Phase 1 and Phase 2 D 100,000 Broad Creek SC D 205,417 Bromley SC A 67,790 CostCo H 110,000 Dump/Mega Offi ce G 115,854 Farm Fresh H 60,000 Food Lion #170 H 41,000 Grand Outlet H 35,000 Janaf D 882,262 Lowes H 115,000 Military Crossing D 192,000 Military Triangle G 10,061 Super K-Mart & Shoppes B 200,000 Super Wal-Mart H 224,513 The Military Circle I 856,542 NEWTOWN Cypress Point A 117,958 Diamond Springs North (Shopping Center) A 23,880 Diamond Springs Shoppes H 18,840 Mattress Discounters Plaza A 59,892 Newpointe SC A 92,978 Newtown Baker Crossing A 91,687 Newtown Center H 19,800 Newtown Convenience Center G 19,800 Northampton Business Center G 85,000 Thomas Corner SC G 23,557 Wesleyan Commons Shopping Center A 54,204 ODU First Floor Retail Shops at University Village Apartments G 49,875 PEMBROKE Aragona SC A 69,700 Best Buy H 45,000 Collins Square A 123,870 Columbus Village East A 63,000 Columbus Village Entertainment Center E 100,000 Dean Plaza (Former HQ) D 140,000 Former Bloom Brothers H 165,000 Giant Square B 150,000 Goodwill H 34,000 Haverty s H 55,000 Haygood SC B 165,000 Haynes H 228,000 Hunter s Mill Shoppes G 22,827 Loehmann s Plaza C 139,380 Northern Super Center G 36,588 Pembroke East B 24,806 Pembroke Mall I 570,000 Pembroke Meadows SC A 81,592 Pembroke Place B 165,000 Pembroke Plaza G 34,900 Roomstore H 50,000 The Town Center of Virginia Beach C 325,147 Town Center Station B 36,185 PORTSMOUTH Academy Crossing A 45,800 PRINCESS ANNE ROAD (from Kempsville Road to Holland Road) Brenneman Farm SC A 254,197 Courthouse Marketplace A 103,263 Home Depot H 130,000 Kempsville Marketplace A 71,460 Landstown Commons D 505,766 Lynnhaven Square S C G 22,933 Parkway SC A 64,820 Pleasant Valley Marketplace A 88,107 Princess Anne Marketplace B 209,500 Princess One SC A 84,725 Salem Crossing D 92,316 Salem Lakes Marketplace A 42,087 Salem Lakes SC A 37,087 Woodtide SC A 25,500 SMITHFIELD Cypress Run SC G 25,000 Eagle Harbor A 77,049 Shoppes at Eagle Harbor A 23,343 Smithfi eld Plaza B 89,120 Smithfi eld Square A 65,244 SUFFOLK Bennetts Creek Crossing A 119,812 Bennetts Creek Food Lion A 64,544 Centerbrooke Village A 12,600 Creekside Village A 18,835 Holland Plaza A 69,345 Kensington Square A 66,421 Lowes H 150,000 Oak Ridge Plaza A 38,700 Suffolk Plaza B 176,733 Suffolk Plaza West A 60,000 Suffolk Shopping Center B 155,733 Suffolk Specialty Shops G 15,200 Suffolk Village SC G 11,875 Wal-Mart Super Center H 194,160 25

14 PENINSULA COLISEUM CENTRAL Coliseum Corner A 49,267 Coliseum Crossing B 221,004 Coliseum Marketplace A 105,998 Coliseum Specialty Shops G 15,026 Coliseum Square G 43,307 Hampton Towne Centre D 376,100 Hampton Woods A 89,092 Home Depot H 130,060 Newmarket South D 368,085 Peninsula Towncenter I 1,174,389 Riverdale Plaza D 260,316 Sports Authority H 40,000 Target H 122,000 The Power Plant D 621,150 Todd Center & Todd Lane Shops B 242,000 Wal-Mart Super Center H 193,316 DENBIGH Beaconsdale SC A 28,000 Denbigh Speciality Shops G 24,504 Denbigh Village Centre B 334,299 Denbigh Village Shopping Center H 327,322 Ferguson Center G 118,000 Former Hills Denbigh H 86,589 Jefferson Crossing (formerly Denbigh Crossing) A 145,000 Kmart H 115,854 Lee Hall Plaza A 36,000 Newport Crossing B 200,000 Richneck Shopping Center A 63,425 Stoneybrook Shopping Center A 74,340 Turnberry Crossing A 53,775 Village Square A 40,000 Warwick Denbigh SC B 137,925 FOXHILL/BUCKROE/EAST MERCURY Buckroe SC A 76,000 Farm Fresh Phoebus H 60,411 Kmart H 94,500 Langley Square A 120,646 Nickerson A 75,850 Nickerson Plaza A 83,849 Willow Oaks Village Square S.C. B 197,169 GLOUCESTER Food Lion H 40,000 Hayes Plaza SC A 52,651 Hayes SC A 100,000 Home Depot H 100,000 Lowe s H 125,000 Shoppes at Gloucester B 82,025 Wal-Mart Super Center H 220,000 York River Crossing B 175,000 HAMPTON MISC Kecoughtan SC A 64,327 NEWMARKET/MAIN (TO INCLUDE HAMPTON) 4113 W Mercury Blvd. H 49, W. Mercury Blvd. H 28,080 Brentwood SC A 53,600 Dresden SC G 35,000 Forest Park Square B 150,000 Fransisco Village A 55,865 Hampton Plaza B 173,199 Hilton SC A 74,000 Midway Shopping Center G 58,780 Newmarket B 117,377 Warwick Center A 103,886 Warwick Village A 75,400 NEWPORT NEWS Jefferson Shoppes A 21,240 PATRICK HENRY/OYSTER POINT/KILN CREEK Bayberry Village A 72,883 Best Buy Building H 135,000 City Center C 230,000 Commonweatlh Center G 30,279 Fairway Plaza G 37,950 Glendale SC G 30,000 Grand Furniture H 35,000 Harris Teeter H 52,334 Haverty s H 45,000 Haynes H 85,000 Hidenwood SC A 100,000 Jefferson Commons D 400,000 Jefferson Greene G 57,430 Kroger H 55,000 Lowes H 120,000 Market Oyster Point A 69,660 Newport Marketplace D 450,000 Newport Square B 184,126 Offi ce Depot H 30,122 Oyster Point Plaza A 73,197 Oyster Point Square A 83,089 Patrick Henry Mall I 714,607 Patrick Henry Place A 17,000 Sam s Club H 133,880 The Shoppes at Oyster Point G 30,000 Victory Kiln Creek A 78,000 Village Kiln Creek B 267,021 Villages of Kiln Creek G 45,300 Wal-Mart Super Center H 201,146 Yoder Plaza SC D 337,053 POQUOSON Poquoson SC A 57,458 Wythe Creek Plaza SC A 51,063 WILLIAMSBURG Colony Square A 66,806 Governor s Green SC A 100,000 Home Depot H 130,000 James York Plaza B 137,708 Kingsgate Green B 138,348 Lowes H 163,000 Marketplace Shoppes G 32,026 Marketplace Shopping Center A 36,000 Monticello Marketplace B 299,792 Monticello SC A 82,000 New Town Shops on Main C 253,000 Norge Crossing H 52,000 Olde Towne SC G 30,000 Prime Outlets F 349,927 Quarterpath Crossing A 85,600 Settlers Market at New Town D 232,808 Staples H 37,400 The Marquis (Phase I) D 1,000,000 The Shops at High Street B 114,449 Village Shops at Kingsmill G 82,200 Wal-Mart SuperCenter H 210,000 Williamsburg Crossing A 150,000 Williamsburg Farm Fresh A 79,188 Williamsburg Marketcenter B 120,920 Williamsburg Outlet Mall I 180,000 Williamsburg Pavillion Shops G 50,000 Williamsburg SC I & II B 251,000 Williamsburg Towne and Cnty A 49,802 WindsorMeade Marketplace D 189,605 Yankee Candle H 42,000 YORK COUNTY Grafton SC A 32,000 Heritage Square A 73,865 Kiln Creek Center A 45,700 Lakeside 17 H 8,400 Yorktown A 73,050 Patriots Square A 47,231 Pavilion at Kiln Creek A 26,820 Shady Banks SC A 56,634 Wal-Mart SuperCenter H 220,000 Washington Square Shopping Center B 177,056 York Square A 48,720 Yorkshire Downs G 23,900 26