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Advantis
Virginia’s Industrial
Market Projects Significant Growth
Hampton Roads: The
flood gates are about to burst!
For several years, Hampton Roads has experienced an industrial
vacancy rate below 6 percent, which, along with a significant
increase in port activity,
has caught the attention of the development community. What’s lacking
is high-bay, modern distribution space that can facilitate the needs of the
growing Port of Virginia.
The Virginia Port Authority states that in 2004 1.8 million TEUs (20-foot equivalent
units) passed through the Ports of Hampton Roads. That number is expected to
exceed 2 million in 2005. The amount of cargo correlates to approximately 15
million square feet of industrial space. Studies suggest by 2030 the amount
of cargo will increase to 5 million TEUs, which will require 45 million square
feet of industrial space.
Fortunately, industrial developers
are preparing to meet this demand.
Eight new development projects have been announced, totaling more than
2.5 million square feet Two of those projects include Enterchange at Suffolk
and
Enterchange at Hampton by Devon USA. In Suffolk, plans call for 750,000
square feet of high base space on a recently acquired 72-acre parcel on
Benton Road.
In Hampton, Devon USA acquired a 46-acre parcel for 645,000 square feet
of high distribution space. In addition, Ashley Capital acquired a 12-acre
parcel
off Indian River Rd., in Chesapeake to develop a 200,000 square feet high
bay distribution center. And, Waverton Associates will develop two buildings
comprising
more than 200,000 square feet in Waverton Industrial Village in Portsmouth.
With these announcements, 2005, 2006 and 2007 will be banner years for
development. The landscape of the industrial market in Hampton Roads is
getting ready to
change forever. Open up the gates! Richmond Market: Steady and Sure Growth
The Richmond industrial market has shown a modest improvement with a 1.62 percentage
point decrease in vacancy from first quarter 2004 to first quarter 2005.
Recent significant leases include the 246,615 square feet renewal of Dominion
Packaging at Meade Westvaco, Cavalier Telephone’s 84,000-square-foot
sublease at Northrun and Ryder Integrated Logistics' 71,000-square-foot lease
at the DuPont Warehouse Complex.
As vacancy rates decline and new demand continues
to increase, the focus moves to new projects in the pipeline. “We believe that demand and absorption
will continue to grow, and we are optimistic and excited to be involved in
many new projects,” says Scott Keeton, an Advantis/GVA broker specializing
in industrial properties.
These projects include:
• The Byrd Center Business Park, adjacent to Richmond International Airport
in eastern Henrico County, where the developer/owner has acquired additional
land
and is poised to develop 160,000 square feet of new office/warehouse flex
space;
• The availability of 217 acres of M-2 zoned
industrial land, which Advantis/GVA brought to market in Hanover County,
near the much-in-demand Hanover Air
Park; and
• Stonehouse Commerce Park, strategically located
between Richmond and Hampton Roads along I-64, where Advantis/GVA represents
a property owner
that is ready
to build 300,000 square feet of industrial/distribution space.
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