Armada Hoffler Completes Full-Floor Office Lease at Town Center of Virginia Beach
Armada Hoffler (NYSE: AHH) has completed a significant office lease with Trader Interactive at Town Center of Virginia Beach. The deal involves a full 12,000-square-foot floor at 222 Central Ave., setting a new benchmark for office rent per square foot in the location. The lease contributed to increasing the occupancy rate of Town Center's 800,000 square feet of office space from 95% to 98% in Q4 2024.
The development saw over 110,000 square feet of new office leases and renewals in 2024, with overall rental rates increasing 20% since 2020. The 23-story building features 324,000 square feet of office space, 38,500 square feet of retail space, and a nine-story parking garage. The broader Town Center mixed-use district encompasses 620,000 square feet of retail space, 800,000 square feet of office space, and 760 apartments across 17 blocks and 25 acres.
Armada Hoffler (NYSE: AHH) ha concluso un'importante locazione d'ufficio con Trader Interactive presso il Town Center di Virginia Beach. L'accordo riguarda un intero piano di 12.000 piedi quadrati al 222 Central Ave., fissando un nuovo standard per l'affitto d'ufficio per piede quadrato nella zona. La locazione ha contribuito ad aumentare il tasso di occupazione degli 800.000 piedi quadrati di spazi per uffici del Town Center dal 95% al 98% nel quarto trimestre del 2024.
Lo sviluppo ha visto oltre 110.000 piedi quadrati di nuove locazioni d'ufficio e rinnovi nel 2024, con tassi di affitto complessivi aumentati del 20% dal 2020. L'edificio di 23 piani presenta 324.000 piedi quadrati di spazi per uffici, 38.500 piedi quadrati di spazi commerciali e un parcheggio di nove piani. Il più ampio distretto mista del Town Center comprende 620.000 piedi quadrati di spazi commerciali, 800.000 piedi quadrati di spazi per uffici e 760 appartamenti distribuiti su 17 isolati e 25 acri.
Armada Hoffler (NYSE: AHH) ha completado un importante contrato de arrendamiento de oficinas con Trader Interactive en el Town Center de Virginia Beach. El acuerdo implica un piso completo de 12,000 pies cuadrados en 222 Central Ave., estableciendo un nuevo estándar para el alquiler de oficinas por pie cuadrado en la ubicación. El contrato contribuyó a aumentar la tasa de ocupación de los 800,000 pies cuadrados de espacio de oficinas del Town Center del 95% al 98% en el cuarto trimestre de 2024.
El desarrollo vio más de 110,000 pies cuadrados de nuevos arrendamientos de oficinas y renovaciones en 2024, con las tasas de alquiler generales aumentando un 20% desde 2020. El edificio de 23 pisos cuenta con 324,000 pies cuadrados de espacio de oficinas, 38,500 pies cuadrados de espacio comercial y un garaje de estacionamiento de nueve pisos. El distrito de uso mixto más amplio del Town Center abarca 620,000 pies cuadrados de espacio comercial, 800,000 pies cuadrados de espacio de oficinas y 760 apartamentos distribuidos en 17 manzanas y 25 acres.
Armada Hoffler (NYSE: AHH)는 비치의 타운 센터에 위치한 Trader Interactive와 중요한 사무실 임대 계약을 체결했습니다. 이번 거래는 222 Central Ave.에 위치한 12,000 제곱피트의 전체 층을 포함하며, 이 지역의 사무실 제곱피트 임대료에 대한 새로운 기준을 설정합니다. 이 임대 계약은 타운 센터의 800,000 제곱피트 사무실 공간의 점유율을 2024년 4분기까지 95%에서 98%로 증가시키는데 기여했습니다.
개발은 2024년에 110,000 제곱피트 이상의 새로운 사무실 임대와 갱신을 보았으며, 전반적인 임대료는 2020년 이후 20% 상승했습니다. 이 23층 건물은 324,000 제곱피트의 사무실 공간, 38,500 제곱피트의 소매 공간, 9층 주차장을 포함하고 있습니다. 보다 넓은 타운 센터 혼합 용도 지구는 620,000 제곱피트의 소매 공간, 800,000 제곱피트의 사무실 공간 및 17 블록과 25에이커에 걸쳐 760개의 아파트를 포함하고 있습니다.
Armada Hoffler (NYSE: AHH) a signé un bail de bureau important avec Trader Interactive au Town Center de Virginia Beach. L'accord concerne un étage complet de 12 000 pieds carrés au 222 Central Ave., établissant une nouvelle référence pour le loyer des bureaux par pied carré dans cet endroit. Le bail a contribué à faire passer le taux d'occupation des 800 000 pieds carrés d'espace de bureau du Town Center de 95 % à 98 % au quatrième trimestre 2024.
Ce développement a enregistré plus de 110 000 pieds carrés de nouveaux baux de bureaux et de renouvellements en 2024, avec des taux de loyer ayant augmenté de 20 % depuis 2020. Le bâtiment de 23 étages dispose de 324 000 pieds carrés d'espace de bureau, de 38 500 pieds carrés d'espace de vente au détail et d'un parking à neuf niveaux. Le plus vaste district à usage mixte du Town Center comprend 620 000 pieds carrés d'espace de vente au détail, 800 000 pieds carrés d'espace de bureau et 760 appartements répartis sur 17 blocs et 25 acres.
Armada Hoffler (NYSE: AHH) hat einen bedeutenden Büro-Mietvertrag mit Trader Interactive im Town Center von Virginia Beach abgeschlossen. Der Vertrag betrifft eine gesamte Fläche von 12.000 Quadratfuß in der Central Ave. 222 und setzt einen neuen Maßstab für die Büromieten pro Quadratfuß in dieser Lage. Der Mietvertrag trug dazu bei, die Belegungsrate der 800.000 Quadratfuß Bürofläche des Town Centers im vierten Quartal 2024 von 95 % auf 98 % zu erhöhen.
Die Entwicklung verzeichnete 2024 über 110.000 Quadratfuß neuer Bürovermietungen und Vertragsverlängerungen, wobei die Gesamtmietpreise seit 2020 um 20 % gestiegen sind. Das 23-stöckige Gebäude verfügt über 324.000 Quadratfuß Bürofläche, 38.500 Quadratfuß Einzelhandelsfläche und ein neunstöckiges Parkhaus. Der größere Mischbereich des Town Centers umfasst 620.000 Quadratfuß Einzelhandelsfläche, 800.000 Quadratfuß Bürofläche und 760 Wohnungen über 17 Blocks und 25 Acres verteilt.
- Occupancy rate increased from 95% to 98% in Q4 2024
- Office rental rates up 20% since 2020
- 110,000+ square feet of new leases and renewals in 2024
- Set new benchmark for office rent per square foot
- None.
Insights
The lease agreement represents a strategic win for Armada Hoffler, marking several key achievements in their Town Center of Virginia Beach property. The 98% occupancy rate, up from 95% in Q3 2024 and a 20% increase in rental rates since 2020 demonstrate exceptional performance against the backdrop of a challenging national office market.
The transaction's significance lies in multiple factors: 1) Setting a new benchmark for per-square-foot office rent, 2) Achieving near-full occupancy in an 800,000 sq ft office portfolio and 3) Securing 110,000 square feet of new leases and renewals in 2024. The company's decision to relocate its own operations to accommodate tenant demand shows astute asset management, maximizing portfolio value through strategic space utilization.
The tenant mix, including CAR Group's North American headquarters and long-term tenants since 2003, indicates strong property fundamentals and tenant satisfaction. The mixed-use nature of the development, with retail, office and residential components, creates a self-sustaining ecosystem that helps maintain occupancy and rent growth even during broader market weakness.
This lease transaction signals important market dynamics in the secondary office markets. While major metropolitan areas struggle with office vacancies post-pandemic, Virginia Beach's Town Center demonstrates resilience through its mixed-use format. The 20% rental rate growth since 2020 is particularly noteworthy, outperforming many primary markets during a period of significant office sector disruption.
The successful attraction of Trader Interactive, a digital marketplace company, underscores a key trend: suburban mixed-use developments are increasingly attractive to technology-focused companies seeking environments that aid in talent recruitment and retention. The combination of Class A office space with retail and residential amenities creates a compelling value proposition in the competition for knowledge workers.
Trader Interactive to occupy 12,000 square feet following transaction that underscores significant office activity at mixed-use district
VIRGINIA BEACH, Va., Jan. 13, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) closed out a momentous year of office leasing activity at Town Center of Virginia Beach with the completion of a lease with Trader Interactive. Virginia Beach-based Trader Interactive leased a full 12,000-square-foot floor at Armada Hoffler’s flagship mixed-use development.
Armada Hoffler’s lease with Trader Interactive established a new benchmark for office rent per square foot at Town Center of Virginia Beach. Lease terms were not disclosed.
Trader Interactive is set to occupy the top floor of the 222 Central Ave. building, which was previously occupied by Armada Hoffler. To meet the significant demand for office space in Town Center of Virginia Beach, Armada Hoffler relocated and consolidated its team’s space. That enabled Armada Hoffler to create additional value within its existing portfolio.
Occupancy of Town Center of Virginia Beach’s 800,000 square feet of office space increased from
“It is exciting to accommodate the growth of a Virginia-based business like Trader Interactive,” said Shawn Tibbetts, Chief Executive Officer and President of Armada Hoffler. “Town Center of Virginia Beach continues to buck national office real estate trends because it offers tenants a dynamic, all-encompassing environment for their employees to work, live and spend time in. This is essential to attract and retain corporate talent.”
Trader Interactive connects buyers and sellers in the lifestyle vehicle and commercial equipment industries through a portfolio of leading online marketplaces, reaching over 17 million monthly visitors. Its renowned "Trader" brands—Cycle Trader, RV Trader, Equipment Trader, and Commercial Truck Trader—along with the new marine brand, Boatmart, offer digital solutions, data insights, and business intelligence tools to help businesses grow and succeed.
"We’re excited to partner with Armada Hoffler to create an office space that embodies the forward-thinking and dynamic spirit of Trader Interactive," says David McMinn, CEO of Trader Interactive. " Establishing a new presence in Town Center of Virginia Beach is especially meaningful to us, as it’s where our journey began. As we continue to grow, we’re proud to establish a home base that not only positions us for success but also allows us to give back to the local community that has supported us along the way."
Known locally as the Armada Hoffler Tower, the 23-story building that Trader Interactive is joining features 324,000 square feet of office space, 38,500 square feet of street-level retail space and a nine-story parking garage. Six of the building’s office tenants have remained in the building since its 2003 opening. The building is also home to the North American headquarters of CAR Group Ltd., a publicly-traded international firm with over
The overall Town Center of Virginia Beach mixed-use district includes 620,000 square feet of retail space, 800,000 square feet of office space and 760 apartments spanning 17 blocks and 25 acres. This is a shining example of a successful public-private partnership with the City of Virginia Beach.
The Trader Interactive lease was brokered by Perry Frazier and Chris Kieran of Colliers International and Michael Divaris, Krista Costa and Ashley Beck of Divaris Real Estate.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
Contact:
Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248
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