Armada Hoffler Finalizes Lease with KPMG LLP at Town Center of Virginia Beach
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Insights
The leasing of office space to KPMG by Armada Hoffler represents a significant milestone in commercial real estate, particularly within the mixed-use development sector. The occupancy rate, now at 98%, is indicative of a robust demand for high-quality office spaces that provide a blend of amenities and accessibility. This is reflective of broader market trends where businesses prioritize locations that offer convenience and a holistic work environment.
From a market perspective, such high occupancy rates can serve as a bellwether for the health of the local economy and the commercial real estate market. It suggests that the area is attractive to major firms, which could lead to increased investment and development in the region. For investors, such developments can signal potential for growth in property values and rental income stability, especially when anchored by tenants with strong credit profiles like KPMG.
Armada Hoffler's announcement regarding KPMG's lease is a positive indicator for the company's financial performance. The lease not only boosts the occupancy rates but also diversifies the tenant mix, potentially enhancing the revenue stability and quality for Armada Hoffler. The presence of a reputable tenant like KPMG may also increase the property's appeal to other prospective tenants and investors, possibly leading to favorable lease terms in the future.
For stakeholders, the long-term benefits include a steady stream of rental income and the potential for asset appreciation. This transaction could be reflected in the company's future earnings and valuations. However, it is important to consider the terms of the lease, as they will impact the direct financial implications for Armada Hoffler. The duration, rental rates and any concessions granted to KPMG will determine the actual profitability of the deal.
The success of the Town Center of Virginia Beach as a mixed-use development is a testament to the effectiveness of public-private partnerships in urban development. The high occupancy rate achieved by Armada Hoffler is a result of strategic location and the creation of a community that combines living, working and retail spaces. This approach aligns with contemporary urban planning philosophies that emphasize walkability and experiential retail, which are becoming increasingly important as companies and employees look for more integrated work-life environments.
For the city of Virginia Beach, this development may lead to increased tax revenues, job creation and economic activity. It can serve as a model for other cities looking to revitalize their business districts. The long-standing tenancy of some of the building's occupants since its inception in 2003 also demonstrates the location's ability to retain businesses, which is a crucial aspect of sustainable urban development.
Professional services firm brings REIT’s office space in flagship mixed-use development to
VIRGINIA BEACH, Va., Jan. 04, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) announces a new office tenant at Town Center of Virginia Beach, its longtime corporate headquarters. The Company completed a new lease with KPMG LLP, the U.S. audit, tax and advisory firm.
Beginning January 2024, KPMG will occupy 13,044 square feet, bringing the mixed-use property’s office space to
“We continue to see demand for core mixed-use communities as top destinations for class A companies. We are thrilled to bring another global office tenant to our flagship mixed use development, Town Center of Virginia Beach,” said Louis Haddad, President and CEO of Armada Hoffler. “This new lease underscores the strength of our diversified approach and desirability of mixed-use environments to office tenants that value amenities, walkability and easy access to experiential retail.”
“Our new office at Town Center of Virginia Beach will allow our more than 160 KPMG professionals to collaborate, work, and meet as a team in a new modern space in the heart of our business district,” said Jason Kies, KPMG Norfolk office managing partner. “We have a longstanding commitment to the region, and this is the exciting next phase. This is an amazing opportunity for our people to work and collaborate in a vibrant neighborhood. I’m looking forward to moving into this modern, efficient, and flexible space that will allow our teams to continue to grow and thrive as we are surrounded by an energetic business community.”
Divaris Real Estate represented Armada Hoffler in the transaction and serves as the company’s landlord representative at Town Center of Virginia Beach. Cushman & Wakefield | Thalhimer represented KPMG.
Known locally as the Armada Hoffler Tower, the 23-story building 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 overall Town Center of Virgina 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.
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
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248
Katelyn Schultz
KPMG LLP
Manager, Corporate Affairs
Email: katelynschultz@kpmg.com
Phone: (563) 468-1848
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