WILLIAMSBURG, Va., July 11, 2008 — Slowing employment growth and a weak housing market will result in more modest demand for retail space in Norfolk/Hampton Roads this year, despite reduced construction activity, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. While many local employers are expected to shelve hiring plans in the new few months, some job growth will be generated by government-related defense spending.
“Investors may want to consider opportunities in the Norfolk/Chesapeake submarket; conditions in the area remain tight, and additions to stock are expected to remain tight during the next few years,” says Gary Lucas, regional manager of the Southeast Virginia office of Marcus & Millichap.
Following are some of the most significant aspects of the Southeast Virginia Retail Research Report:
Employers are forecast to expand payrolls by 4,300 positions this year, a 0.6 percent increase.
Developers are expected to add 600,000 square feet of space to the market in 2008.
Vacancy is projected to end the year at 7.8 percent.
Asking rents are expected to rise 1.5 percent to $15.36 per square foot.
Effective rents will push up 1 percent to $13.61 per square foot.
For a copy of the complete Southeast Virginia Retail Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
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