Dominion Boulevard Corridor Study (Final)

8 . 100 year storm for drainage instead of 10 year 9 . Dominion Blvd Economic Dev. Node- Utilize for recreation uses (ie. parks/golf courses and have some retail located near existing developed areas) 10 . Pleasant Grove Economic Development Node- Utilize for recreational uses (ie. Dismal Swamp/Canal, trails) Open Space/ Stormwater Station 1 . Likes the Pleasant Grove Pkwy alignment, especially near West Road 2 . Ample green space- good 3 . Doesn’t like the conservation designation on his property (Teeuwen Greenhouses) 4 . Impervious surfaces create a problem for drainage . Need to provide for pervious surfaces, porous 5 . The plans are looking good . It’s good to have a plan up front so that growth doesn’t happen willy-nilly when Veterans Bridge opens 6 . Consider closing Shillelagh Road ditch (culvert) in urban area at Dominion Blvd 7 . Bike paths along recreational ditches are good 8 . Try and preserve open space for a middle school near Grassfield High School 9 . Need to replace Deep Creek lock bridge 10 . Need to consider who would maintain and protect ditch features 11 . Need facilities and amenities to keep people here . Not strip centers and cookie cutter subdivisions 12 . Concerned about impact of storm drainage on Bells Mill Rd . area 13 . Bike paths are needed along roads in the area . Not good now 14 . Forested area at end of Vincek Way is gone now 15 . Maybe consider collecting water and using it to serve water needs of residents & businesses 16 . Cahoon Pkwy alignment is a little off 17 . More connectivity for Herring Ditch Road not good 18 . Newer stormwater management systems are good (examples) Appendices | 145

Standard 2-Way Street Planting Strip/ Planting Strip/ provides multimodal Building Offset Sidewalk Rain Garden Parking Lane Bike Lane Drive Lane Drive Lane Bike Lane Parking Lane Rain Garden Sidewalk Building Offset options with space for pedestrians, 80.00' cyclists, and cars 146 | Appendices DOMINION BOULEVARD CORRIDOR STUDY | Chesapeake, Virginia

Urban Center Street Sidewalk Tree Parking Lane Bike Lane Drive Lane Bike Lane Parking Lane Tree Sidewalk Sidewalk Provides flexible extra space on the sidewalks Extension Sidewalk Grates Drive Lane Grates Extension which can be used for cafe seating or planters 78.00' Appendices | 147

Linear Park Street A standard 2-way street that provides Transitional Water Quality Multipurpose Path Planting Strip/ Parking Lane Bike Lane Drive Lane Drive Lane Bike Lane Parking Lane Planting Strip/ Sidewalk Building Setback Landscape greenspace connections throughout the area Rain Garden Rain Garden 85.00' 148 | Appendices DOMINION BOULEVARD CORRIDOR STUDY | Chesapeake, Virginia

Building Setback Sidewalk Planting Strip Bike Dive Lane Dive Lane Turn Lane Planting Strip Dive Lane Dive Lane Bike Planting Strip Sidewalk Building Setback Lane Lane Parkway 108.00' Parkways provide important east-west connections through the area Appendices | 149

id C d l Dominion Boulevard Corridor Prepared for City of Chesapeake | Chesapeake, Virginia | April 11, 2014 B Market Study i i Robert Charles Lesser & Co. Real Estate Advisors | rclco.com D

by The upon 2026 2026 the to report and to was be Strategic and the a and and strategy supported substantial by sectors. build will Chesapeake Chesapeake on work Plan This Economic and demographic goal Our household and could that Dominion the projections of assessment center commercial, market-driven allocation Objectives j hub economic thriving driven and location startup and energy effort planning Study Forward Forward the the in in current the complement Comprehensive 2035 corridor. the of development Market and Analysis relevant analyzed region. and city, area, population present and projections or trends of development the into Development Economic and long-term and short- An included: employment py major j a ret Background and g a is Chesapeake of City The and infrastructure excellent sustainable the of growth Corridor Boulevard Dominion established established foundation foundation the the and Plan Comprehensive Chesapeake Forward Moving for strategy a develop Demographic the contains Analysis. and Research and researched RCLCO study the for data economic past City’s the understand understand and characteristics incorporation fo 13 24 31 38 38 43 53 59 61 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 3 • • • Contents Key Findings Employment Cores Analysis and Demographics Economics Office and Industrial Market Retail Market Market Retail For-Sale Residential For-Rent Residential Critical Assumptions Appendix 2

Key Findings 3 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

Technologies, well as Industries, home home primary primary which growth attractive very of cost low location and Industrial Support both both to to tied tied home retirement is region relatively the base, amenity including: Military is is region region to and The growth. given climate, Military Employment Growth area Technologies, the the in in jobs to job upon households nice the growth growth related of schools, ocean. to Communication dependent groups good the to Economy and Demographics sectors others. Household Household development less both living, close p as is for • PROJECTED g Total Employment Growth Excluding Military Beach years. (military, have to that and additional (VA 20 grown projected growth Professional Construction.In y p MSA next economic bring y the has are to News in growth moderate region the which government) and growth. growth. future of sectors including region and Services, working is Chesapeake Virginia Beach-Norfolk-Newport News, VA-NC MSA; 1990-2040 Office Employment Growth NOTE: This Data does not include military or government employment g y Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Key Findings – g y Beach-Norfolk-Newport Virginia The see to poised is MSA) upon industries the of Many transportation, contractors, future future weak weak to to moderate moderate strong are there However, the impact positively should Health Services, Business of City the addition, Annual Employment Growth 0 Source: Moody’s Economy.com 000 5,000 5,000 -15,000 -10,000 -20,000 10,000 20,000 000 15,000 25,000 000 -25 15 -5 • • 4

is of and and Long- it SF) is rental is losses is 2014 market 2014Q1 peak defense Services office-oriented that in (96M market and industrial development p decrease. Utilities Opportunities buildings, but office of as the below growth, growth, impacted region. unique space rates to large and old recovery, the rates employment employment which the in Business other market. is industrial industrial vacancy future for industrial the after future. of in suggesting Vacancy $16.44/fs, companies and as office region The 8% challenge to expected increase Transportation, obsolescence still at to to sequestration well the of SF). only lead foreseeable is 2013, well. rents tied tied is is Professional as bolster Roads amount with The that are to Trade, the the opportunities. market than as recovery average growth growth by contracting in help Hampton the (48M well SF. jobs j Trade) expected but for to pp office better be in and Office Office challenged growth Services will double space relatively $5/nnn of is decrease tied is niche The to be 11.5%, was government the Health The almost office to close types yp the (Manufacturing, Manufacturing 2001-2010, to industrial finding g Office: expected soon will were $18.41/fs. $18.41/fs. 2013 and term, and employment Industrial: has than performing rates that from expected in and o o year a with a market study study of slowly and large large also study currently There market rental strong. g as rates rents rate. in Retail region 20+ as within the the is up a a However, long-term However, well and which, well. a current understanding are has has housing the is increasing. rental short-term as Vacancy average quickly. the over critical finished where where market prices still still system. and in market the ago. remain rentals 6.5%, downturn, as as area as be the an region region the recovery, For-sale are in years should stabilized. at $13/nnn relatively so grow an for not is and understand understand provide residential Home Roads opportunity residential rents recently additional few multifamily were the growth, will Market forecast long-term market the of start to slated is understanding However, to to opportunity opportunity as well as for-sale The Recession. Great HamptonRoads Hampton The The through work to continued a to market. for-sale short-term for-rent The and low are development for opportunity a was it as strong market apartment both includes have to appears 2014Q1 of as approximately at during construction rec Key Findings – g y a completing While state current the horizon, that project development timeframe. five-year the the with with us us provides provides region, the into fits area opportunities. short-term residential: For-sale the from recovering down. down. is is inventory inventory foreclosures of number point indicators all the in health strong a represents area. residential: For-rent Vacancies strong. very new o o o • 5

Study Area Relative to the MSA and the City of Chesapeake Source: Google; RCLCO Google; Source: RCLCO growth to location of of City City is and Great do and cores cores newest the as the in bridges g the rate, area the lane four is There interstate future end, are there a has the To Airport. favorable strong the the in in Bridge, The of east live to employment employment region’s development eliminating many y higher of a to Carolina. an into the for northern the area College School. Regional long-term acres acres 10,000 10,000 Steel the of is It place region’s s region the of some additional constructed, Since toll. a projectedtobeata desirability the widened being North turned be promising at development study the Community High Grassfield Chesapeake provides subjectareaisina growth. southwest corridor. well-regarded the the of of has see is River have will on impact is into y way will it are Throughout Tidewater new the is Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 region Road’s the that of amount approximately approximately is is located Boulevard a is Chesapeake two two to to home home and Cavalier), stock. should area Elizabeth the bridge g new some tolled,and limited Boulevard the all point some at items these area. some has itself retail. and homes. the as well area study Site Analysis y Hampton The and fundamentals, fair a receive area area study study The The is It Chesapeake. Dominion the along Swamp. Dismal of City The is is business.It It business. and (Greenbrier housing nicest and study Dominion The over bridge new The Bridge. g Steel theregionare have should toll construction. new for Dominion addition, In y highway g divided that speculation of All highway. the of de • • • • • • 6

pp , g , recreational the residents community to close to need area study difficult area, this development g Dominion Residential Key Strengths, Challenges, and Opportunities schools schools the figure to to if associated a a master-planned already in renters recovery, location y home—the home new for selling Will the be would communities/neighborhoods, and for and buy buy to to demand attractive be selling is water-oriented. projects development, and starting strong Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Swamp place place regarded housing would actively region, the is region residential master-planned buyers of is market a be Dismal well-regarded well strong to School High an in sales the in the housing employment residential range would Great a a is is leading Grassfield Landing, strongest housing amenitize to executive for associated multifamily multiple wide a to residential residential, RESIDENTIAL Strengths to Close opportunities Chesapeake Chesapeake good, are New Culpepper the with area study Challenges g High-end how out compete Without build Opportunities pp Create appealing for-sale The for zoned • • • • • • • • 7

region some not rail the in users general latest area—may future the in for does have not available larger the the for direction decrease areas water, the does land serve meet and etc. the in opportunities this to other as on and accommodate could new , facility pp in not I-95) industrial clearance, new training move projected is of to able area be a to is well-positioned along parcels be this would height g has for starting development—it (e.g. to in region g building College them , employment as cities large land buildings with already not of enough the g is is major lot a development of industrial industrial Community work airport Industrial-related area industrial other not are needs the in to possible INDUSTRIAL Strengths to Close Development Challenges g study The of types to lead access Opportunities There market—have Industrial industrial of All standards Tidewater be businesses , • • C • • pp • • • • g Dominion Commercial Key Strengths, Challenges, and Opportunities future shopping for need could for for point point good a created will employment use land creating \"next\" and area help therefore, limiting that be is bridge to access the standards new a should y community focal focal housing new an direction “leader” key for be create and area, configurations a a stable—could as of office creating this a be image to design will industry households, and regional Greenbrier center\" and and and short-term opening and future for in succeed in move not catalyst access—a the on work opportunity today's widened, care health Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 future the at met \"town community community strong the Boulevard desirable interest it help to starting struggling—will significant interstate to the with be road and the for mid-term, be in of of relatively in more will still of need out, can it location it and will retail centers sense sense is demand in Dominion area Chesapeake's area already is without off cores—will builds completed long-term, market good support near- residents of retail a a market be of study of study the is market area far Greenbrier—although is to office a be to g the of types new create create development retail will that Widening the City in Development g office study Somewhat employment Greenbrier guidelines bridge development mid- the the RETAIL Strengths Will • retail Challenges C For • needs certain Opportunities Create • help help The • use OFFICE Strengths g • make The • center • Challenges The • the in • Opportunities As • Once • for In • bolster 8

2025-2035 1,535 174 1,709 159,071 22,054 14,137 195,262 2025-2035 1,871 579 2,450 214,722 482,966 28,273 273 28 725,961 2014-2024 1,918 233 2,151 200,279 43,621 57,430 301,329 2014-2024 2,278 448 2,726 240,319 233,693 859 114,859 114 588,871 Summary of Demand, Both Scenarios, 2014-2035 Scenario of Demand Limited Employment Center Scenario Summary of Demand Employment Center Scenario Center SF Summary For-Sale Residential For-Rent Residential Total Residential Retail SF Office SF Industrial SF Total SF Commercial Employment For-Sale Residential For-Rent Residential Total Residential Retail SF Office SF Industrial SF Industrial Total SF Commercial the retail, each a use a either in study of the We retail the those of of VI-10. Employment Employment of land as growth owners in retail. of in projected capture each residential, to completed behaved be to or the scenarios of feet retail of for VI-6 Limited “Limited capture further captured is household likely renters within two household feet square for upon conversion the and analysis for-rent Exhibits a a current We that it upon households those then and the Each square estimated opportunity based the scenarios. demand statistical residential, in provided are completed completed we we upon based was area. study Scenario” Center perform would area center. employment based are models new of in interest the Chesapeake, upon based is area. study the 85 approximately the by long-term the are demands region, the office/industrial, of feet both under area Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982. Demand Analysis y a completed RCLCO for-sale including uses They industrial. and uses, uses, land land the the of of each each which Scenario” Center the in or near uses Employment “Regional the how upon regionally-significant demand residential percent the region, the and owners, or renters of City the within locating model demand retail within growth household supports region overall households new the mult based office, study area. land land they The The The For For the in • • • • • 9

throughout locally be amount amount the the well as Employment Est. Acres Acres 2,150 38 2,188 72.7 72.7 16.4 23.0 112.0 2,300 Limited Employment Center Scenario spread would upon upon development, the Est. Density Density 4 20 0.25 0.25 0.35 0.20 Total be office based based to development. % of Total Total would The vary vary in Compared 92% 8% 100% 64% 64% 20% 16% 100% uses core. will will interest of scale Out Build-Out 8,600 750 9,350 3,159 0.34 land a in and and owners infrastructure. different Build 791,351 791,351 250,000 200,000 1,241,351 commercial concentrated estimates, estimates, are are land acreage, of a gives Est. Acres Acres 863 20 884 33.0 33.0 4.3 8.2 45.5 929 py the scenario, not and projections projections availability it Scenario, Est. Density Density 4 20 0.25 0.25 0.35 0.20 Total this area, serving. These These developable the Center % of Total Total In the of as 89% 11% 100% 72% 72% 13% 14% 100% Total (to 2035) 2035) 3,453 407 3,860 1,204 0.31 an grow, is study the this the for (to 359,350 359,350 65,675 71,566 496,591 create one first the industrial industrial of both In without Overall Land Use Programs – to regions The in and and Under strong. opportunity 2025-2035 2035 1,535 174 1,709 159,071 159,071 22,054 14,137 195,262 470 0.28 potential how of center office office is addition, the 2025 g the Dominion. employment of of amount amount significant. housing In core, 2024 1,918 233 2,151 43,621 57,430 734 0.34 market, understanding for limited limited regionally for-sale dense. 2014-2024 2014 200,279 200,279 301,329 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 the our programs limited a a for less employment of Dominion, use a of support support be not slightly limited. analysis at land creation would would would opportunity is major a somewhat Limited Employment Center Scenario our core two the area area but the housing of Dominion Study Area; 2014-2035 Limited Employment Center upon together upon The The development, is For-Sale Residential For-Rent Residential Total Residential SF Total SF Commercial Estimated Employees Jobs to Households Source: RCLCO Based employment put we based area. area. scenarios, scenario, development apartments Scenario Retail SF Retail Office SF Industrial SF 10

land the amount well Limited Center, Est. Est Acres 1,800 120 1,920 93.3 93.3 143.5 143.5 380.2 2,300 Regional Employment Center Scenario office Determining Neighborhood the as development. Greenbrier. Greenbrier. and upon development, the to of Town to to Est. Est Density 5 25 0.25 0.25 0.40 0.20 Total industrial core. success. based in Compared scale Beach similar similar %of % of Total 75% 25% 100% 21% 21% 52% 26% 100% commercial employment its for area. study vary will interest different a Virginia the more more be be Build-Out 9,000 3,000 12,000 14,757 1.23 the the important the and owners infrastructure. gives it to would would 1,015,637 1,015,637 2,500,000 1,250,000 4,765,637 of in very throughout estimates, land similarly uses uses majority concentrated be of Scenario, sized land ofland Est. Est Acres 830 41 871 41.8 41.8 41.1 16.4 99.3 970 y will are acreage, of the core spread Center be Est. scenario, would of would developable Exhibit p be this be projections availability would breakdown breakdown V-15. Est Density 5 25 0.25 0.25 0.40 0.20 Total this location These the Employment one its its %of % of Total In uses retail of as This but but See 80% 20% 100% 35% 35% 55% 11% 100% Total Total g of of to to be to to (to 2035) 4,148 1,027 5,176 455,041 455,041 716,659 143,133 1,314,832 4,164 0.80 major cores Area regional The a Study of backing backing amenities, critical possible. area likely closest closest became employment center the the strong be will the would area, area, 2025-2035 1,871 579 2,450 214,722 214,722 482,966 28,273 725,961 2,466 1.01 Overall Land Use Programs – it Dominion place, place, It as seed if the as to center study study develop as land The the the 2,278 448 2,726 1,699 0.62 g of The employment in in well uses. interstates how would analysis report. an infrastructure infrastructure of the to consider center. of of 2014-2024 240,319 240,319 233,693 114,859 588,871 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 area Our this of become community, range close to portion portion the region. 14 to have have wide as need northern northern access. how the Page to to need need development a and core may employment depicts in center on starts opportunity will will It It housing, employment Chesapeake major the the on on transportation Regional Employment Center Scenario Dominion Study Area; 2014-2035 Employment Center Scenario scenario employment region the have significance. significance. economic the of a concentrated concentrated For-Sale Residential For-Rent Residential Total Residential SF Industrial SF Total SF Commercial Estimated Employees Jobs to Households Source: RCLCO This the in does the executive have City become existing Retail SF Retail Office SF 11

core It more This area, sure schools, the possible. with interstate interstate employment commercial employment employment. make center. for as highway. an an study the to as important area Boulevard, access becomes becomes the within as well the near serving such population be study as throughout communities neighborhoods/communities. services new will the Dominion limited uses located regional it of a Boulevard Boulevard land housing be sprinkled of the to large Scenario, part to access becomes the of range would be amount points additional a Map of Study Area with Potential Land Use Locations Center northern the easy it if Dominion Dominion if if mixing wide housing can centers large a focal as multiple to itself have to accommodate Employment to close have to interchange, more more is is recommend a include densest town have not serve would walkable. lends important to etc. fire, the as be needs one scenario scenario highway. would to The uses. core. core. Additional would They are land be will police, In to also than We core but they The It • • • • • Employ- ment Center Center Lower Density Housing with Office Neighborhood Retail and Office and Retail Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Higher Density Housing with transitional uses yst y Neighborhood Catalyst Cata Industrial Sites p 12

Employment Cores Analysis 13 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

below (pink average High g 20 maps wealth on Key: Per Capita Income (PCI) g Avg 10 10 The of areas concentrate; exception. few Low no a jobs, is shows office region map Hampton Roads Roads the region, particularly density. job Hampton Roads jobs, greatest the paying of and Hampton best the areas regions, the where the Cores, most For typically in areas. Metro growth metropolitan is quarter be to regional deemed of around favored The has San Diego characteristic defining capita) (per areas. RCLCO what in Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Favored Quarter Q a is quarter income of distribution the water-oriented near primarily locate jobs these of Atlanta, San Diego, and Virginia Beach Metropolitan Areas favored 40% Per Capita Income Atlanta Source: Esri 14 color), shows about The

major in Beach, employment along concentrated Virginia dense concentrated is density towards These this east, quarters. is of the to employment Much directly favored Cores. Cores. Metro Metro of routes. and Norfolk region’s the region’s s region Industrial & Office Buildings MAP KEY Industrial Buildings majority transportation of one the the are are Hampton Roads Region Office Buildings Source: CoStar CSt The downtown within areas areas S Favored Quarter in Hampton Roads one to other would unique the the quarters: the it region, the to bridges, bridges, South South Side Favored Quarter favored Beach the of however, the 20 20 p and due multiple multiple water. distinct Virginia size and and rivers, rivers, following 10 10 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 two in the growth, has water Given of ocean, ocean, directions, region the Peninsula. direction the the with with multiple High Q towards one Roads the have region region in grown Key: Per Capita Income (PCI) Hampton southeast into north only the the of of has Per Capita Income Hampton Roads Region Avg Source: Esri The the to the typically nature nature region Peninsula Favored Quarter Low 15

First Norfolk to the of the the the growth. adjacent into into recently, of downtown completion development development most generations in evolved The 64. Finally, three concentrated cores Interstate additional additional I-264. created. represent was generation drove drove along east was Gen 3 rd 1980+ cores development Second especially Beltway Beltway further Center employment office Portsmouth. routes, Roads Roads and area Town Beach Existing generation and transportation Hampton Hampton Greenbrier Virginia ports, page. we significant Office Office typically and have and Office Growth in Hampton Roads the next analysis, bridges housing, east uses, the Core, had and jobs, of the to Gen industrial on they Lynnhaven/Oceana. Lynnhaven/Oceana. location executive cores 2 nd 1950-1980 p depicted Metro unless paying office by is center, at at high as such as well of Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 dominated development installations as as such such represents Factors as growth is employment force, the region Industrial the military development, development, region development. labor perpetuated Roads of the off the in the to Office Building Development Time Sequence Hampton military. the purpose the include not spin-off spin development density proximity and The and For did civilian civilian higher rivers, influenced southeast. Hampton Roads Region Gen 1 st Pre-1950 Source: CoStar 16

the regions, at 2000s, have the many region During Unlike Roads development. significant. more Hampton the industrial became in cores development. Gen 3 rd 1980+ of Park employment amount Industrial the industrial significant Cavalier of most some least Industrial Growth in Hampton Roads in in the River. the the and a office ports to 1980s saw than the 1970s Elizabeth around around the area direction to the continued continued During Greenbrier Gen 1950-1980 p along the different concentrated 1950s along Beltway. the 2 nd Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 a was the southwest development development and in during Roads area grown industrial the has the grew to and industrial industrial Hampton the Lynnhaven/Oceana development Originally, rapidly and Norfolk, of 1970s, 1970s, of portion Industrial Building Development Time Sequence Industrial region. the region, the northeast the the During During southern the 1990s, Hampton Roads Region Gen 1 st Pre-1950 Source: CoStar 17

2040, TPO. 0.6% period the the the to the of time for for in Employment Growth in Virginia Beach-Norfolk-Newport News MSA 2010 to similar rate the projections projections conservative considering 0.5%, annual of end the year year when of rate average an at result over over year year somewhat However, annual projects overall Moody’s s stay Hampton Roads TPO Forecast* p Moody to 2005. average TPO the Since the the models to an Roads utilized utilized 1990 projecting 2040. we we demand from are Hampton to 2009 similar, similar, PROJECTED 1.53% they The from was was statistical modeling. to a have a a annual of Moody's Economy.com Economy.com Organization project they projects projects s average average *Hampton Roads TPO projections from 2009 to 2040 recalibrated to the 2013 MSA employment numbers without military or federal workers g forecasts however, Moody’s Moody (an historical Moody’s Planning downturn, decades. decades. growth the of Transportation employment few few slow by below far Moody's Economy.com Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 projections national recent the next next the the followed 2040), Historical and Forecasted Employment, Excluding Military the Roads and local from over over rates rates recovery, to 2015 Source: BLS; RCLCO; Hampton Roads TPO; Moody’s py compared Hampton Both recovery growth growth short-term from 0.3% Virginia Beach MSA RCLCO local the (TPO). continued different different strong of rate 900,000 850,000 800,000 750,000 700,000 650,000 , 600,000 550,000 500,000 000 500 18

non- region’s This employment 900 2,900 2 760,300 the jobs. new economy. economy. 2,700 700 Minneapolis-St. Paul VA Beach MSA 2035 currently 2035, By non-military two to region’s s region 2 500 2,500 Houston Tampa-St. Pete are cores. 835,000 one the the to to 2 there to decades, important important 300 2,300 2 region, employment increase to two as as 2,100 100 Raleigh-Durham Central FL 2009 VA Beach MSA 2013 Roads nine forecasted next the emerge emerge to to 2 1,900 900 Detroit Hampton and jobs is over that likely likely are are 1 700 the military employment indicates centers centers 1,700 1 Employment (1,000's) In Seattle-Tacoma 2012 500 1,500 1 Chattanooga of exists centers of 300 Cincinatti Phoenix blocks RCLCO job planning planning location 1,300 1 Metro Cores in Hampton Roads building areas. correlation a of range range Long Long the 1,100 100 1 the metropolitan that number anticipate efforts. 900 900 San Diego 2008 p are found the and activity. activity. to Philadelphia Atlanta Charleston Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 centers”, in patterns has U.S. employment economic economic need activities planning Number of Employment Cores and Total MSA Employment 700 700 “employment growth the across total this this accommodate accommodate development maximize to 500 500 or drive regions region’s order in 300 300 Denver Nashville Salt Lake City Sarasota Cores, and in a to to economic centers Select MSAs 100 100 Source: RCLCO Metro regions research between necessary necessary and future 20 19 18 17 16 15 14 14 13 12 11 10 9 8 7 loyment Cores 6 5 4 3 2 1 0 Number of Emp 19

the on Coliseum cores and , the HAMPTON ROADS CORES include Avenue Downtown Norfolk Lynnhaven/Oceana Village Ave, Port Areas, , Greenbrier, Virginia Beach not g Cavalier Town Center did Point/Jefferson None None analysis The Oyster y although history. are j core area’s which closer-in the Peninsula p the and Central. at y established of characteristics six of out within positioning markets, DESCRIPTION Cultural, financial, and often governmental centers of their respective regions. •Typically has the largest concentration of high-density office space and the majority of the g Locations are decided by individual actors (e.g. governments, corporations, universities, etc.) and have the ability to change growth patterns in a region, because of their size. Tend to emerge where land is cheap similar four has geographic industrial/retail/office mass critical Metro Core Definitions share region g warehousing/distribution or manufacturing. along the region’s principle interstate. a after Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 that Roads by their region’s highest paying jobs. begin cores determined of y to development. job Hampton are make-up yp Tends core. of and • • • • • • • • • types The They six regions. types. depth Core are core region, CORE TYPE Urban Centers Catalytic Core Industrial Core strial Favored Quarter Office Core Historic Satellite Retail Cores There across these the Ind Cities 20

locations is core each current contained employment about the of is region major information 30% Roads of location Detailed Approximately Hampton the as Station. V-15. the such Air in cores. cores. catalysts Naval Exhibit base seven seven other Oceana in employment these these and like located within within established purpose the cores primarily is topography topography map, a on For employment cores unique unique other nine each has emerging. seven these of the the routes, routes, to next Metro Core Definitions region additional the on each of seemingly Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Roads one concentrated location transportation transportation areas Hampton with cores, only we distinct The major major to to divides MAP KEY Virginia Beach Town Center the analysis, Southside. access access by by that region Map of Employment Cores Hampton Roads Region Industrial building Office building ildi b Retail building Study Area Harborview Norfolk Ind. Park Area Cavalier Port Area Greenbrier Lynnhaven/Oceana Downtown Norfolk Source: RCLCO; CoStar; Esri Today, employment this of the in driven driven the of Offi 21

than by attract ill will to growth Roads existing of and in our our our potential Study region: more development jobs to bt but sufficient transportation g, growth determine determine upon upon as a have 6,000 likely years, job capture. Hampton as concentrations existing, that to nor well Dominion within and shape least 20 20 t 2035. likely projected reasons already y analysis locate, based based as identified Cores. growth and at have regions or thenext th in are current the in major new accommodate However, growth have The Metro drive influential evolve to areas in i th jobs cores region’s their similar include of jobs j to detailed would However we cores. future that already projected are growth t new new the with cores for emergence y to the cores be. be Core region, types are will cores loyment 6,000 likely of line in of evolve catalysts proximity p parcels catalysts. complete job would would Metro employment these of core cores today. cores are new empl than less and 30% ratio generation likely the g, large new the of future one three jobs and t have cores 2035—a These housing, of these to not did likely they they with for be are Existing 6,000 Emerging patterns 2030. Potential ignificant ifi still accommodate next will improvements, the large large experience understanding could There • • • si Emerging through The region cores. executive availability proximity RCLCO where how how locations Area Location of Potential Future Metro Cores MAP KEY Emerging Existing Existing Potential New Core Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Hampton Roads Region Positioning of Existing and Emerging Economic Cores by Type Source: RCLCO 22

on life the t focus employment, marketing of for should of and quality training 4Employment l cores emerge area types timeframe. timeframe. recruiting high a provide 4. E Study different strategic and to Dominion for development development and system, System the criteria year education Development Plan, location with20-year 20 with intentional an ll f Comprehensive typical on associated associated implement excellent types, Workforce 3Companies follow i household growth the based jobs jobs and households. housing Virginia’s 3. C to other other formulate follow and changes generate and and to generally issues. of variety TCC with considering or construction construction sewer a i y center: businesses attract and and Development cores with p Dominion Study Area Employment Center Action Plan can particular want catalysts—work 2Locally-serving jobs, retail and employment based area resources, Economic employment ll improvements an as utilities home study the ofnaturalresources, natural of center. holistically: infrastructure—in employers available Dominion 2. L Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 transportation its housing infrastructure effort jobs of uses, uses, employment phasing physical synergies to want y desirability and accommodating that of use use Department employees with in create major influence quality marketing and types civic civic of of Chesapeake Dominion’s and timing necessary high-skilled of advantage you jobs Typical Trajectory of Employment Cores 1. Household Household growth and finishing will that High Amenities Amenities Community broad A Encouraging the Identify development development with Work for Evaluate Develop the Attract environment. Take of types migration Source: RCLCO While factors • • • • • 1. 2. plan 3. 4. 5. 6. 1. 23

Economics and Demographics 24 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

more the of of all and and the progressively in developing 2022 cycle, beginning activity development, development, be RC = Replacement Cost 2021 the making the estate will into at real Boulevard Boulevard area P = Price P=Price 2020 further developers would of nature study 2019 The with they than Dominion Dominion The cycles. P P P < RC Acquire Bottom change. becomes, changing the the to to monitored. estate 2018 will assumptions and critical critical real P > GAV Sell Peak 2017 activity market timing the is is cycles cycles continually different 2016 estate the aggressive Both future future be to many real feverish more cycle. the the needs over 2015 2014 sales RCLCO on the of a a with with after peak, 2013 home based nature 2017 2017 occur next as Recession. predicted probably the to 2012 National Real Estate Cycle stage, cyclical around around up y Great has the will lead 2011 upturn and and begin begin the the the should should downturn In RC 2010 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 in from cycles cycles This 2018. P< RC P < Acquire Bottom currently rebound economic past downturn downturn two. in P P 2009 is to of history next next or year bottoming RCLCO Real Estate Market Cycle Outlook 2008 economy continue the the the the a of elections, P > GAV Sell Sll Peak 2007 national prices monitors into that that error of 2016 2006 Source: RCLCO The and closely research economy economy margin the 25

new account the in with 4,000 downs in-line to into are slow take and will not ups be projections growth do to TPO optimistic. the projections likely are Military Employment Growth 2030, there Roads more and long-term but Hampton slightly 2020 recessions, the but between Their annually. years. earlier, projections, However, jobs future major 20 next stated As Moody’s PROJECTED Hampton Roads Employment Growth was dropped, the of better to Moody’s annually. Total Employment Growth Excluding Military region Most see projected 2020, jobs y p Roads Employment rose. should is and 5,900 y years region 2010 Hampton vacancies the of g p Recession. few classes. classes. for Between average y Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 the commercial next estate estate outlook an NOTE: This Data does not include military or government employment States, Great the and the and real real years. ten add Virginia Beach-Norfolk-Newport News, VA-NC MSA; 1990-2040 Office Employment Growth United by recovery, the the of of demographic next will MSA the impacted plummeted, most most and the for the Annual Employment Growth Source: Moody’s Economy.com of in in in p are that most significantly sales performance performance economic moderate 000 0 000 000 Like home sectors The be projects 20,000 15,000 15 10,000 5,000 5,000 -5 -10,000 -15,000 -20,000 25,000 -25 26

are and is and and years. Government employment Government recession 10 next Other Services of decades. the the for level during pace Leisure and Hospitality same two next increased slower the the a at Health Services to in grow Professional Education and close jobs employment to and Business Services 00 maintained gain to continue to 2031-2040 03 sectors projected service-oriented expected Financial Activities 030 2021-2030 0 Hampton Roads Employment by Sector Information 00 significant financial y military, 2011-2020 0 a include and Trade, Transportation & Utilities 00 lost trade/transportation/utilities. 2001-2010 00 region which y information Manufacturing p in Roads sectors, and those Construction Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Hampton including Historical and Projected Employment Change by Sector Virginia Beach-Norfolk-Newport News, VA-NC MSA; 2001-2040 the employment manufacturing Natl. Resources and Mining recession, core occupations, Source: Moody’s Economy.com p its Military the of construction, During portion Professional 25,000 20,000 15,000 10,000 5,000 0 -5,000 -10,000 -15,000 000 15 -20,000 27

future an upon 2040 2039 anticipate based projections. TPO’s Projected 2009 to 2040 Avg. Annual Growth = 4,800 2038 2037 2036 would year per of 2035 2034 2033 We sources 2032 2031 year. households three 2030 2029 per the 2028 2027 households 4,500-5,000 and growth 2026 2025 2024 4,600 between historical Moody’s Projected 2013 to 2035 Avg. Annual Growth = 4,700 2023 2022 2021 2020 approximately be to growth of analysis PROJECTED 2019 2018 2017 2016 2015 8,000 short-term 2018) per was was 2000-2013 Avg. Annual Growth =4,600 2014 2013 2012 2011 and and households 2013 2013 1990-2040 2010 2009 2008 3,000 Moody's 2013 4,000 and and 2000 2000 MSA; 2007 2006 2005 between MSA. the between (approximately between between VA-NC 2004 2003 2002 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Household Growth grow in annually News 2001 2000 1999 to 2030 (6,700 growth growth Virginia Beach-Norfolk-Newport News, VA-NC MSA; 1990-2040 1998 1997 projected through projections projections annual annual Beach-Norfolk-Newport 1996 1995 1994 Source: Moody’s Economy.com, Hampton Roads TPO are year per household Esri's than average average 1993 1992 1991 Households households future higher are The The year). year). Household Growth Virginia 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1990 28

Median Income by Census Tracts $75,001 or greater $60,001 - $75,000 $60 000 $45 001 - $60,000 $45,001 $30,001 - $45,000 $30,000 or less 2,999 2010 1,881 -1,880 201 Median Income by Census Tract Suffolk, Chesapeake, Portsmouth VA; 2013 Change in Age of Householder Chesapeake City, VA; 2013-2018 1,268 -179 201 4.0% Over $200,000 is someone (2,550 from future are are an have area tracts 69% 6.9% $150,000 - $199,999 by growth come to for households households subject census Chesapeake Demographics headed demand households the 20.1% $100,000 - $149,999 p are household projected strong Younger Younger all of surrounding 15.4% $75,000 - $99,999 City is a period. surrounding g total 2018 renter. renter. 31% as the of Ranges Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Chesapeake of 87% to 2013 suggests or or buyer buyer time same high, income income 18.3% $50,000 - $74,999 Income Ranges Income in and from This older. older older the in is city the Median median 13.0% $35,000 - $49,999 households 45 of year) and an an grow in $100,000. the $75,000. $75,000. 9.1% $25,000 - $34,999 p per 55 to income Household Income Distribution Chesapeake City, VA; 2013 of age targeting targeting over with 63% 6.3% $15,000 - $24,999 60% the households households projected Household high, above above Over over housing housing also income also being being 70% 7.0% Less Than $15,000 Source: Esri 29

TOTAL MIGRATION % OF IN-MIGRATION IN 66% 34% 100% % OF TOTAL OUT- OUT- MIGRATION 63% 37% 100% % OF DOMESTIC IN-MIGRATION 66.0% 3.7% 2.8% 1.3% 1.3% 1.3% 1.3% DOMESTIC MIGRANTS IN-MIGRANTS IN 5,519 2,847 8,366 DOMESTIC DOMESTIC OUT-MIGRANTS 4,887 2,887 7,774 ORIGIN TOP STATES OF ORIGIN OF STATES DOMESTIC IN-MIGRANTS 5,519 307 238 112 112 110 107 8,366 Domestic Population Migration Chesapeake City, VA; 2009-2010 DISTRIBUTION IN-MIGRATION DISTRIBUTION MIGRATION Same State In-Migration Different State In-Migration TOTAL DOMESTIC IN-MIGRATION OUT-MIGRATION DISTRIBUTION Same State Out-Migration Different State Out-Migration TOTAL DOMESTIC IN-MIGRATION TOP AREA Virginia North Carolina Florida Maryland Maryland California New York TOTAL Source: Internal Revenue Service; Forbes.com same-state of 5,500 of Virginia, is city the biggest biggest IN are 10%) to move and Approximately from are suggest next next The The than less city the in-migration data. City This area. region. region the the of total a from same-state migration Chesapeake to Roads within within moving moving for accounting Maryland. out-migrants 8,000 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 strong has IRS upon in-migrants Hampton the people people for for (although and Florida, the of Virginia. within Source: Internal Revenue Service; Forbes.com Migration g City Chesapeake based out-migration domestic 8,300 from are 60% which choice choice popular popular markets source Carolina, North 5,000 Approximately location another Domestic Migration Patterns Chesapeake City, VA; 2009-2010 Blue = more in-migrants Red = more out-migrants the a a 30

Office and Industrial Market 31 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

MAP KEY >110 109 75 - 74 50 - 49 25 - <25 MAP KEY > 350 349 250 - 249 150 - 149 50 - <50 Information-Related Employment by Census Tract by Census Tract Professional and Tech-Related Employment the the is in to largest employment MAP KEY 3,999 3,000 - 2,999 2,000 - 1,999 1,000 - concentrated Lynnhaven/Oceana centers. second Information-related Lynnhaven/Oceana, >4,000 <1,000 Location of Jobs in the Region g is employment the is jobs. and Tech-related areas. positive. employment and East, strong support 50,000 Greenbrier located. port the to is area Boulevard, the to contains services technical nearly in clustered is space addition in study the to Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Dominion Greenbrier also Norfolk and supporting office areas, close Suffolk, Chesapeake, and Portsmouth, VA; 2013 to west, the scientific, MSA, predominantly desirable these in employment Total Employment Density by Census Tract closest to Downtown the is most of area area Professional, in the concentrated amount the Cavalier Northeast. sector employment where Source: Esri In also The 32

Absorption: 450,000 2006-2013 Avg. Completion: 900,000 2013 2012 2011 QUOTED 4Q 2013 UNDER RATES CONST. SF $15.31 2,884 1% $16.52 375,277 Virginia Beach-Norfolk-Newport News MSA; 2006-2013 2006-2013 Avg. 2010 2009 Completions 2013 DELIVERIES 2,884 1% 390,173 Office Absorptions and Completions 2008 Net Absorption 2007 2013 NET ABSORPTION 8,066 1% 748,934 2006 2,000,000 1,500,000 1,000,000 500,000 000 500 - (500,000) (1,000,000) Source: CoStar VAC % 8.2% 11.8% to From the activity was be VACANCY TOTAL SF 48,555 1% 5,708,956 begun 2011. half highest highest the the to completions, recently through only was Construction of of 10% 10% absorption appears DIRECT SF 51,582 1% 5,641,925 only than than Net market absorption, has 2008 absorption MSA. (less (less downturn). The both TOTAL RBA 592,515 1% 48,411,521 Overall Office Market MSA from office the in 2012 2012 2011. in EXISTING INVENTORY Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Beach contraction annual in in the in uptick 2013. # BLDS 104 3% 3,287 VA delivered feet feet before feet promising in Southern Chesapeake Submarket and MSA; 2013 the average square square levels square growth in dramatic space a rent market a the 2013, office 150,000 150,000 completion -500,000 showing and Performance As a Percentage of Total office from to of to to to improving, occupancy, Office Performance Submarket Market Total Market Source: CoStar The recover 2006 volume dipped dipped annual close Office 33

Southern Chesapeake Submarket Study Area Map of Study Area and Southern Chesapeake Submarket Southern Chesapeake Submarket Office Market Source: Reis Map of Office Buildings Suffolk, Chesapeake, Portsmouth VA; 2013 Source: CoStar office submarket added the in at at remained remained of 1.2% 1.3% 1.2% 1.1% 1.0% Chesapeake this in submarket space building has has encompasses 2013 2012 Southern developments The offices. rentable inventory inventory The The submarket 2011 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 p the office of feet 2010. 2010. The 2010 2009 Submarket RBA as % of MSA RBA located major medical square to to 2010. Southern Chesapeake Submarket and MSA; 2006-2013 Submarket Total RBA few 2006 2006 2008 is since inventory. 2007 Boulevard are There small-scale 100,000 from from period period feet square total 2006 Dominion submarket. than larger approximately year year four four 590,000 MSA’s the Office Inventory 600,000 580,000 560,000 540,000 520,000 500,000 480,000 460,000 Source: CoStar 34

dropping in $16.50 pre-recession 25% 20% 15% 10% 5% 0% 15%, rents, 2013 nearly asking below 2012 to still 2011 MSA Avg. Rent MSA Vacancy 2010 Average are to 2010 2006 11%. submarket, 2009 from to years the Southern Chesapeake Submarket and MSA; 2006-2013 Submarket Avg. Rent rose two in 2008 Submarket Vacancy Southern Chesapeake Submarket Office Market MSA past $15.30 Office Asking Rent and Vacancy 2007 the and in the in 2006 Source: CoStar Vacancy slightly MSA the levels. $20 $18 $16 $14 $14 $12 $10 $8 $6 $4 $2 $0 Submarket net a absorbed the in vacancy 9%. approximately 25% 20% 15% 10% 5% 0% 2013 Vac % Chesapeake and space office years, of 2012 2011 Southern office two average 2010 RBA Delivered Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 p new last long-term 2009 the of the In 2013, feet feet. the to Southern Chesapeake Submarket 2006-2013 2008 and square square stabilized Office Absorption vs. Completions 2007 Net Absorption 2006 100,000 60,000 2006 Between delivered of total submarket 80,000 60,000 40,000 20,000 0 (20,000) (40,000) (60,000) ) ( (80,000) Source: CoStar 35

12% 10% 8% 8% 6% 4% 2% 0% nearly 2009. Rents in 2013 to high absorption. 2013. recover the in 2012 MSA Vacancy to from drop negative $4.60 to 2011 vacancy to net down Virginia Beach-Norfolk-Newport News MSA; 2006-2013 2010 2009 and continued experienced 2010 in 2008 MSA Rent (NNN) rent has $4.90 Industrial Asking Rent and Vacancy 2007 allowing Vacancy MSA the from 2006 Source: CoStar years, levels. however, slightly $5.4 $5.2 $5.0 $4.8 $4.6 $4.4 $4.2 $4.0 two 2007/2008 2013, slipped the In have 2013 a and over 1,000,000 after market Absorption: -4,000 2012 2013 rents The space 2011 challenging industrial 90%. and industrial 2006-2013 Avg. 2006-2013 Avg. Completion: 2010 Overall Industrial Market a Average $4.50 of feet Completions had at 2009 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 market recession. 2010, in square 2008 Absorption industrial the bottom million a Virginia Beach-Norfolk-Newport News MSA; 2006-2013 2007 the from to over of Industrial Absorption vs. Completions level, appeared total 2006 MSA recovery a 0 the occupancy delivered 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 -500,000 -1,000,000 -1,500,000 Source: CoStar At brief 36

4.5% 4.0% 3.5% 3.0% 18% 16% 14% 12% 10% 8% 6% 4% 2% 2% 0% 2013 2013 2012 2012 2011 MSA Rent (NNN) MSA Vacancy Study Area; Deep Creek Submarket; 2005-2013 2010 2011 2009 Study Area as % of Submarket 2010 2008 Deep Creek Submarket 2009 2007 2008 2006 Industrial Asking Rent and Vacancy Deep Creek Submarket and MSA; 2006-2013 2007 Deep Creek Rent (NNN) Deep Creek Vacancy Industrial Inventory 2,000,000 1,950,000 1,900,000 1,850,000 1,800,000 1,750,000 1,700,000 1,650,000 2005 Source: CoStar $8 $7 $6 $5 $4 $3 $2 $1 $1 $0 2006 Source: CoStar Deep Creek Submarket Industrial Market 200,000 no seen study approximately 2014Q1. was to 2007 2006 from from from a commands 2013 added has but Boulevard decade. of and space of in 2% vacancy dropped dropped Absorption: -13,000 2012 map) 2008, past 2006 feet from 8% has has MSA MSA Submarket 2006-2013 Avg. Completion: 24,000 2011 for to Dominion the absorption between square climb to 39 in net to 6% the the in in Creek 2006-2013 Avg. 2010 Completions Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 page 2006 The space space 190,000 rate a rent rent Deep 2009 (see from space time. that industrial negative a industrial period, vacancy maintained asking asking 2013. MSA. 2008 Absorption Submarket industrial since added experienced of feet time the led has MSA industrial industrial in $4.61 the than Industrial Absorption vs. Completions 2007 Creek of inventory not has square same has This The Average Average to rent Deep Creek Submarket; 2006-2013 2006 p feet in submarket the 2013. 2006 higher Deep itself in 2013. 2013. in 000 50,000 0 Source: CoStar The square change area The -100,000 During delivered. 15% to to $5.28 slightly 200,000 150,000 100,000 100 -50,000 -100,000 , -150,000 -200,000 -250,000 37

Retail Market 38 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

Deep Creek Submarket Study Area Map of Virginia Beach-Norfolk-Newport News, VA-NC MSA Map of Deep Creek Retail Submarket and Study Area Source: Esri; CoStar 16% 14% 12% 10% 8% 6% 4% 2% 2% 0% the quick to 4% MSA’s MSA s during a and from inventory the the 2013 uses rents vacant mirrored mirrored 2012 land in recession, reduced MSA Rent (NNN) other decline the closely closely 2011 MSA Vacancy as during has has 2010 much sharp submarket 2013 2013 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 Overall Retail Market as a saw slightly The to to 2009 suffer rose 7%. 2008 2008 2008 not submarket MSA at from from did the flat and and Deep Creek Submarket and MSA; 2005-2013 2007 Deep Creek Rent (NNN) Deep Creek Vacancy market the in remained Retail Asking Rent and Vacancy 2006 retail whereas Vacancy has downturn, downturn vacancy. MSA recession, recovery. and the the of 2005 Source: Esri; CoStar The 7%, during during level $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 39

45% 40% 35% 30% 30% 25% 20% 15% 10% 5% 0% 2014 Absorptions: 38,000 2006-2013 Avg. Completions: 35,000 2013 2012 YTD 2006-2013 Avg. 2011 2010 Completions Vacancy % Southside and Deep Creek Submarket Retail Markets 2009 2008 Absorption Vacant SF Retail Absorption vs. Completions Deep Creek Submarket; 2006-2014 YTD 250,000 200,000 200,000 150,000 100,000 50,000 0 2007 2006 -50,000 Source: CoStar Retail Vacancy SF and Rate by Type Southside of Hampton-Roads; 2012 1,200,000 1,000,000 800,000 000 800 600,000 400,000 200,000 - Source: ODU CREED; CoStar Creek six delivering a Dominion Dominion for high footage. for occupied. occupied. Deep past the development, of of is accounting the in and portion portion vacancy square well well Community Center p 2007, change retail retail centers, very very are are 19% Power Center Strip Center Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 in 38,000SF future northern northern retail of 21% % activity little of the the Roads, 20% power footage, footage, 7% 24% retail total proposed at at comprise and square square in experienced a located located Hampton Southside of Hampton-Roads; March 2014 20% 9% uptick only is is of which centers retail totalretail SF of Current Retail Mix by Type General Retail Neighborhood Center Regional Mall brief has absorbing The Southside malls, total a center, center, Neighborhood of of third Source: CoStar Despite Submarket years, 35,000SF. power power Boulevard. the In regional one-third one 40

Undersupplied Balanced Oversupplied $250,000,000 $250,000,000 $150,000,000 $150,000,000 Map for Current Retail Supply 10-Mile Ring Around Study Area; 2014 $50,000,000 $50,000,000 ($50,000,000) ($50,000,000) 10-Mile Ring Around Subject Area Retail Market area, areas which outside are are an is It the of Dominion study retail area, from there there exists retail. outside the active The Although Although there care of side around many employees. spending area, personal spent are ($350,000,000)($250,000,000)($150,000,000) ($350,000,000)($250,000,000)($150,000,000) radius includes significant products. products. retail and beverage southern j 10-mile and and apparel apparel the of health and the in a residents captures and and half stores by sources, east as food Stores defined nearby store, electronics, electronics, and well as of sales grocery Nonstore Retailers Gasoline Stations Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 as demand for Target north Motor Vehicle & Parts Dealers Food & Beverage Stores Music & Miscellaneous Store Retailers General Merchandise Stores today, to benefit a and merchandise, the beverage annual large-scale Health & Personal Care Stores Book Food Services & Drinking Places Furniture & Home Furnishings Stores Clothing & Clothing Accessories Stores Electronics & Appliance Stores market amenity store stores and million of Current Retail Under and Over Supply 10-Mile Ring Around Study Area; March 2014 Hobby g relative merchandise, in in Sporting Goods, Hobby, Book & Music Stores Bldg Materials, Garden Equip. & Supply Stores retail balance high Wal-Mart general general food of $22 lack a Goods the in provide a for for grocery that to Source: Esri; CoStar Currently, mostly is that includes residents residents multiple undersupply estimated due area Boulevard. Sporting 41

largest retail average CENTER TYPE Regional Power Center Power Center Community Community Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood Town Center second newer rents VACANCY RATE (%) 1.5% 0.0% 0.0% 5.5% 8.8% 4.3% 8.0% 0.0% 19.0% 0.0% 7.9% 5.7% 6.1% 0.0% 00% 0.0% 7.9% 5.2% 10.0% 13.0% 5.4% the relatively tenant $10. is ANCHOR TENANT $5.45 $8.12 $11.39 $5.84 $12.69 $9.16 $17.00 $7.78 78 $11.99 $9.92 $9.93 retail non-anchor average n/a n/a n/a n/a n/a n/a n/a $7 n/a n/a of well-performing, rents 86 feet area, NON- ANCHOR TENANT n/a n/a n/a $14.00 $15.91 $15.00 $13.92 $12.07 $12.00 $9.95 $16.40 $16.88 $12.92 $17.00 $14.86 $14 $20.84 $15.91 $13.00 n/a $14.71 square Among study tenant YEAR BUILT 1981 1988 1996 1987 1986 1986 1985 1984 1983 1989 1987 1986 1986 1984 1989 1989 1992 1989 1986 2007 1988 500,000 area. the anchor and SIZE (SF) 898,416 153,111 493,657 287,679 139,623 66,659 80,831 16,000 19,500 15,000 35,659 23,967 68,822 21,633 120 74,120 97,000 88,728 16,969 78,072 2,675,446 comprising the in building surrounding $15 74 center retail buildings approximately CROSSWAYS CENTER CHESAPEAKE CROSSING SC WOODFORD SQUARE GLENWOOD SQUARE PARKVIEW/Greenbrier ISLAND WHARF SHOPPES CEDAR LAKES CENTER BATTLEFIELD SHOPPES LAS GAVIOTAS SHOPPING GREENBRIER STATION THE CROSSING/DEEP GREENBRIER SOUTH center inventory. highly feet a a of of power MAP PROPERTY NAME GREENBRIER MALL GREENBRIER MARKETCENTER MARKETCENTER DEEP CREEK PLAZA LIBERTY PLAZA CNTR CREEK ORCHARD SQUARE MILLWOOD PLAZA TOWNE PLACE AT GREENBRIER Total Average restaurant new area million Center, Retail Competitive Landscape p is square example example a KEY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15 16 17 18 19 and significant Greenbrier 1 to one one is is Market shopping the close 1.5%, 1.5%, of of Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 lifestyle lacking in with 1981 rate rate Greenbrier a despite development in vacancy vacancy area. provides built the p Mall, low low in y area occupied residential Greenbrier very very a a amenity Greenbrier well is Accordingly, and and retail Select Retail Comparables Chesapeake, VA; February 2014 ; , Source: Google Earth; CoStar The that desired. retail retail of of strong p 42

For-Sale Residential 43 Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40

total sales indicate 40% 35% 30% 25% 20% 20% 15% 10% 5% 5% 0% of Both percentage 15%. and 2012 2012 % New a to market. 2010 as 34% from sales from increases housing 2008 New Sales home 2004 for-sale 2006 New since clear new 2013. show the 2004 Resales to declined price in 2002 2012 steadily recovery New and Resale Homes by Year Hampton Roads Areal 2000-2013 from median 2000 Source: Moody’s Analytics 14% has and and 35,000 000 30,000 25,000 20,000 15,000 10,000 5,000 0 and sales pace growth 30 , For-Sale Residential Market Trends the home only sales annual annual 2012 from and home to PROJECTED recover single-family 2012 total 17,500 17,500 2011 to in of from slow existing bottom volume averaging averaging 10% been a The 2011, 2011, nearly Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 has median hit 2013. rose market in market the in through through sales Virginia Beach-Norfolk-Newport News, VA-NC MSA; 1990-2020 housing rise rapid 2000s, gains 2008 2008 from from total Median Existing Single-Family Home Price Roads a After early meaningful stagnant stagnant of number Hampton the in see to The 000 $50,000 $50,000 $0 Source: Moody’s Analytics The recession. prices began remained remained sales. $300,000 $250,000 $200,000 $150,000 $150 $100,000 44

permits in 2013, this pre-recession 817 with 2013, in in Like large 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% single-family in realized However, 2012. of half 2010, in and levels. increasingly market. rentalmarket. rental % MF 3,200 were from almost lowest recovery, pre-recession an been the the of of of gains 16% the rapid strength strength MF Permits average Meaningful increased approximately was MSA a saw to close have the the Virginia Beach-Norfolk-Newport News, VA-NC MSA; 1990-2013 annual only the 2013 reached permits reflecting reflecting an MSA. permits is in multifamily Single-Family and Multifamily Permits SF Permits 2012, the level permitting through permits permits, permits, Source: HUD State of the Cities to in single-family 2011 total total 2008 issued post-recession Chesapeake, of of 0 From were which highs. highs. Multifamily issued. multifamily portion portion 12,000 10,000 8,000 6,000 4,000 2,000 For-Sale Residential Permitting Trends more for in in in in 2013, permits. 100% 90% 80% 70% 60% 60% 50% 40% 30% 20% 10% 10% 0% g sign single-family and issued issued historical exceeded issued In progressing good a 2012 in were were the even were recovery.In2013, recovery. total of 1987. since % MF is is which annual slightly permits permits below and permits strong strong 45% seen recovery MSA, average rising 36% still returned a a captured been MF Permits the the 2011, family single-family but have multifamily saw saw not Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40 that in Chesapeake, to 2008 single 2005 no through2013 2013 issued, has suggest than City In from 911 911 since 2007. Chesapeake Virtually through were permitting data 650 at 2013, 2013, In In highest to in levels. 2008 2008 but but permits multifamily Single-Family and Multifamily Permits SF Permits permit Chesapeake Boulevard. hovered 18%. 18%. the 1995 permits 2007, 2007, Chesapeake; 1990-2013 Source: HUD State of the Cities and in by by Chesapeake, from pre-recession and and multifamily of level Sales rapidly Dominion permits 2013 2013 average Multifamily 2006 2006 749 This 3,000 2,500 2,000 1,500 1,000 500 0 45