John Knibb of Divaris Real Estate represented Wal-Mart in 27 new sites, expansions and relocations including a Supercenter near Chesapeake Square Mall.

Virginia Continues to Attract Big Box Retailers

VIRGIINIA – Forget about the Big Bang Theory’s expansion of the universe.  There’s another phenomenon that keeps on permeating.  Big Boxes are moving into Virginia en masse, with the help of Divaris Real Estate Inc. (DRE).  From Wal-Mart to PETsMART, Best Buy to Ross, Kohl's to Lowe's, retailers are recognizing the Virginia market explosion.

“The retail market is very strong in Virginia.  We represent a number of retailers moving into this market,” said Mary McGovern, senior vice president of retail for DRE.  “Retailers are interested in entering the market and those that are already here continue to expand.”

Last year alone, several big boxes expanded in Hampton Roads.  For $12 million, Wal-Mart bought a 37.9-acre site assemblage at Tidewater Drive and Little Creek Road in Norfolk.  The new 210,000-square-foot supercenter will spur a renaissance of this former “Main and Main” location.  John Knibb, senior vice president of DRE, represented Wal-Mart in this transaction as well as 30 new sites, expansions and relocations for the world’s number one retailer. 

With the retail vacancy in Hampton Roads dropping to single digits, retailers are flocking to existing sites.  Gerald Divaris, CEO of DRE, handled a transaction for SuperValu, the nation’s largest food distributor to supermarkets and the 10^th largest retailer.  Closer to the shore in Virginia Beach, SuperValu leased 50,000 square feet in Haygood Shopping Center for a Farm Fresh prototype unit.

The Richmond retail market has been booming as well, with its overall vacancy rate declining to 6.5 percent.  So when an opportunity arose for Best Buy to build a 30,000-square-foot prototype store in the Virginia Center Commons area, they got the 'best buy' for it.  According to Debbie Wake, senior vice president of DRE’s Richmond office, it was what the biggest consumer electronics outlet had been waiting for. 

“We have been looking for the right site in the Virginia Center area for a long time.  Best Buy realized the potential this area offered and, demographically, it was their market,” said Wake.  “So, the company jumped at this great location.  It’s probably one of the last locations in the market, with great visibility and excellent positioning.”

            Among other retailers that set up shop in Richmond are Mark Gonsenhauser’s Rug and Carpet Superstore, leasing 10,000 square feet on West Broad Street; Dollar $mart, occupying 8,072 square feet in Chesterfield Crossing; and Bestway Rent-to-Own, securing 5,500 square feet in 360 West Shopping Center.  Brenda Martin, assistant vice president of Divaris’ Richmond office, was involved in the lease negotiations for these transactions.

Mark Gonsenhauser's Rug and Carpet Superstore leased 10,000 square feet on West Broad Street in Richmond.

     Other high growth trade areas exist in the western part of the state.  PETsMART, the nation’s leading supplier of pet products and services, recently joined Target and Harris Teeter in Charlottesville’s new Hollymead Town Center. 

            “PETsMART saw this as a fabulous opportunity to be in a new power center in a market they’ve been trying to get into for a while,” noted Wake.  “With visibility to Route 29 and the co-tenancy of Target, this outparcel was exceptionally appealing.”

DRE is the exclusive tenant representative for PETsMART in the Richmond and Hampton Roads MSAs.  Additional locations throughout Virginia are in the works

Similarly, Ross Dress for Less and Kohl’s have sought Divaris’ expertise for expansion throughout Virginia.  Gerald Divaris and Mary McGovern represent the two retailers in Hampton Roads; and Debbie Wake and Brett Womack, Richmond’s senior vice president, cover the western and central regions. 

Ross began 2005 leasing 30,189 square feet in Towne Square in Roanoke and added Richmond’s Willow Lawn, Chesapeake’s Crossroads at Chesapeake Square, and Newport News’ Jefferson Commons.  Kohl’s Department Stores also leased 88,000 square feet in Jefferson Commons.  Motivated by the recent residential and development growth, Kohl’s, Harbor Freight Tools, AC Moore and Boscov’s have all embarked in an exploration of new sites westward.

“The western Virginia market is considered dynamic by most big boxes,” says Womack.  “We’re actively seeking locations in Roanoke, Lynchburg, Blacksburg, Christiansburg, Danville, Waynesboro, Charlottesville and Harrisonburg for the big box retailers we represent.” 

Harbor Freight Tools took a 15,000-square-foot vacant Winn Dixie in Lynchburg’s Timberlake Station, adjacent to an existing 128,842-square-foot, Target-anchored power town.   Phase one of Ward’s Crossing West adds 250,000 square feet of retail to a 200-acre mixed-use development where Kohl’s will open later this year. 

“Target and Kohl’s are actively looking in western and central Virginia.  Boscov’s opened its first 180,000-square-foot Virginia store in Danville last September.  It is seeking sites in Richmond, Roanoke, Lynchburg and several other MSAs,” said Womack, who represents the Pennsylvania-headquartered department store.   “And, AC Moore is opening its first store in Roanoke with plans for Lynchburg and Richmond.” 

While space is at a premium in Virginia, new power centers like Ward’s Crossing West, promise to supply retailers with much needed sites.  Virginia’s retail market is continuously expanding, with no foreseeable slowdown in development or demand. The draw will certainly remain strong, and big boxes and junior anchors will continue to perform well. 

“I see a great deal of activity and new product in the future,” predicts Wake.  “Kohl’s and Target are doing well in these power towns, and retailers are following.  Secondary markets are also opportunities.  Retailers will see.”

Divaris Real Estate, Inc.
One Columbus Center, Suite 700
Virginia Beach, VA 23462
TEL: 757.497.2113 FAX: 757.497.1338
info@divaris.com