Armada Hoffler's Strategic Asset Management Drives Success at Town Center of Virginia Beach

Armada Hoffler, a vertically integrated real estate investment trust (REIT), has completed a significant office lease with Trader Interactive at its flagship mixed-use development, Town Center of Virginia Beach. This transaction underscores Armada Hoffler's strategic asset management and the resilience of the Town Center in the face of broader market weakness.



The lease agreement, which established a new benchmark for office rent per square foot in the location, involved a full 12,000-square-foot floor at 222 Central Ave. Trader Interactive, a digital marketplace company, will occupy the top floor of the 23-story building, previously occupied by Armada Hoffler. To accommodate the significant demand for office space in Town Center of Virginia Beach, Armada Hoffler relocated and consolidated its team's space, creating additional value within its existing portfolio.



Occupancy of Town Center of Virginia Beach's 800,000 square feet of office space increased from 95% at the end of the third quarter of 2024 to 98% at the end of the fourth quarter. In 2024 alone, more than 110,000 square feet of new office leases and renewals were completed. Overall office rental rates have gone up 20% in Town Center of Virginia Beach since 2020, reflecting the high quality of the office assets and premier location.

Armada Hoffler's strategic asset management has significantly contributed to the success of Town Center of Virginia Beach. The mixed-use format of the development, which combines office, retail, and residential components, creates a self-sustaining ecosystem that helps maintain occupancy and rent growth even during broader market weakness. The diverse tenant mix, including long-term tenants and the North American headquarters of CAR Group Ltd., indicates strong property fundamentals and tenant satisfaction.

The strategic location of Town Center of Virginia Beach, coupled with its vibrant business community, drives demand for both office and retail spaces. Armada Hoffler's ability to attract technology-focused companies like Trader Interactive, a digital marketplace company, highlights their strategic asset management. The combination of Class A office space with retail and residential amenities creates a compelling value proposition in the competition for knowledge workers.

In conclusion, Armada Hoffler's strategic asset management has driven the success of Town Center of Virginia Beach, making it a top choice for businesses seeking profitable commercial property investments. The mixed-use format of the development, coupled with its strategic location and strong property fundamentals, contributes to its resilience in the face of broader market weakness. As the real estate market continues to thrive, Virginia Beach remains a top choice for those seeking profitable commercial property investments.