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Armada Hoffler Secures Office Lease at Town Center of Virginia Beach

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Armada Hoffler Properties, Inc. (AHH - Free Report) recently completed an office lease with Trader Interactive at Town Center of Virginia Beach. Trader Interactive leased a full 12,000 square feet floor at Armada Hoffler’s flagship mixed-use development.

The lease has set a new benchmark for office rent per square foot at Town Center of Virginia Beach.

Trader Interactive will take over the top floor of the 222 Central Ave. building, which was formerly occupied by Armada Hoffler. In response to the high demand for office space in Town Center of Virginia Beach, the company made the strategic move to relocate and consolidate its team's workspace. This move allowed it to enhance the value of its existing portfolio.

Locally referred to as the Armada Hoffler Tower, the 23-story building that Trader Interactive is moving into includes 324,000 square feet of office area, 38,500 square feet of street-level retail area, and a nine-story parking facility.

About Town Center of Virginia Beach

In the fourth quarter of 2024, occupancy of Town Center of Virginia Beach’s 800,000 square feet of office space was 98%, up from 95% recorded in the previous quarter. In 2024, more than 110,000 square feet of new office leases and renewals were completed. Since 2020, overall office rental rates in Town Center of Virginia Beach have increased by 20%, indicating the high quality of the office assets and premier location.

The overall Town Center of Virginia Beach mixed-use district has 620,000 square feet of retail space, 800,000 square feet of office space and 760 apartments.

AHH’s Management Commentary

Per Shawn Tibbetts, CEO and president of Armada Hoffler, “Town Center of Virginia Beach continues to buck national office real estate trends because it offers tenants a dynamic, all-encompassing environment for their employees to work, live and spend time in. This is essential to attract and retain corporate talent.”

Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 12.9% compared with the industry’s fall of 8.5%.

 

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Stocks to Consider

Some better-ranked stocks from the residential REIT sector are Equity Lifestyle Properties (ELS - Free Report) and UMH Properties (UMH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Equity Lifestyle’s 2024 FFO per share is pinned at $2.92, implying year-over-year growth of 6.2%.

The Zacks Consensus Estimate for UMH Properties’ 2024 FFO per share stands at 93 cents, indicating an increase of 8.1% from the year-ago figure.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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