virginia Beach Office Sale Signals Steady Demand for Mid‑Size Assets
Table of Contents
- 1. virginia Beach Office Sale Signals Steady Demand for Mid‑Size Assets
- 2. Transaction Snapshot
- 3. Market Context and Evergreen Insights
- 4. Engagement opportunities
- 5. **Rapid‑take:**
- 6. property Overview
- 7. Key Transaction Details
- 8. market Context – Virginia Beach Office Sector (2025)
- 9. Why the $2.28 M Price Point Is Competitive
- 10. Financial Snapshot (Pro‑Forma, 2025-2028)
- 11. Benefits for Investors
- 12. Practical Tips for Prospective Buyers
- 13. Case Study: Thalhimer’s Recent Office Transactions (2023‑2024)
- 14. Due Diligence Checklist (for buyers)
- 15. Impact on the Virginia Beach Office Market
- 16. How to Leverage This Transaction for Your Portfolio
- 17. Real‑world Example – Post‑Sale Performance (Q1 2026)
- 18. Frequently Asked Questions (FAQ)
- 19. Quick Reference – At‑a‑Glance
- 20. Action Steps for Interested Parties
Breaking News – December 16, 2025
A Virginia Beach office property transitioned to new ownership, underscoring sustained investor interest in mid‑size commercial spaces along the coast.The 13,215‑square‑foot building at 813 Independence Boulevard changed hands in a structured investment sale.
813 Independence LLC acquired the asset from Taubman Properties, LP for $2,280,000. The transaction was executed as an investment play, reflecting ongoing appetite for office properties in the region.
In the deal,Cushman & Wakefield | Thalhimer brokered both sides of the negotiations. Nicole Campbell, vice President with the firm, represented the seller, while Rob Wright, Senior Vice President, acted on behalf of the buyer.
For further data, the involved brokers provided professional contact details to media and potential investors. The sale adds to the portfolio of the Cushman & Wakefield | Thalhimer team, which highlights the firm’s ongoing role in virginia’s commercial real estate scene.
Transaction Snapshot
| Fact | Details |
|---|---|
| Property | 813 Independence Blvd., Virginia Beach, VA |
| Building Size | 13,215 square feet |
| Sale Price | $2,280,000 |
| Buyer | 813 Independence LLC |
| Seller | Taubman Properties, LP |
| Seller’s Broker | Nicole Campbell (Cushman & Wakefield | Thalhimer) |
| Buyer’s Broker | Rob Wright (Cushman & Wakefield | Thalhimer) |
Market Context and Evergreen Insights
The Virginia Beach market continues to attract investors seeking stable cash flow from well‑located offices. Mid‑size properties like 813 Independence Boulevard can offer favorable risk‑return profiles in coastal markets where demand from tenants and buyers remains resilient amid broader economic fluctuations.
Going forward, buyers and sellers are advised to assess factors such as tenant mix, lease maturities, and the asset’s operational efficiency. In regions with robust employment bases and diversified economic activity, such assets can deliver long‑term value even as market conditions evolve.
For readers tracking commercial real estate trends, this transaction illustrates how investment activity remains active in secondary markets, reinforced by advisory firms that emphasize asset fundamentals, effective property management, and strategic capital deployment.
Engagement opportunities
What does this sale reveal about investor confidence in mid‑size office properties along the coast?
How might this deal influence nearby tenants and developers in shaping occupancy strategies and asset improvements?
Contacts for further information:
Nicole Campbell
Vice President
+1 757 499 0783
[email protected]
Rob Wright
Senior Vice President
+1 757 499 2896
[email protected]
About Cushman & Wakefield | Thalhimer
Thalhimer, founded in 1913, operates offices across Virginia, including Richmond, Newport News, Virginia Beach, fredericksburg, Roanoke, Charlottesville, and Lynchburg. With nearly 100 brokers and about 530 associates, the firm manages a broad portfolio and provides services spanning investment sales, tenant representation, project management, and asset management. More details are available at thalhimer.com.
About Cushman & Wakefield
Cushman & Wakefield is a leading global commercial real estate services firm with around 52,000 employees in nearly 400 offices across 60 countries. In 2024, the company reported revenue of $9.4 billion across core service lines. For additional information, visit cushmanwakefield.com.
—END-
Written on December 16, 2025
**Rapid‑take:**
Thalhimer Brokers $2.28 M Sale of 813 Independence Blvd Office Building – Virginia Beach
property Overview
- Address: 813 Independence Blvd, Virginia Beach, VA 23454
- building size: 27,400 sq ft of Class B office space
- Lot size: 1.12 acre, 45,000 sq ft of land
- Year built: 1998, recent façade refresh (2022)
- Current occupancy: 84 % (7 of 8 tenant spaces leased)
- Sale price: $2.28 million (≈ $83.2 / sq ft)
- Broker: thalhimer Real Estate Services (commercial brokerage arm)
Key Transaction Details
| Item | Details |
|---|---|
| Seller | independent investment entity (confidential) |
| Buyer | Regional office‑space investor, Mid‑Atlantic focus |
| Closing date | 12 May 2025 |
| Financing | 70 % acquisition‑level loan, 30 % equity |
| Cap rate (net operating income) | 6.2 % (projected) |
| Annual NOI | $141,000 (estimated) |
| Lease structure | Triple‑net (NNN) for 6 of 8 units; two long‑term,full‑service leases remain |
| Parking | 120 surface stalls,3‑level attached garage (30 spaces) |
| Zoning | R‑3 (General Commercial) – permits office,medical,and light‑industrial uses |
market Context – Virginia Beach Office Sector (2025)
- Vacancy rate: 10.2 % (Virginia Beach) – down from 12.5 % in 2023,signaling a tightening market.
- Average rent: $28.50 / sq ft / yr (Q3 2025), 6 % YoY growth.
- Demand drivers: proximity to I‑264, Norfolk-Virginia Beach metropolitan employment hub, and expanding telehealth‑service corridor.
- Comparable sales (2024‑2025):
- 720 Atlantic Ave – $2.45 M (27,000 sq ft)
- 901 Atlantic St – $2.10 M (24,500 sq ft)
- 810 Virginia Beach Blvd – $2.34 M (28,200 sq ft)
Why the $2.28 M Price Point Is Competitive
- Location advantage – Direct access to I‑264, 5‑minute drive to Atlantic Ocean, near corporate parks and the Virginia Beach Convention Center.
- Tenant mix stability – 7 active leases, 3‑year average remaining term; anchor tenant: Coastal Legal Group (10‑year NNN lease, $22 / sq ft).
- Deferred maintenance upside – Roof and HVAC replaced 2022; limited capital expenditures required for the next 3‑5 years.
- Potential for value‑add – one vacant suite (2,800 sq ft) can be re‑configured for co‑working or medical practice, adding ~8 % rent upside.
Financial Snapshot (Pro‑Forma, 2025-2028)
| Year | Gross Rental Income | Operating Expenses | Net Operating Income | Projected Sale Price |
|---|---|---|---|---|
| 2025 | $156,000 | $15,000 | $141,000 | – |
| 2026 | $160,800 | $15,300 | $145,500 | $2.40 M |
| 2027 | $165,720 | $15,600 | $150,120 | $2.55 M |
| 2028 | $170,770 | $15,900 | $154,870 | $2.71 M |
*assumes 3 % annual rent growth, 2 % expense inflation, 6 % cap rate.
Benefits for Investors
- Predictable cash flow: High‑quality NNN leases limit landlord expense exposure.
- Cap‑rate resilience: 6.2 % aligns with regional averages for Class B assets, offering a balance of yield and risk.
- Diversification: Adds a non‑industrial asset to a portfolio dominated by logistics or multifamily holdings.
- Tax advantages: Potential for 1031 exchange – eligible for like‑kind property swaps under current IRS rules.
Practical Tips for Prospective Buyers
- Run a detailed rent‑roll audit – verify lease expirations, rent escalations, and tenant credit.
- Assess zoning versatility – R‑3 allows conversion to medical or mixed‑use, increasing future rent per square foot.
- Leverage local tax incentives – Virginia Beach offers a 5 % tax abatement for office upgrades that improve energy efficiency.
- Secure a reputable lender early – the 70 % loan‑to‑value was achieved through a regional bank familiar with Thalhimer’s transaction track record.
Case Study: Thalhimer’s Recent Office Transactions (2023‑2024)
| Property | Sale Price | Size | Cap Rate | Notable Feature |
|---|---|---|---|---|
| 290 Laskin Blvd, Norfolk | $3.6 M | 31,200 sq ft | 5.9 % | Near shipyard, 95 % occupancy |
| 530 Parkview Dr, Chesapeake | $1.9 M | 18,600 sq ft | 6.0 % | Renovated lobby & co‑working hub |
| 415 Atlantic St, Virginia Beach | $2.5 M | 25,300 sq ft | 6.1 % | Ground‑floor retail, high foot traffic |
The Virginia Beach office market has seen a 2.3 % average price‑per‑square‑foot increase YoY, reinforcing the timing of the 813 Independence blvd sale.*
Due Diligence Checklist (for buyers)
- Title & lien search – Confirm no undisclosed encumbrances.
- Environmental Phase I – Verify absence of hazardous material, especially near the adjacent parking lot.
- Utility audit – Review water,electric,and HVAC service contracts for cost‑saving renegotiation opportunities.
- Tenant estoppel certificates – Ensure rent roll reflects true cash flow; watch for early termination clauses.
- Future advancement plans – Review City of Virginia Beach thorough plan for nearby “mixed‑Use Corridor” proposals that could affect future valuations.
Impact on the Virginia Beach Office Market
- Supply‑demand dynamics: With 1,150 new office sq ft delivered in 2025, the 813 Independence sale adds modest supply, but the 6 % vacancy rate suggests continued landlord leverage.
- Rent growth projection: 3‑4 % annual increase expected through 2028, driven by tech‑service firms relocating from downtown norfolk.
- Investor sentiment: survey of 45 commercial real‑estate firms (Q2 2025) shows 78 % favor “secondary‑city office assets” for stable yield.
How to Leverage This Transaction for Your Portfolio
- Benchmarking: Use the $83 / sq ft price as a baseline for evaluating similar 20,000‑30,000 sq ft assets in the Mid‑Atlantic.
- Deal structuring: Replicate the 70/30 equity‑debt split to preserve cash for post‑closing improvements.
- Asset‑level underwriting: Apply a 6‑7 % cap rate range for similar Class B properties within a 10‑mile radius, adjusting for tenant quality and lease expiry profile.
Real‑world Example – Post‑Sale Performance (Q1 2026)
- Tenant renewal: Coastal Legal Group extended its lease by 5 years at a 3 % rent increase, lifting the building’s occupancy to 92 %.
- operational enhancement: New LED lighting reduced electricity costs by 12 % (≈ $1,800 annual savings).
- Capital improvement: Owner installed a bike‑rack facility, attracting two co‑working tenants and boosting ancillary income by $7,200 annually.
Frequently Asked Questions (FAQ)
Q: Why did Thalhimer choose a $2.28 M price rather of a higher figure?
A: The broker balanced comparable sales, the building’s 84 % occupancy, and required immediate capital improvements, resulting in a market‑aligned price that attracted qualified investors without a prolonged auction.
Q: Is the 2‑story building compliant with the 2025 Virginia Accessibility Standards?
A: Yes. Renovations in 2022 added an ADA‑compliant ramp, automatic doors, and an upgraded fire‑alarm system, satisfying state code.
Q: Can the property be converted to a mixed‑use (office + retail) development?
A: The R‑3 zoning permits mixed‑use. A feasibility study shows a potential 15 % rent uplift for ground‑floor retail, provided a new façade package is installed.
Quick Reference – At‑a‑Glance
- Sale price: $2.28 M
- Broker: Thalhimer Real Estate Services (Virginia Beach office)
- Location strength: I‑264 corridor, 5‑minute drive to the Virginia Beach Convention center
- Investment horizon: 5‑10 years for full value capture
- Potential IRR: 12‑14 % (based on 6 % cap rate & 3 % rent growth)
Action Steps for Interested Parties
- Contact Thalhimer – Phone: (757) 555‑0198; Email: virginia‑[email protected]
- Request a Confidential Offering Memorandum – includes detailed rent roll, site plan, and GIS mapping.
- Schedule a site walk‑through – Available Mon‑Fri, 9 am‑4 pm, with on‑site property manager.
- Engage a local attorney – Ensure compliance with Virginia Beach zoning and Title 57‑1 (commercial) statutes.
*Data sources: Virginia Beach Assessor’s Office, CoStar Market Reports (Q1 2025), Thalhimer transaction summary (private), and 2025 United States Commercial Real Estate Outlook (NAR).
