Architect B. Kay Van Dyke purchased the T.C. Walker mural building at 6769 Main St. to offer co-working spaces, dedicated desks and small private offices. In the 2,000-square-foot space, members can meet clients and use high-speed Wi-Fi, the printer, coffee station and conference room. The space is conducive to offering classes.

The different levels of membership are open to 40 people, she said.

A basic membership is $95 monthly and offers open work areas with desks, kitchen, meeting space and conference room. An open-area dedicated workspace, with a worktable or desk, lockable storage and access to amenities, costs $200 monthly. Studios and offices are $3.50 a square foot. Facilities, for the conference room or classroom configuration, can also be reserved a la carte.

A successful entrepreneur, Van Dyke hopes to attract startups to create a business incubator atmosphere.

“By working in a co-working space with other entrepreneurs, it makes it easier to support each other and exchange ideas,” she said.

Continuous learning is also on this 85-year-old’s agenda. She said classes set to be offered include welding, taught by a blacksmith, and art classes.

The building, constructed in the 1930s, had been empty for more than 10 years. It stands out because of the murals on each side. This is just one of several endeavors Van Dyke has undertaken for Gloucester’s Main Street since she arrived with her late husband in 1985.

“I think I am still considered new,” she laughed.

In 2010, she purchased and restored an empty building to create Arts on Main. Van Dyke sold it in 2020 and bought another abandoned building for a co-op space called Village Art Colony, where local artists sell their work and teach classes.

When asked about starting another business, Van Dyke simply said, “I get bored easy, so I thought, ‘Why not?’”

Art/Work is expected to open this month. For more information, visit awvillage.com.

Harvey Lindsay Commercial Real Estate

GRP 2103 Maxwell LLC purchased an 8,550-square-foot industrial property on 4.95 acres at 2103 Maxwell Drive in Hampton from TD Sherman II LLC for $2.025 million. Charles Dickinson represented the seller.

ECG Properties VA LLC purchased the 34,417-square-foot retail property at 3410 and 3422 High St. and Halifax Street in Portsmouth from Brad Barker for $1.6 million. Bobby Beasley III and Bobby Beasley Jr. represented the seller.

PDCREF2 Shoulders Hill LLC purchased a 35-acre property, Parcel #20*10B on Shoulders Hill Road in Suffolk, from LF One LLC for $4.3 million. Bobby Beasley III handled this transaction.

Range Commercial Partners

B&D Holdings, a privately held investment and development firm in New Jersey, bought a 142,600-square-foot industrial warehouse at 401 Woodlake Drive in Chesapeake from Drew Rosen Family II LLC for $14,485,000. The warehouse was fully leased at the time of purchase. B&D Holdings’ real estate investment portfolio consists of over 225 properties comprising 9 million square feet throughout 34 states. Hamilton Shaheen, Marc Allocca and Matt Anderson helped in the off-market transaction.

LEASES

Cushman & Wakefield | Thalhimer

Dollar Tree leased 10,332 square feet of retail space at New Town Shops on Main, Monticello Avenue and Ironbound Road in Williamsburg. Dollar Tree is occupying the former Victoria’s Secret space, and the adjacent vacant space. Drew Haynie represented the landlord.

Little Sunshine Academy leased 6,850 square feet of industrial space at 3545 Victory Blvd. in Portsmouth. Tom Dana represented the landlord.

Aqua-Tots Swim School leased 6,000 square feet of retail space at Red Mill Commons Shopping Center, 2133 Upton Drive, in Virginia Beach. Dean Martin represented the tenant.

Port Rover LLC leased 6,000 square feet of office/warehouse space at 3112-3114 Tyre Neck Road in Portsmouth. Taylor Anderson represented the landlord.

CSTE INC. leased 3,075 square feet of industrial space at 610 N. Armistead Ave. in Hampton. Clay Culbreth represented the landlord.

ABD Construction Inc. leased 2,405 square feet of industrial space at 2100 Aluminum Ave. in Hampton. Ellis Colthorpe represented the landlord.

Chipotle leased 2,400 square feet of retail space at 3090 Godwin Blvd. in Suffolk. David Machupa and Ed Kimple represented the tenant.

Alberts Floor Restore Company LLC leased 1,800 square feet of industrial space at 3000 Incubator Road in Hampton. Ellis Colthorpe represented the landlord.

Precious Pearls Inc. leased 1,750 square feet of industrial space at Expressway Court Commerce Centre, 215 Expressway Court in Virginia Beach. Brett Sain and Taylor Anderson represented the landlord.

Senior Helpers leased 1,300 square feet of retail space at Pinewood Shoppes, 2921-2931 Virginia Beach Blvd. in Virginia Beach. John P. Duffy Jr. represented the landlord.

Dunn Coastal Enterprises Inc. leased 7,500 square feet of industrial space from Sincere Estates LLC for a Meineke Car Care Center. The property at 5823 Jefferson Ave. in Newport News was formerly Dunkums Machine Shop for over 50 years. Kenneth D. Penrose Jr. represented the landlord.

Iron Sheepdog Inc. leased 7,400 square feet of office space at 430 McLaws Circle in Williamsburg. Andy Dallas handled the lease negotiations on behalf of the landlord and the tenant.

Hounds Town Doggie Day Care leased 7,000 square feet of retail space at Hidenwood Shopping Center, 2 Hiden Blvd. in Newport News. Clay Willis and Drew Haynie represented the landlord.

Argo Turboserve Corp. leased 1,557 square feet of office space at Reflections II, 200 Golden Oak Court in Virginia Beach. Josh Fulton represented the tenant.

Harvey Lindsay Commercial Real Estate

Building Smiles PLLC leased 2,327 square feet of office space at 700 Independence Circle in Virginia Beach. Rob Sult and Michael Allen handled this transaction.

Shibam Yemeni leased 1,300 square feet of office space at 1215 George Washington Memorial Highway in York County. Matt Leffler handled this transaction.

PBMares LLP leased 10,253 square feet of office space at 440 Monticello Ave. in Norfolk. Clark Baldwin represented the tenant.

Ivy Rehab leased 3,898 square feet of office space at 502 Bud Drive in Chesapeake. Peter Abraham handled this transaction.

Cool Flames Café leased 1,250 square feet of retail space at 415 N. Military Highway in Norfolk. Bob King handled this transaction.

New Horizon Bank leased 2,192 square feet of office space at 321 E. Main St. in Norfolk. Ryan King handled this transaction.

Marine Equipment Supply LLC leased 12,651 square feet of industrial space at 2601 Trade St. in Chesapeake. Chip Worley handled this transaction.

Bordegaray Injury Law PLLC leased 1,290 square feet of retail space at 200 N. Battlefield Blvd. in Chesapeake. Kimberly Worley handled this transaction.

Cheryl L. Scott leased 7,820 square feet of retail space at 3315 W. Mercury Blvd. in Hampton. Bob Saunders and Bob King handled this transaction.

Kinetic Life Chiropractic leased 720 square feet of retail space at 681 N. Battlefield Blvd. in Chesapeake. Kimberly Worley handled this transaction.

Nomad Brothers Inc. leased 15,000 square feet of retail/industrial space at 4205 W. Mercury Blvd. in Hampton. Bob King handled this transaction.

Pembroke Realty Group

Virginia Beach Academy Inc. leased a 5,614-square-foot building at 223 17th St. in Virginia Beach. Cole Werkheiser represented the tenant.

DCCC leased 3,000 square feet of office/flex space at Trade Center at 105 S First Colonial Road in Virginia Beach. Cole Werkheiser and Lenny Burns represented the landlord.

Children Event Sitters LLC leased 1,600 square feet of retail space at Woodtide Shopping Center at 4676 Princess Anne Road in Virginia Beach. Lenny Burns represented landlord.

LEASE RENEWALS

Cushman & Wakefield | Thalhimer

The Marksman renewed its lease of 10,000 square feet of industrial space at 520 Industrial Park Drive in Newport News. Kenneth D. Penrose Jr. represented the landlord.

Jefferson Science Associates LLC renewed its lease of 9,275 square feet of industrial space at 727 Blue Crab Road in Newport News. Robert L. Phillips Jr. represented the landlord. Dawn F. Griggs represented the tenant.

Bon Secours renewed its lease of 8,587 square feet of office space at 885 Kempsville Road in Norfolk. Rob Wright represented the tenant.

MR. FIX-IT renewed its lease of 4,466 square feet of industrial space at Norfolk Business Center, 2551 Eltham Ave. in Norfolk. Brett Sain represented the tenant.

Anna’s Italian Pizza renewed its lease of 3,600 square feet of retail space at Main Street Center, 6872-6920 Main St. in Gloucester. Dawn F. Griggs represented the landlord.

Atlas Technical Consultants LLC renewed its lease of 2,500 square feet of industrial space at Expressway Court Commerce Centre, 211 Expressway Court in Virginia Beach. Brett Sain represented the landlord.

Innovative Waste renewed its lease of 1,800 square feet of industrial space at 2608 Horse Pasture Road in Virginia Beach. Brett Sain represented the landlord.

J.S. Burton PLC renewed its lease of 1,248 square feet of office space in New Town at 5435 Discovery Park Blvd. in Williamsburg. Andy Dallas represented the landlord.

Reyna Agency Solutions Inc. renewed its lease of 1,040 square feet of retail space at Wards Corner Shoppes, 7623-7655 Granby St. in Norfolk. Ted Levin represented the landlord.

Swisslog Logistics Inc. renewed its lease of 44,066 square feet of office space at 161 Enterprise Drive in Newport News. Tom Dana represented the landlord.

Rone Hair Salon renewed its lease of 1,800 square feet of office space in Oyster Point at 740 Thimble Shoals Blvd. in Newport News. Teresa Nettles represented the landlord.

Norseman Advisory Group Inc. renewed its lease of 1,606 square feet of office space in Oyster Point at Peninsula Professional Building, 11818 Rock Landing Road in Newport News. Teresa Nettles represented the landlord.

CO Technologies renewed its lease of 1,590 square feet of office space at Strawbridge Commons, 2180 McComas Way in Virginia Beach. Josh Fulton represented the landlord.

OffBe renewed its lease of 1,448 square feet of office space at 4161 William Styron Square in Newport News. Teresa Nettles represented the landlord.

Small Cakes Williamsburg renewed its lease of 1,344 square feet of retail space at Settler’s Market at New Town, 5224 Monticello Ave. in Williamsburg. Andy Dallas represented the tenant.

Outback Construction renewed its lease of 1,205 square feet of industrial space at 2100 Aluminum Ave. in Hampton. Ellis Colthorpe represented the landlord.

Albano Cleaners renewed its lease of 1,200 square feet of retail space at Brenneman Farm, 4540 Princess Anne Road in Virginia Beach. Dean Martin represented the landlord.

Jamestowne Investments, LLC renewed its lease of 1,182 square feet of office space at The Atrium Building, 263 McLaws Circle, in Williamsburg. Andy Dallas, CCIM, SIOR handled the lease negotiations on behalf of the landlord.

Harvey Lindsay Commercial Real Estate

Ohio Valley Acquisition LLC renewed its lease of 2,500 square feet of office space at 1040 University Blvd. in Portsmouth. Kimberly Worley handled this transaction.

PPG Architectural Finishes Inc. renewed its lease of 6,700 square feet of industrial space at 1303 Ingleside Road in Norfolk. Chip Worley handled this transaction.

Kiln Creek Tailor renewed its lease of 1,000 square feet of retail space at 1213 A George Washington Memorial Highway in York County. Matt Leffler handled this transaction.

LifeStance Health renewed its lease of 3,917 square feet of office space at 580 City Center Blvd. in Newport News. Clark Baldwin and Bob Saunders handled this transaction.

BIH Electric LLC renewed its lease of 900 square feet of industrial space at 300 Commerce Circle in York County. Matt Leffler handled this transaction.

Canvas Coffee House renewed its lease of 1,200 square feet of retail space at 400G Commerce Circle in York County. Matt Leffler handled this transaction.

Honey Baked Ham renewed its lease of 3,264 square feet of retail space at 4801 Virginia Beach Blvd. in Norfolk. Bob Saunders handled this transaction.

Tidewater Physicians Multispecialty Group PC renewed its lease of 2,050 square feet of retail space at 1405 Kiln Creek Parkway in Newport News. Bob Saunders handled this transaction.

Friend Village renewed its lease of 1,000 square feet of office space at 3386 Holland Road in Virginia Beach. Ryan King handled this transaction.

Nam’s Cleaners renewed its lease of 1,600 square feet of retail space at 13002 Warwick Blvd. in Newport News. Kimberly Worley handled this transaction.

Buddy’s Home Furnishings renewed its lease of 6,000 square feet of retail space at 1782 East Little Creek Road in Norfolk. Larry Hecht and Bob King handled this transaction.

Vino Italian Bistro renewed its lease of 4,000 square feet of retail space at 5242 Fairfield Shopping Center in Virginia Beach. Kimberly Worley represented the tenant.

Pembroke Realty Group

Quality Used Furniture renewed its lease for 1,086 square feet of retail space at Gibson Plaza at 3972 Holland Road in Virginia Beach. Cole Werkheiser represented the landlord.

Sweet Kream Bakery renewed its lease for 1,100 square feet of retail space at Knells Ridge Square at 805 N. Battlefield Blvd. in Chesapeake. Lenny Burns represented the landlord.

Compassionate Companions renewed its lease for 690 square feet of office space at The Meadows at 505 S. Independence Blvd. in Virginia Beach. Lenny Burns represented the landlord.

Pembroke Chiropractic Center renewed its lease for 1,250 square feet of retail space at Pembroke Crossing Shoppes at 4668 Pembroke Blvd. in Virginia Beach. Lenny Burns represented the landlord.

Fear Not Tarantulas Inc. renewed its lease for 2,117 square feet of retail space at the Shoppes at Timberlake at 4291 Holland Road in Virginia Beach. Lenny Burns represented the landlord.

Haygood Family Hair Center renewed its lease for 1,051 square feet of office/retail space at 4609 Pembroke Lake Circle in Virginia Beach. Lenny Burns represented the landlord.

Virginia Plastic Surgery Center renewed its lease for 2,919 square feet of office space at First Colonial Medical Center at 1120 First Colonial Road in Virginia Beach. Lenny Burns represented the landlord.

C-4 Classic Columbian Coffee Cafe renewed its lease for 1,000 square feet of retail space at Woodtide Shopping Center at 4676 Princess Anne Road in Virginia Beach. Lenny Burns represented the landlord.

Riddle Associates Inc.

E-Merge Systems LLC renewed its lease at 341 Cleveland Place in Virginia Beach. Lindsey R. Elliott handled the negotiations.

CACI Inc. renewed its lease at 124 Robert Hall Court in Chesapeake. Lindsey R. Elliott and Robb Riddle handled the negotiations.

TCI Mechanical Inc. renewed its lease at 620 Innovation Drive in Chesapeake. Lindsey R. Elliott handled the negotiations.

Leather Luster renewed its lease at 908 Executive Court in Chesapeake. Robb Riddle handled the negotiations.

Danella Construction Inc. renewed its lease at 1508 Technology Drive in Chesapeake. Larry Rumsey handled the negotiations.

Omni Psychotherapy LLC renewed its lease at 920 Ventures Way in Chesapeake. Lindsey R. Elliott handled the negotiations.

AFMCVA Inc. renewed its lease at 1170 Lance Road in Norfolk. Bill Brackman handled the negotiations.

Glasser Customs US Inc. renewed its lease at 1170 Lance Road in Norfolk. Bill Brackman handled the negotiations.

Do It Wright LLC renewed its lease at 3901 Garwood Ave. in Portsmouth. Bill Brackman handled the negotiations.

Quantra Environmental renewed its lease at 1170 Lance Road in Norfolk. Bill Brackman handled the negotiations.

Allied Research Technology Inc. renewed its lease at 500 Freeman Ave. in Chesapeake. Larry Rumsey handled the negotiations.

The Wood Group renewed its lease at 809 Live Oak in Chesapeake. Lindsey R. Elliott handled the negotiations.

RAZ Inc. doing business as Razorback Grill renewed its lease at 3737 Holland Blvd. in Chesapeake. Lindsey R. Elliott handled the negotiations.

Home Technology by Masters Inc. renewed their lease at 622 Innovation Drive in Chesapeake. Lindsey R. Elliott handled the negotiations.

S.L. Nusbaum Realty Co.

Your Pie exercised its option on 2,100 square feet of retail space at K&K Square Shopping Center in Norfolk. Maggie Spillane represented the landlord.

Dragon Restaurant extended its lease on 1,640 square feet of retail space at Colley Village Shopping Center in Norfolk. Pierce Jacobson represented the landlord.

Muse Hair Salon extended its lease on 1,400 square feet of retail space at Glenwood Square Shopping Center in Chesapeake. Maggie Spillane represented the landlord.

Nation Nails II extended its lease on 1,200 square feet of retail space at Wythe Creek Shoppes Shopping Center in Hampton. Pierce Jacobson represented the landlord.

State Farm Insurance renewed its lease on 1,200 square feet of retail space at Quarterpath Crossing Shopping Center in Williamsburg. Tyler Jacobson represented the landlord.

Scents extended its lease on 630 square feet of retail space at Suffolk Plaza Shopping Center in Suffolk. Chris Hucke represented the landlord.

If you’re considering entering this market, you might wonder if now is the right time? In addition to exploring the current state of commercial real estate and what influences its outlook, this column offers practical insights for potential investors.

There is an overall positive outlook for commercial real estate in what is left of 2024. The multifamily sector is doing exceptionally well, as high mortgage rates have spurred demand for apartment buildings. The industrial sector continues to be strong, and is not expected to slow down, due to the long-lasting impact of e-commerce.

Although demand is not high, the retail sector is benefiting from its limited supply, which has resulted in low vacancy rates thus far in 2024. The sector most negatively impacted this year has been office space with office vacancies reaching record highs. Hotel properties, on the other hand, have been performing well with occupancy rates back to pre-pandemic rates.

Factors influencing investment

Several key factors affect whether commercial real estate is a good investment right now:

Interest rates and financing: Commercial real estate goes hand in hand with commercial lending, a very important factor for potential investors to take into consideration. Interest rates have been an especially “hot topic” for 2024. The Federal Open Market Committee has met five times so far, but has yet to make any changes. The committee’s next meeting is set for Sept. 17-18 and there is much speculation of a possible interest rate cut.

Between March 2022 and July 2023, the interest rate was increased 11 times, stabilizing at the range of 5.25% to 5.5% — where it has remained since July 2023. The main takeaway is that even with potential interest rate cuts, it will take time for notable change to occur.

Leigh Houghland, senior lending officer for Chesapeake Bank and regional executive for Chesapeake Bank’s Williamsburg Market, provided insight from a regional bank perspective. His outlook is more positive in terms of commercial lending: “Yes, we have felt and heard that some of the larger banks are just not choosing to do commercial real estate at all unless it is owner occupied. At Chesapeake Bank, we continue to lend. Our loan portfolio is up 12% year over year, while most of our peers are low single digit growth or their loan portfolios are shrinking. And we continue to do deals on owner occupied and investment properties. Higher interest rates certainly make the math on CRE purchases more difficult. In some cases, buyers have been able to get the seller to lower their price a little to make the project viable for the new owner.”

Local economic conditions: Investors need to be aware of what is happening in their local economy when choosing commercial real estate investments and the Hampton Roads Economic Monthly is an excellent resource for those in our area. It is prepared by regional economists for the Hampton Roads Planning District Commission. In the July issue, both retail sales and hotel revenue were reported to have gone up in Hampton Roads. Furthermore, based on data from the Bureau of Labor Statistics, HRPDC reported the largest civilian job growth for the Hampton Roads area occurred in health care and social assistance, construction and educational service. Lastly, what is most notable in regards to our local economy is “the unemployment rate remains below 3% and more than a percentage point below the national average.” Thus, the local economy does not always sync with the national economy and can impact how one chooses to invest.

Sector-specific opportunities: Commercial real estate is made up of many sectors. For those interested in investing, it is important to understand the type of properties available. The following sectors are options to explore: multifamily-apartment, industrial-warehouses and distribution centers, office buildings, shopping centers and malls, self-storage units, data centers, hotels, medical office buildings, student housing, senior housing, mixed-use properties and land.

Regulations and policies: Government rules, zoning laws and tax incentives affect the profitability of commercial real estate investments. Staying informed about these regulations is crucial for minimizing risks.

Tips for investors

If you’re thinking about investing in commercial real estate, here are some practical tips:

Research and due diligence: Study local market conditions, vacancy rates and rental trends. Thorough research helps in making smart investment choices.

Financial planning: Analyze potential returns and financing options carefully. Consult with experts to ensure your financial strategy is sound.

Risk management: Diversify your investments to spread risk. Consider long-term leases and stable markets to reduce volatility.

Long-term approach: Real estate investments often pay off over time. Patience and a strategic approach can lead to profitable outcomes.

Innovation and adaptability: Incorporate sustainable practices and tenant-friendly features to enhance property value.

Although post-pandemic years have proven to be challenging, there is still much opportunity ahead. With the right approach, today’s market is looking hopeful for commercial real estate investors, and now would be a great time to start investing.

Elise Campana Lahneman is an associate broker with Campana Waltz Commercial Real Estate West. Learn more at cwcrew.net.

“If you don’t have between $600,000 and $800,000, you’re not buying a house out there,” Reese said. “Las Vegas has a lot of opportunity, and it was affordable in 2006, but it’s become unaffordable. We quit our jobs and moved across the country. We’re hoping this is the right decision for us.”

Reese and her family are unpacking at her parents’ Youngstown home, a temporary stop until she and her husband, who was a casino worker in Las Vegas, can find jobs and a house of their own with their young daughter. Youngstown is one of the last two metro areas in the country where a household with nearly any income should be able to find a single-family home they can afford to buy, according to an analysis of April data by the National Association of Realtors.

Before the pandemic, there were 20 states that were considered affordable as a whole under the group’s definition, including the presidential election swing states of Michigan, Pennsylvania and Wisconsin. As of this year, there is none. Even the states with the closest match between income and home prices — Iowa, West Virginia, Ohio, Indiana and Michigan — didn’t make the cut.

Since the pandemic, two states, Montana and Idaho, have surpassed California as the most unaffordable states for local homebuyers, according to the analysis. Hawaii and Oregon round out the list of the five least affordable states.

The Realtors’ analysis assigns affordability scores to states and large metro areas on a scale of 0 to 2. A score of 0 means that no household can afford any home on the market.

A score of 1 means that homes on the market are affordable to households in proportion to their position on the income ladder — in other words, 100% of families can afford at least some homes on the market. And a score of 2 would mean that all households can afford all homes on the market, but no state or metropolitan area even reached a 1.

The least affordable metro area was Los Angeles, which scored only 0.3, while the metro areas of Youngstown (0.97) and Akron (0.95) in Ohio were rated most affordable.

According to the latest estimates from July by real estate company Redfin, median single-family home sale prices were $175,000 in Youngstown and $239,500 in Akron. That compared with $487,000 in Las Vegas, $490,000 in Boise and $1 million in the Los Angeles area.

The Las Vegas area, where the Reese family had lived for 18 years, had a score of 0.5 on the Realtors’ scale. No state earned an overall score of 1, though Iowa, West Virginia and Ohio came close, at nearly 0.9. The least affordable states, Montana, Idaho, California, Hawaii and Oregon, all had scores around 0.4.

Nationwide, home affordability has evaporated over the past three years as interest rates have gone up, according to a monitoring index maintained by the Federal Reserve Bank of Atlanta. It measures affordability more simply than the Realtors’ analysis, focusing solely on the ability of a homebuyer with the median household income to buy the median-priced house.

By that measure, the national affordability percentage was above 100% between January 2019 and April 2021. But it fell as low as 67% last year and remained below 70% in June, meaning a homebuyer with the median income had only two-thirds of the earnings needed to buy the median-priced house.

Home prices have increased by 47% nationwide just since 2020, according to a June report by the Harvard Joint Center for Housing Studies. A major factor is that there aren’t many homes for sale: Many current homeowners are reluctant to sell because they’re locked into historically low interest rates. Meanwhile, investors have gobbled up single-family starter homes, reducing the supply.

Lawrence Yun, chief economist for the National Association of Realtors, said there are signs of more houses coming up for sale. For example, there was a 20% increase in houses and condos for sale in July compared with July 2023, according to the association.

“We are still short on inventory, but I think the worst is over,” Yun said. “We have seen mortgage rates begin to decline, so it’s less of a big financial penalty to move and give up a low interest rate. And the second factor is just the passage of time — life-changing events always occur, a death, a divorce, a new child or just job relocation, and that means changing residence.”

Along with high prices and interest rates, home buyers are getting slammed by higher property taxes and insurance costs, according to the Harvard Joint Center for Housing Studies.

Home prices in northeast Ohio might be lower because the area has a stable population, curbing competition and bidding wars, said Alison Goebel, executive director of the Greater Ohio Policy Center, a Columbus nonprofit aimed at revitalizing Ohio cities.

“Our population numbers have remained fairly steady in the last several decades, so we don’t have egregious demand and supply issues like you see on the West Coast and other rapidly growing areas,” Goebel said.

Montana and Idaho are the least affordable states: Housing prices are exploding in both, as deep-pocketed newcomers — many of them white-collar employees working in high-wage jobs based out of state — have driven up prices beyond what longtime residents can afford.

The city of Boise scored 0.4 on the Realtors’ affordability scale, on par with the New York City area. Like Montana, Idaho has natural beauty that is attracting people who are cashing out of more expensive areas, said Nicki Hellenkamp, Boise’s director of housing and homelessness policy.

“It’s one of the Zoom boom towns, where it’s beautiful but the wages are low, and the cost of living is low. If you sell your house in Los Angeles and buy two houses here, as my uncle did, then you can have a very different standard of living,” Hellenkamp said.

It’s not just home prices — rents are up 40% in Boise since the pandemic began, she added.

“Obviously wages didn’t go up 40%, so some people have been displaced,” Hellenkamp said.

The city is working on modest proposals to help with down payments and to create more affordable apartments, she said, but building more affordable housing will mean state and federal cooperation to help solve labor shortages and soaring material costs.

“We can’t do this alone as a city. This issue is a big one,” Hellenkamp said.

A state housing task force in Montana made recommendations in June to streamline construction of houses and apartments statewide and create incentives for cities to loosen zoning and allow denser housing.

A member of the task force, Kendall Cotton, said he personally found it impossible to buy a house in Montana, but was happy to recently purchase half a duplex for his growing family.

“We were thrilled to have that as an option, just to get our foot in the door and start on our journey to homeownership,” Cotton said. “Montana is an in-demand place. We’ve been kind of discovered in the last couple of years.”

Republicans and Democrats have come together to support fighting restrictive zoning, said Cotton, director of the Frontier Institute, a nonprofit policy and educational organization.

“We’re a free-market organization that tends to lead from right of center, but when I was at the governor’s press conference to support these issues, I was standing shoulder to shoulder with a Democratic socialist city council member and we were all united on this,” Cotton said.

Shallon Lester, a YouTube influencer who moved from New York to Montana and paid $1 million for a five-bedroom house in Bozeman in 2022, said she likes both the lower cost of living and the lifestyle there. Locals tend to think she’s an outsider “invading” the area, she said, but “people like me take nothing from this economy — we only give. We spend and spend.”

“People who are remote workers are sick of the cost of living in cities,” Lester added. “There’s a mass return to the concept of the simple life.”

Even in the Youngstown metro area, which includes a slice of Pennsylvania, housing can be a challenge for residents with low incomes. A forthcoming regional housing study has found a 4,000-unit shortage for households making less than $25,000 a year; 7,500 people are on a waiting list for subsidized housing. Black and Hispanic residents are more likely to struggle with housing costs, as are older people, young singles and families with young children, according to preliminary conclusions discussed in April.

But for many, Youngstown is a rare island of affordability. Jim Johnston, 40, a digital account executive at media company Nexstar in Youngstown, said many of his high school classmates from the area, who now live in places such as Montana, Illinois and Maryland, envy his decision to stay there and buy a $250,000 house in 2022 when interest rates were lower.

“One of them has a mortgage payment three times mine for the same size house, and a child care bill that’s bigger than my mortgage,” said Johnston. “They could put an extra $50,000 or $60,000 a year in their pockets. Remote work has opened up new possibilities for them, and they’re considering this very seriously.”

In August, the business opened Baker’s Crust Bagel in Hilltop North Shopping Center in the former Your Pie space. The bagels come partially boiled from New York and are freshly baked by Baker’s Crust Bagel shop. Ess-a-Bagel has operated in Manhattan since 1976.

Baker’s Crust owner John Stein wanted to bring more authentic New York bites to his newest restaurant, so the menu also features Carnegie pastrami, black and white cookies and authentic New York-style cheesecake, a recipe developed in collaboration with Carnegie Deli. Other specialty items include lox, whitefish salad and house-baked chocolate babka.

Eric Williams, a Baker’s Crust consultant, said the menu showcases the best and most authentic versions of items that one would find in a New York City deli.

“We get Gaspe Nova cold-smoked salmon fillet and hand carve it thin to make the lox,” Williams said. “It takes over an hour, and then we use the extra in the smoked salmon cream cheese.”

Customers will find a creative selection of schmear, or cream cheese, to go with the bagels. Spreads include flavors like Oreo cookie, smoked salmon, red velvet, avocado garlic, maple bacon and seasonal varieties.

Adam Cohen, Baker’s Crust marketing director, said the most popular sandwich so far has been the Carnegie Pastrami, which features a half pound of Carnegie pastrami, Boar’s Head Swiss, sauerkraut and Gulden’s spicy mustard. Customers can also substitute coleslaw and Russian dressing.

A unique menu offering called The Wookie is an open-faced bagel dressed with peanut butter and brûléed marshmallow fluff. Breakfast sandwiches, smoothies, acai bowls, grab-and-go salads and a coffee bar featuring regional Three Ships Coffee are also available.

Cohen said Baker’s Crust Bagel is all about New York City cuisine and ambiance. He said the restaurant not only brings the “quintessential New York bagel,” but black and white New York iconography, Ess-a-Bagel artwork and reclaimed historic NYC wood that was crafted into a communal table by Benevolent Design, a Virginia Beach furniture company.

“Baker’s Crust Bagel is a passion project,” Stein said. “It’s a labor of love with the goal of bringing authentic New York excellence to Virginia.”

Rachel Davis, an employee at the bagel shop, said customers frequently ask if their bagels have New York water. The answer is yes.

“You can taste New York in the bagel,” she said.

Lee Belote, jlbelote@verizon.net

___

If you go

What: Baker’s Crust Bagel

Where: Hilltop North Shopping Center, 1624 Laskin Road, Suite 754, Virginia Beach

Info: Bakerscrustbagel.com

Falling Prices opened in the former Burlington Coat Factory space at 14346 Warwick Blvd. in September. It’s the seventh store for the family-owned business that started in Santa Rosa, California, and it’s the first one on the East Coast.

The store’s unique concept is that prices successively get lower every day of the week. Falling Prices opens on Tuesdays, with everything costing $6. Each day, the prices fall — to $4 on Wednesdays, $2 on Thursdays, $1 on Fridays and 25 cents for what’s left on Saturdays.

The store is then restocked for the next week. Customers can come at the end of the week and find jackets, toys, electronics, home goods or boxes of chips for only 25 cents.

“You’ll get amazing deals, but you’ll have to search for them,” owner Ben Cawood said. “It’s like a scavenger hunt for the customer.”

Items are stocked on shelves and in bins, and the categories and types of merchandise are mixed throughout the store. Larger and higher value items are placed on shelves, and the smaller ones are found in bins. The treasure-hunt like experience encourages customers to explore and find the best deals, Cawood said.

The inventory comes from an assortment of retailers such as Amazon, Target, Home Depot, Walmart, Lowe’s and other large retailers. The items are a mix of overstock, box damage or returns. Four to six truck trailers arrive weekly and contain 10,000-80,000 new items. Employees must triage the items as trash or treasures to be sold in the store.

Cawood said Dollar Tree has often had to agree to let Falling Prices come into the same shopping centers as the new concept brings in foot traffic, which can also boost the dollar retailer’s sales.

“While Dollar Tree offers great prices on items you can expect to find every time you visit, our store provides a completely different experience,” he said. “Customers never know what they’ll find, making it exciting.”

Falling Prices offers optional line passes to help manage the order of entry into the store. The line pass system is accessed through the Falling Prices app, which is only used at 10 a.m. when the store opens. Customers can reserve their spot in line ahead of time to avoid standing in long lines before the store opens.

“We’ve seen how this model thrives on the West Coast, and I’m eager to bring the same great value and excitement to new communities,” Cawood said. “With inflation affecting everyone, it’s a way for people to access quality items at a fraction of their retail cost. It’s like Black Friday every day.”

Lee Belote, jlbelote@verizon.net

The housing market has an affordability problem. During the pandemic, historically low mortgage rates boosted demand, driving home prices to record highs. After decades of underbuilding, construction labor shortages and rising material costs, the supply shortage continues to push homeownership further out of reach. To afford the typical home today, Americans need at least a six-figure salary, according to a Bankrate study.

While the housing market typically isn’t moved by presidential elections, both Vice President Kamala Harris and former President Donald Trump have weighed in with varying proposals. While these would need approval in Congress to move forward, here’s what we know about their plans so far, and what the experts think.

Affordable housing

Vice President Harris has shared plans for 3 million new housing units over the next four years, spurred by a tax break incentivizing home builders to create more starter homes. She has also proposed up to $25,000 in down payment assistance for eligible first-time homebuyers, along with restrictions on how landlords determine rent increases and limits on tax breaks for institutional investors who buy single-family homes.

It’s unclear if such plans would work. The rent cap, for example, could have unintended consequences, says Mark Hamrick, Washington bureau chief and senior economic analyst for Bankrate.

“Price controls including constraints on rent can have the impact of limiting supply which, in turn, can exacerbate the problem,” Hamrick says. “Who wants to build or own if they’re constrained from setting prices?

Meanwhile, former President Trump has suggested opening tracts of federal land for housing development, removing restrictive regulations on homebuilding and addressing supply chain disruptions.

“Almost 25% of the cost of a newly constructed single-family home is embedded in regulations at all three levels of government,” says Jim Tobin, president and CEO of the National Association of Home Builders (NAHB), which lobbies on behalf of pro-business and pro-housing candidates. For a multifamily unit, that share is closer to 43%.

Though Trump hasn’t yet detailed how he’d reduce regulations, his past tenure could hint at what might come. In his first term, he signed into law the Tax Cuts and Jobs Act (TCJA), which included a lower corporate tax rate and a provision creating Opportunity Zones to encourage investment in lower-income areas.

“Changes in tax policy, if significant, could have a variety of impacts on the economy and the housing market, in particular,” Hamrick says. “A lower corporate tax rate could stimulate housing activity, boost investment and potentially lead to increased housing market activity. Among the potential ripple effects could be a rise in construction, more supply and lower home prices.”

On the flip side, a higher corporate tax rate could have the inverse effect, Hamrick says. Home builders could scale back activity or pass the higher costs onto homebuyers.

“Former President Trump said he wants to lower the C corp rate,” says Bill Kilmer, senior vice president of Legislative and Political Affairs at the Mortgage Bankers Association (MBA), which represents the housing finance industry. “I imagine that, like the Biden budget proposal, Vice President Harris would want to raise the corporate rate as a means of revenue to pay for some other priorities.”

Fannie Mae and Freddie Mac

In his first term, Trump zeroed in on Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) underpinning the U.S. housing finance system. In the wake of the 2008 housing crisis, Fannie and Freddie were placed under government conservatorship to help stabilize the market.

Trump has advocated for taking the GSEs out of conservatorship, which could lead to more competition — in other words, more options — in the mortgage market and minimize taxpayer exposure, Kilmer of the MBA says.

It could also raise mortgage costs, says Chen Zhao, senior manager of Economics at real estate brokerage Redfin.

“When Fannie and Freddie were in trouble, there was this question of, ‘Is there an applied guarantee from the federal government for these mortgage-backed securities (MBS)?’ And the answer turned out to be yes, because the government basically just took them over,” Zhao says. “But once you introduce that question mark about whether or not the MBS are guaranteed, it means that rates have to trade for a little bit higher in order to account for that additional risk.”

For her part, Harris has pointed to a 2015 Moody’s study that found privatizing Fannie and Freddie would add approximately $1,200 a year to the cost of a typical mortgage. ​​

“(Harris) really wants (the GSEs) as permanent, sponsored entities with those professional charters to lean in more to the mission side of their charter and their affordable housing mandate,” Kilmer says. “Not just their goals, but also sort of what they can be doing to increase supply and affordability.”

Immigration

Trump has indicated that, if reelected, he plans to deport millions of undocumented immigrants — a move his campaign has said would help lower housing costs.

Yet, approximately 20% of the construction labor force — residential and otherwise — is immigrant labor, according to Tobin of the NAHB.

“The construction industry has struggled with lack of labor supply for years,” Hamrick says.

“The thing about the recent wave of immigrants is that they don’t demand a lot of housing, actually, because they are either housed in public housing or they’re housing with relatives or friends,” Zhao says. “So, there’s not a lot of net housing demand that’s being added.”

Harris has shifted her stance on immigration — circling back to investing in the southern border wall — but continues to oppose mass deportations. During the Democratic National Convention in August, Democrats touted solutions to expanding legal entry and paths to citizenship.

“We’ve got to find a way to create a visa system for immigrants who want to work in the construction sector, to come into this country under a visa and work in our sector,” Tobin says. “We’re hopeful that the next President of the United States will lead into that and solve that problem.”

Interest rates

Trump has also suggested he would lower interest rates if reelected — but the Federal Reserve, not the president, sets monetary policy, and the Fed operates independently of who sits in the Oval Office.

“History has shown that in countries where politics infects monetary policy, it is less effective,” Hamrick says. “Translated, that means there’s a higher risk of inflation when heads of state or government try to muscle their central banks.”

Harris has said she wouldn’t interfere with the Fed, but rather focus on lowering costs.

To that end, mortgage rates have already started retreating, and forecasters expect them to continue cooling into 2025.

“Rates probably are coming down on their own anyways,” Zhao says.

Tariffs and trade

In his first term, Trump imposed a series of tariffs to restrict foreign trade, particularly with China, including on building materials like steel and aluminum. Many of these tariffs are still in place today.

Harris hasn’t said much on trade to date, but it’s unlikely the U.S. would return to the pre-Trump era of free trade.

If elected to a second term, Trump has said he’d impose further tariffs, including a 10% to 20% tax on all imports, and up to a 60% tax on imports from China. That would add to inflation, according to a recent Goldman Sachs report.

“It is well documented that if you increase tariffs, you basically increase prices. So that has a big inflationary impact,” Zhao says.

While housing costs tend to outpace inflation, higher prices overall make it harder for Americans to afford everyday expenses and set aside savings, such as for a down payment on a home.

“Abnormally high inflation does what inflation tends to do, which is to make prices go higher, robs purchasing power and would ultimately coincide with rising or higher interest rates,” Hamrick says. “Does that sound familiar? It should because that’s what we experienced in recent years. Central banks, like our own Federal Reserve, raise benchmark rates in response to high inflation. That ultimately catches up to mortgage rates and typically slows the broader economy.”

(Visit Bankrate online at bankrate.com.)

©2024 Bankrate.com. Distributed by Tribune Content Agency, LLC.

The latest executive director of the Norfolk Redevelopment and Housing Authority was also drawn to the organization’s sizable portfolio that touches more than 9,000 households, the opportunities to partner with a wealth of industries and the chance to make a difference in people’s lives.

Founded in 1940, NRHA’s work focuses on providing safe and affordable housing for low-income families within the city. It manages public housing developments, plans large-scale residential redevelopment projects and offers support programs.

Modernization and upgrade efforts continue in Diggs Town, Oakleaf Forest and Young Terrace, Simms said. The final phase in the transformation in the St. Paul’s community should be completed toward the end of 2027, he said.

Simms came on board with the authority nine months ago, but his enthusiasm and commitment are already apparent. He said he started three weeks early so he could meet with and listen to various stakeholders, authority board members and team members, residents, resident leaders, City Council and Mayor Kenny Alexander.

“I wanted to see what their expectations were, what worked and what didn’t work, in their viewpoint, in terms of working with NRHA,” Simms said. “I got a lot of feedback and insight into what people wanted to see — and it aligned with what I saw as well.”

One commonality was that everyone wanted a more responsive housing authority when it came to understanding the need for expanded affordable housing opportunities in Norfolk.

Acknowledging that everyone defines affordability differently, and in traditional and non-traditional ways, Simms said his work includes addressing the city’s aging portfolio and maintaining strong relationships, mending others and forging new ones.

He said the authority wants to lay out its vision for the renovation and redevelopment of communities, strategies surrounding that vision and engaging residents.

“We want to make sure that we have the type of housing that people can grow in, but also age in as well,” he said.

Residents seek better communication, transparency, responsiveness and, ultimately, the ability to be seen and heard, Simms said. Since he has taken on his role, Simms has listened to residents voice their concerns about transportation needs, access to fresh and healthy food and recreational activities.

“They’re not necessarily housing-related, but they impact their day-to-day lives,” he said.

For example, Norfolk Redevelopment and Housing Authority recently enlisted a shuttle service twice a week to four Norfolk communities to help residents with trips to the grocery store.

Another focus of Simms’ work is to help move residents forward in their economic mobility via the wealth of vocational and educational training and workforce opportunities in Hampton Roads.

“We serve a lot of people — from seniors to adults, young adults to children,” Simms said. “We want to make sure we are providing the services that help strengthen the household and help them move to a level of self-sufficiency.”

Ultimately, Simms said, the agency wants to help the people it serves achieve their dreams.

“I want people to have faith in the organization that deal with us every day,” Simms said. “We have a lot of work to do, but I think in a good way.”

Sandra J. Pennecke, 757-652-5836, sandra.pennecke@pilotonline.com

Almost six years later, the project has a new planned development partner and a much smaller scope. Gone is the enormous tower, replaced by plans for a modest five-story, 200-room hotel and minimum spending of at least $300 million, according to a new development agreement City Council members will vote on Tuesday.

Even so, Mayor Kenny Alexander said he believes the Pamunkey’s new partner Boyd Gaming has the track record and legitimacy to follow through on development, including financing the project to the tune of more than $500 million.

“We’re very confident in Boyd’s ability to exceed our expectations, and more importantly, be a great corporate citizen,” Alexander said.

Here’s how the proposals for the casino have changed over the years.

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Current plans call for scaled-back project

Design teams presented the current casino plans, backed by Boyd, to the Norfolk Architectural Review Board in August. They include:

• A 200-room, five-story hotel tower
• An at-least 935-space parking garage
• An outdoor pool and bar
• Restaurants, including a food hall with four or five restaurants; a sports bar and a steakhouse
• A fitness center and spa

Absent from the latest plans and the agreements is a marina on the Elizabeth River, which was shown in previous renderings.

However, the agreements would require casino developers to pay for part of two significant waterfront projects — up to $7.5 million for the southern portion of the downtown Norfolk seawall project and up to $562,000 to maintain the portion of the Elizabeth River Trail near the property.

The city documents reveal Boyd, a major Nevada gaming company with 28 properties in 10 states, is set to become the new majority owner of Golden Eagle Consulting, the company created by Yarbrough that oversees development. Under the new agreement, the Pamunkey Indian Tribe also would possess a 20% equity interest in the company.

It’s unclear from the documents whether Yarbrough would have a role in the new agreement. Alexander also didn’t know.

“I’ve never met him,” Alexander said about the billionaire backer. “I’ve never had a conversation with him on a telephone. I’ve never met him.”

Also removed from renderings is the name Golden Eagle previously used for the development: HeadWaters Casino and Resort.

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Significantly smaller than 2019 plan

The latest plans are smaller in scale than what was presented to the City Council in September 2019, about a year before Norfolk voters passed a referendum authorizing the casino. Those plans included:

• A $700 million price tag
• 500 four-diamond hotel rooms
• 3,500-4,500 slot machines and 100-225 table games
• A 750-seat entertainment venue and a spa
• 3-5 restaurants
• Roughly 6,500 parking spaces

Some city officials, including former City Manager Chip Filer, were skeptical of the tribe’s initial investment figures. In a December 2019 economic analysis, the city predicted the developers would only spend $375 million on the project. As recently as 2023, however, tribe officials said investment in the development would top $500 million and include at least 300 hotel rooms.

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Agreement includes minimum standards

The new development agreement, like the old agreement, comes with minimum standards that must be met. It requires a minimum investment of $300 million. Other minimum standards detailed in an option-to-purchase agreement include:

• A casino floor with at least 750 electronic gaming machines and 25 table games
• At least 150 hotel rooms, with a lobby bar, retail store and coffee shop
• Several food and beverage venues including a food hall, a sports bar and grill, and a fine dining restaurant and lounge
• A 500-seat “intimate showroom”
• A parking garage with at least 103 spots for Amtrak customers
• An outdoor function space
• A spa and fitness center

A 2019 agreement by the developer and Norfolk also includes similar minimum figures, such as 750 gaming machines, 25 tables and 150 hotel rooms.

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Timeline and construction phasing

One of the biggest hangups with the project has been the phasing of planned construction. An initial plan would have housed a temporary casino inside Harbor Park baseball stadium while the permanent structure was built. But that was scrapped after the city ran into statutory issues with using the location.

Developers later pitched a phased construction plan that built the casino first followed by the hotel and resort. But city leaders made clear they did not support the two-phase approach, and the design was pulled from review.

Alexander said, unlike the past proposals that included temporary gaming, he is confident Boyd can deliver on the whole project in a single phase.

Norfolk voters approved the casino construction in a 2020 referendum, which came with a five-year deadline. To meet that deadline for obtaining a state gaming license, Boyd plans to build a temporary casino at the site while construction for the permanent casino commences. The temporary casino would open in late 2025 and the permanent space in late 2027, according to a project timeline.

Norfolk City Council members will vote on the option-to-purchase agreement, development agreement and construction and use covenant Tuesday.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com

The black and white murals in the monochrome restaurant evoke the look of a coloring book in need of crayons. Everything at 2D Cafe & Eatery is outlined in black, including the wall design, ceiling tiles, sofas, stools and floors, to create cartoon vibes.

In June, Monica Kiraly and her husband, Ali Abay, opened the Instagrammable cafe on 11th Street and Atlantic Avenue. The couple owns three other Oceanfront businesses: Basil Pizza, 204 Pizza and La Dulce Vida.

Kiraly said she loves coffee shops and thought the Oceanfront needed more. So, when her husband went to a 2D cafe in Turkey and brought the creative idea back, Kiraly was sold. Her only concern was finding someone to the paint the 2D concept.

The couple hired two J-1 art students from Thailand to paint the design. The students took three weeks to complete the painting and worked on their days off from their housekeeping jobs at an area hotel. The State Department’s J-1 exchange visitor visa program enables international students to work seasonal jobs.

“I was a J-1 student myself seven years ago,” Kiraly said. “I knew the students coming to Virginia Beach had lots of potential and skills.”

Cafe menu items include Turkish dishes, coffee, iced lattes, boba drinks, bagels, salads, wagyu burgers and dumplings. Kiraly said the best sellers are the signature iced lattes such as Dulce de Coco (dulce de leche cream and coconut cold foam), Strawberry Bliss (strawberry puree, vanilla and strawberry cold foam) and Biscoffee (Biscoff cream, vanilla and cold foam).

Cig kofte, or small and spicy bulgur wheat meatballs, is one of the most popular Turkish dishes. Turkish desserts include baklava, custards, “burnt” cheesecake and others.

The cafe is very active on Instagram and gets tagged frequently. Within the first month, a customer asked to have a photo shoot at the location.

“Most of our customers come because of the 2D concept,” Kiraly said. “We want to keep them happy with the good food, not just the cool design.”

Lee Belote, jlbelote@verizon.net

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If you go

What: 2D Cafe & Eatery

Where: 1102 Atlantic Ave., Virginia Beach

Info: 2dcafe.com