Surprise! After years of rising office vacancy in hampton roads, a rare dip other notables [Virginian – Pilot]

The office market in Hampton Roads has gotten a bit of a boost during the past few months, according to a recent report.

The vacancy rate for offices fell slightly to 17.6 percent, according to a quarterly report from commercial real estate company CB Richard Ellis. The rate had been trending up for a few years.

Companies leased an extra 56,659 square feet of space during the first quarter of the year, helping to bring down the vacancy rate, according to the report. Despite the extra leasing activity, the vacancy rate remains higher than the 15.2 percent rate during the same time last year.

And recent news suggests the rate could continue to fall. Virginia Beach-based health insurer Amerigroup Corp. announced last week that it had leased 315,000 square feet in the former regional headquarters of the United Services Automobile Association, near the intersection of Northampton Boulevard and North Military Highway in Norfolk.

- Josh Brownaward from bank

Beach payroll firm wins public vote

Payday Payroll Services, a 27-year-old Virginia Beach company, has won the 2012 Top Flight Award from Monarch Bank, taking home a prize of cash and services worth $50,000.

Monarch received 53 applications for the award this year. Its judges trimmed those to three semifinalists - including Taste Unlimited, the chain of six gourmet food and wine shops, and SteelMaster Buildings, which manufactures steel and metal prefabricated structures.

The bank asked the public to vote, like they do for contestants on the television show "American Idol," for their favorite semifinalist via text or online during April.

Payday Payroll won $10,000 cash from the bank; $10,000 in services from accounting, tax and advisory firm Cherry, Bekaert & Holland; a business package worth $10,000 from Cox Business Communications; $10,000 in advertising services from Cox Media; and a $10,000 advertising contract with Pilot Media, the division of Landmark Media Enterprises that includes The Virginian-Pilot.

Payday Payroll, founded in 1985, handles payroll and other human resources functions for corporate and nonprofit clients nationwide.

Monarch Bank announced the winner at its annual meeting Thursday.

- Carolyn Shapiro

diet chain

Weight watchers opens two new sites

Weight Watchers opened two new Hampton Roads stores Saturday featuring its new retail design.

The new stores - at 801 Volvo Pkwy. in Chesapeake and 3762 Virginia Beach Blvd. in Virginia Beach - allow would-be dieters to stop in anytime to learn about the program, purchase memberships and shop for Weight Watchers products. Members also can do their weekly weigh-in at the stores.

Weight Watchers plans to open hundreds of stores with its new design, which it describes in a news release as "a contemporary, yet welcoming and comfortable environment," this year.

- Carolyn Shapiro

ODU club event

Fed president explains interest-rate stance

Jeffrey Lacker has been the lone dissenter in recent Federal Reserve meetings. During a speech Wednesday in Norfolk, he explained why.

At the past three meetings of the Federal Open Market Committee - the most recent was April 25 - Lacker, the president of the Federal Reserve Bank of Richmond, cast the only opposing vote among the 10 voting members on the key interest rate decision.

The target for the so-called federal funds rate, the interest rate that banks charge one another for overnight loans, is close to 0 percent. The Fed's recent statements have said that "economic conditions ... are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014."

"I didn't think that economic conditions were likely to warrant low interest rates all the way through 2014," he said. "My projection is that if we want to keep inflation around 2 percent, we will need to raise rates in 2013." Lacker spoke to about 120 people who attended a luncheon sponsored by the Old Dominion University Economics Club of Hampton Roads at the Sheraton Norfolk Waterside Hotel.

Lacker, however, spoke strongly in favor of another trend at the Fed in response to a question.

He said he supported its recent efforts to release more data to the public. "We owe the American people all the information we can provide them," Lacker said. "I tilt towards more education and more information."

- Philip Walzer

economic standing

State ranked best for development

Virginia is tops in the country for economic development, according to rankings released in this month's issue of Site Selection magazine.

"The Virginia Economic Development Partnership and Governor Bob McDonnell have demonstrated that a pro-business, get-the-word-out strategy coupled with a predictable, low-tax business climate result in a competitive edge that is quantifiable," wrote the magazine's editor-in-chief, Mark Arend. Site Selection is published by the Industrial Asset Management Council.

Ohio was ranked second for 2011. In the previous rankings, for 2010, Virginia came in second.

In a news release last week, McDonnell's office credited "a great team that is taking a very aggressive approach to economic development."

- Philip Walzer

urban vintner

Mermaid Winery pops cork on Ghent store

Mermaid Winery, which bills itself as Virginia's only urban winery, opened last week in the Ghent section of Norfolk.

For now, the winery sells six wines with the Mermaid label, all made at Horton's Vineyards in Orange County, said Mermaid's owner, Jennifer Doumar. They include a chardonnay, cabernet franc and two locally named fruit wines, East Beach Peach and Elizabeth River Raspberry.

A tasting for a "flight" costs $6.50, Doumar said. The bottles cost $15 to $25 each.

Mermaid Winery also offers appetizers, cheese plates, salads and "fun sandwiches," she said.

Doumar said she expected that Mermaid, which is on 22nd Street behind a AAA office, will start selling wine produced on the premises this week. "You'll know when you come in and smell wine."

The first local varieties will be a Pinot noir, Riesling and sauvignon blanc, she said.

- Philip Walzer

tech deal

Beach company buys phone service firm

Knowledge Information Solutions Inc., a technology company based in Virginia Beach, announced last week that it had acquired DingleVoice, a cloud phone service provider, also based in Virginia Beach.

The terms of the deal were not released.

DingleVoice's clients are primarily small and medium-sized businesses.

- Philip Walzer

museum

New nauticus exhibit highlights the port

"Our Mighty Seaport," an interactive exhibit that helps explain the workings of the port of Hampton Roads, is open at Nauticus in Norfolk, with an official launch planned for May 16.

"As you drive down the street, you see containers every day," said Stephen Kirkland, a Nauticus executive. "We want to allow residents to learn how the port affects their daily life."

The exhibit includes a Moran tugboat simulator, allowing families to experience what it's like navigating a tug down a busy waterway, and "real-time" information on ships as they sail by on the Elizabeth River.

A Norfolk Southern exhibit focuses on its "Heartland Corridor," providing faster double-stack train service between the port and the Midwest; a video shows children how nautical charts help mariners; other exhibits explain how imports and exports connect the region to destinations all over the world and what a "TEU" is, the standard 20- foot shipping container and its importance to global trade.

"For us, it's more than an exhibit," Kirkland said. "It sets up the first impression of the museum."

- Robert McCabe

Portsmouth

Nominees sought for business awards

The Portsmouth Department of Economic Development is seeking nominees for its Best in Business Awards.

The department bestows awards in three categories: Spirit of the City, for fostering the city's image as a good place to do business; Community Steward, for participating in community activities; and Environmental, for operating in a way that benefits the environment.

Nominees must be located within the city and operate under a current business license.

The nomination period continues through May 15. Nominations should name the business and the award category and explain why the business deserves an award. People can send nominations to [email protected] or call 393-8804.

The department plans to announce the winners at its annual Business Appreciation event, at a date still to be determined.

- Carolyn Shapiro

expansion

Davenport & Co., a Richmond-based investment company, recently opened an office in Suffolk at 330 W. Constance Road, Suite 200. David Love, senior vice president-investments, will operate his financial practice from the office.

Jimmy John'sGourmet Sandwich Shops has opened a location at Peninsula Town Center in Hampton. Steve and Deloris Chaplin and Brian and Cheryl Olson of Tidewater JJ LLC own the franchise, which is their first for the submarine sandwich company. Jimmy John's has four locations in South Hampton Roads.

real estate

GEORGE: George Street Corp. spent $3.35 million to buy a building and roughly 5 acres of land at 3443 Virginia Beach Blvd., S.L. Nusbaum Realty Co. reported. The property was purchased from Wiley Properties LLC.

COLD: FreezePop LLC spent $3.1 million to buy a 145,530-square- foot cold storage and dry warehouse in Suffolk from Nansemond Cold Storage Company Inc., S.L. Nusbaum Realty Co. reported. The property is located at 190 County St.

opening

DEERE:

East Coast Equipment opened its new John Deere tractor dealership at 1769 S. Military Hwy. in Chesapeake last month. The location replaces the former Hobbs Implement Co. store at 1000 Great Bridge Blvd.