Armada Hoffler Announces 12,000-Square-Foot Atlantic Union Bank Lease at Town Center of Virginia Beach

Rhea-AI Summary

Armada Hoffler (NYSE: AHH) announced on Oct. 29, 2025 that Atlantic Union Bank signed a full-floor lease for approximately 12,000 square feet at One Columbus Center in Town Center of Virginia Beach.

The lease immediately backfills recently available space at a nearly 7% spread over the prior tenant’s lease and brings Armada Hoffler’s Town Center office portfolio to 99% leased. Divaris Real Estate represented the landlord; Cushman & Wakefield Thalhimer represented the tenant.

Positive

• 12,000 sq ft full-floor lease signed
• Immediate backfill at a nearly 7% rent spread over prior lease
• Town Center office portfolio now 99% leased

Negative

• None.

Insights

Commercial Real Estate Analyst

Armada Hoffler secured a 12,000 sq ft full-floor lease, driving Town Center occupancy to 99% and capturing a ~7% rent spread.

The lease places Atlantic Union Bank into a Class A building at One Columbus Center, immediately backfilling available space and improving cash flow visibility for Armada Hoffler. The reported nearly 7% spread over the prior tenant’s lease implies higher revenue per square foot on that module and supports the landlord’s stated rent momentum.

Key dependencies include lease term length, tenant credit quality, and any concessions or TI obligations not disclosed here; those factors affect near-term cash receipts and long‑run net operating income. The transaction reduces vacancy risk by moving the office portfolio to 99% occupancy, which materially lowers absorption uncertainty for the Town Center asset pool.

Watch for the disclosed lease commencement and term details and any capital allowance disclosures in upcoming reports; these items will clarify the immediate cash impact and GAAP recognition timing within the next several quarters. Confirmation of tenant credit strength and lease duration will determine whether this is a transitory revenue bump or a sustained earnings improvement.

New lease immediately backfills space and brings Town Center office occupancy to 99%

VIRGINIA BEACH, Va., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) today announced that Atlantic Union Bank has signed a full floor lease for approximately 12,000 square feet at One Columbus Center, located in the heart of Town Center of Virginia Beach. The new lease represents an immediate backfill of recently available space at a nearly 7% spread over the prior tenant’s lease. Armada Hoffler’s office portfolio at Town Center is now 99% leased.

“Atlantic Union Bank’s decision to establish a significant presence at One Columbus Center further underscores Town Center of Virginia Beach’s position as the premier business address in the Hampton Roads region,” said Shawn Tibbetts, President and CEO of Armada Hoffler. “We continue to see companies relocating to Town Center of Virginia Beach to benefit from the energy and convenience of a true mixed-use environment. The immediate backfill of this space and our continued ability to grow rents demonstrates the strength of demand for high-quality office space in Town Center of Virginia Beach and the enduring appeal of our mixed-use strategy.”

Atlantic Union Bank will join a diverse mix of professional, financial, and technology firms that have made Town Center their home. Located within Armada Hoffler’s Town Center portfolio, One Columbus Center is a Class A office building offering convenient access to dining, retail, entertainment, and residential options. This vibrant mixed-use district is designed to foster a true live-work-play environment, creating a dynamic setting for employees and clients alike.

For more than two decades, Armada Hoffler has partnered with the City of Virginia Beach to create and continually enhance Town Center of Virginia Beach, a vibrant destination that serves as the City’s downtown core.

Divaris Real Estate represented the landlord in the transaction, and Cushman & Wakefield Thalhimer represented the tenant.

About Armada Hoffler

Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.

Contact:

Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248

FAQ

What did Armada Hoffler (AHH) announce on Oct. 29, 2025 about Atlantic Union Bank?

Armada Hoffler announced a 12,000 sq ft full-floor lease at One Columbus Center signed by Atlantic Union Bank.

How does the Atlantic Union Bank lease affect Armada Hoffler's Town Center occupancy for AHH?

The lease increases Town Center office occupancy to 99% leased for Armada Hoffler.

What rent change did Armada Hoffler report for the new AHH lease at One Columbus Center?

The new lease was signed at an immediate backfill at a nearly 7% spread over the prior tenant’s lease.

When and where is the leased space for Atlantic Union Bank under AHH located?

The leased full-floor space is approximately 12,000 sq ft at One Columbus Center in Town Center of Virginia Beach, announced Oct. 29, 2025.

Who represented the parties in the Atlantic Union Bank lease for Armada Hoffler (AHH)?

Divaris Real Estate represented the landlord and Cushman & Wakefield Thalhimer represented the tenant.