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KPMG's Armada Hoffler Tower Lease Brings Jobs, Added Stability to City's Office Market

Lease of the Year for Hampton Roads, Virginia

Armada Hoffler Tower was built in 2002 as part of the Town Center of Virginia Beach. (CoStar)
Armada Hoffler Tower was built in 2002 as part of the Town Center of Virginia Beach. (CoStar)

One of the largest audit, tax and advisory firms in the world signed a lease for a new office in Virginia Beach, Virginia, a move that will keep jobs in Hampton Roads while underscoring the appeal of amenities, walkability and easy access to retail as property owners scramble to secure tenants that are reevaluating their office needs amid economic concerns and extended remote and hybrid work policies.

KPMG finalized a deal with Armada Hoffler just before the end of the year to take 13,044 square feet at the real estate company's namesake tower and corporate headquarters within Town Center of Virginia Beach, a public-private, mixed-use development that is considered the city's urban commercial center.

“We continue to see demand for core mixed-use communities as top destinations for class A companies," Louis Haddad, president and CEO of Armada Hoffler, said in a release at the time of the deal. “This new lease underscores the strength of our diversified approach and desirability of mixed-use environments."

Considered one of the Big Four accounting firms, KPMG is expected to retain more than 160 jobs as it shifts its Norfolk office to Armada Hoffler Tower in a deal that also brings the 23-story high-rise to 98% leased.

In recognition, the deal received a 2024 CoStar Impact Award for lease of the year in Hampton Roads, as judged by an independent panel of local industry professionals.

About the Deal: KPMG's lease is on the 15th floor of the Armada Hoffler Tower building, which includes 324,000 square feet of office space, 38,500 square feet of street-level retail space and a nine-story parking garage. Other office tenants in the building include Cushman & Wakefield, Mass Mutual, consulting firm Cherry Bekaert, Morgan Stanley and law firms Troutman Pepper, Williams Mullen and Pender & Coward. Six of the building’s office tenants have been in the building since its opening. Retail tenants include P.F. Chang's, Madewell, Lululemon and Cold Stone Creamery, as well as the private Town Center City Club.

What the Judges Said: The impact is significant, e.g., 160 employees being located to the leased space," said Ken Kahn, dean of the Strome College of Business and a professor at Old Dominion University.

They Made It Happen: Rob Wright and Patrick Murphy of Cushman & Wakefield | Thalhimer, and Michael Divaris, Vivian Turok and Krista Costa of Divaris Real Estate, brokered the lease.

CoStar Market Manager Christian Taylor contributed to this report.