The Rise of Industrial Condominiums: A New Chapter in American Manufacturing Space

By Eric S. Cavallo, Editor-in-Chief

Hampton Roads Construction News Network

In markets once dominated by sprawling single-tenant warehouses, a new model of industrial ownership is quietly reshaping America’s commercial landscape: the industrial condominium. From California’s Antelope Valley to Virginia’s port corridor, developers and small manufacturers alike are rediscovering the economic logic of ownership over perpetual leasing—a shift that signals both entrepreneurial confidence and structural change in how the nation builds and distributes.

The premise is simple but revolutionary. Industrial condominiums divide large warehouse or flex-industrial buildings into smaller, deeded units—spaces that can be owned rather than rented. For local contractors, machinists, fabricators, and logistics companies, that means a predictable mortgage instead of escalating rents—an appreciating asset instead of a sunk cost. What began as a post-recession niche in western states has become a nationwide trend, driven by e-commerce demand, post-COVID reshoring, and the chronic scarcity of light-industrial inventory in metro markets.

Developers such as Cypress Palmdale L.P. in California and regional players in Virginia’s Tidewater corridor have shown that these projects can thrive when planned with precision. The model favors flexibility: shared infrastructure, modern loading docks, and utility specifications that accommodate diverse tenants. In many cases, design teams are merging Class A standards—tilt-wall concrete, 28-foot clear heights, and advanced fire protection—with the scale of ownership previously reserved for small business parks. The result is a product that feels custom-built for a new generation of owner-operators.

In Hampton Roads, where maritime logistics, defense manufacturing, and green-tech fabrication converge, industrial condos could become a defining asset class of the next decade. As land values rise and vacancy rates tighten, the ability for small enterprises to purchase their own workspace near major corridors—Interstate 64, Route 58, or the Port of Virginia—offers a tangible path to economic permanence. Local builders note that every square foot sold becomes a foothold for long-term reinvestment, not just a line item in someone else’s portfolio.

Yet the model’s expansion is not without hurdles. Industrial condominium developments must navigate complex zoning overlays, shared-use easements, and evolving interpretations of subdivision law. Municipalities accustomed to single-owner sites are learning to regulate multi-title industrial projects—an adjustment that requires coordination between planning departments, building officials, and legal counsel. Financing, too, demands a tailored approach: lenders must underwrite not only construction costs but also the unique association structures that govern maintenance and insurance.

Still, the macroeconomic drivers are difficult to ignore. The shift toward near-shoring and regional manufacturing has reignited demand for smaller, technologically adaptable spaces. At the same time, federal investment in infrastructure and supply-chain resilience is creating downstream demand for fabrication and logistics staging sites. Industrial condominiums answer both needs—offering equity ownership for the small-scale fabricator and stable, diversified absorption for the developer. The model is being quietly tested in Norfolk, Suffolk, and Chesapeake, where port-proximate zoning and shovel-ready tracts make the economics viable.

Critics contend that the condominium form complicates future redevelopment, locking land into fragmented ownership that can stymie consolidation. Supporters counter that local ownership promotes accountability, upkeep, and community continuity—qualities often missing from absentee-held industrial parks. In an age when regional economies crave resilience, the ability of local business owners to control their physical footprint may outweigh the potential drawbacks of long-term parcelization.

The broader narrative is unmistakable: industrial condominiums are transforming the relationship between small business and industrial real estate. As national builders eye the Hampton Roads market, local planners will need to decide how to integrate this hybrid asset into comprehensive plans that balance growth, mobility, and environmental stewardship. Done right, industrial condos could anchor a new era of distributed manufacturing—one that keeps ownership, opportunity, and prosperity rooted at home.

About HRCNN

The Hampton Roads Construction News Network (HRCNN) is a regional publication dedicated to delivering accurate, timely, and in-depth reporting on the people, projects, and policies shaping Virginia’s built environment. From zoning and infrastructure to code reform and commercial development, HRCNN provides trusted, independent coverage for builders, planners, and civic leaders across Hampton Roads and the Commonwealth.

Pembroke Mall Transforms into Pembroke Square: A New Chapter for Virginia Beach

By HRCNN – Hampton Roads Construction News Network Managing Editor

The redevelopment of Pembroke Mall into Pembroke Square marks one of the most ambitious urban renewal projects Virginia Beach has seen in decades. Long known as a central retail hub, the site is now being reshaped into a mixed-use destination that combines housing, office, hospitality, and community amenities—all designed to meet the needs of a growing and evolving city.

At the heart of this transformation is Core 22 Design Build, the Virginia Beach–based firm entrusted with bringing the vision to life. Founded with a commitment to delivering high-quality, locally grounded projects, Core 22 has steadily built a reputation for combining innovative design with deep knowledge of regional development patterns. The firm’s role at Pembroke Square underscores its growing importance in shaping the urban fabric of Hampton Roads.

The project will introduce a blend of uses that go well beyond retail. Plans call for new residential units, modern office space, dining, and a hotel component—creating a 24/7 environment that supports both economic vitality and community engagement. For Virginia Beach, Pembroke Square is intended not only to replace the aging mall but also to anchor the broader Town Center district as the city’s signature urban core.

City leaders have framed the project as a model for future redevelopment efforts. By transitioning from single-purpose retail toward a mixed-use framework, Pembroke Square reflects national trends in commercial real estate while responding to local demand for housing, walkability, and sustainable infrastructure. The shift also signals how municipalities are rethinking suburban commercial corridors to meet 21st-century needs.

Core 22’s involvement ensures that the project is not simply about construction, but about long-term community integration. With a track record in residential and commercial development, the firm brings expertise in both vertical building and local site considerations—from zoning compliance to stormwater management. Their approach positions Pembroke Square as more than a redevelopment; it’s an investment in a resilient, livable future for Virginia Beach.

The economic impact of Pembroke Square is expected to be significant. Beyond the immediate construction jobs, the project will generate ongoing employment through retail, office, and hospitality operations. It also promises to expand the city’s tax base, contributing to infrastructure and services that benefit residents across Virginia Beach.

As Pembroke Square takes shape, it embodies a larger story unfolding in Hampton Roads: the reinvention of aging spaces into mixed-use anchors that support both growth and sustainability. With Core 22 Design Build at the helm, this redevelopment represents not just a new chapter for Town Center but a blueprint for how cities across Virginia can navigate the challenges—and seize the opportunities—of modern urban development.

About HRCNN The Hampton Roads Construction News Network (HRCNN) provides independent coverage of infrastructure, housing, zoning, and environmental policy across Virginia. By highlighting the intersection of local development and national trends, HRCNN delivers fact-driven reporting for industry professionals, policymakers, and the communities they serve.

Adaptive Reuse in Virginia: A Regulatory Framework for Reviving Retail Sites

By Eric S. Cavallo
Virginia Licensed Contractor (Commercial Building); Board Member, Virginia Beach Board of Zoning Appeals; Advisor, Virginia DHCD – Single‑Stair Exit Reform Stakeholder Committee; International Code Council (ICC) Member; Founder & President, Earthly Infrastructure®

The decline of regional shopping malls across the Commonwealth has introduced a complex land use dilemma for municipalities, planners, and policymakers. Once considered cornerstones of suburban economic development, many of these properties now stand largely vacant, structurally outdated, and commercially obsolete. However, their location, scale, and infrastructure access position them as high-potential candidates for adaptive reuse—if approached through a framework of legal clarity, regulatory flexibility, and long-term community value.

Adaptive reuse, in this context, is not limited to architectural retrofitting. It encompasses the comprehensive reclassification of land use purpose, including the integration of mixed-income housing, municipal services, civic space, and environmentally resilient infrastructure within sites previously designated for single-use retail. Such conversions require thoughtful zoning interpretation, updated comprehensive planning language, and in many cases, negotiated variances to enable economically feasible and legally compliant redevelopment outcomes.

Virginia’s Uniform Statewide Building Code (USBC) and local zoning ordinances can either inhibit or facilitate these efforts depending on the jurisdiction’s posture toward reclassification, density allowances, and parking requirements. Municipalities seeking to lead in this area may consider adopting overlay zones or special exception pathways that support flexibility while preserving core safety, access, and land use compatibility standards. Additionally, state-level incentives—such as Industrial Revitalization Fund (IRF) grants—may offer valuable financial support when paired with public-private implementation agreements.

From a governance standpoint, transparency in permitting, clearly defined site plan review procedures, and early interdepartmental coordination are essential. Localities must balance the interests of economic development with long-term land use resilience, ensuring that reactivated mall sites serve broader public objectives. Successful projects are those that integrate transportation connectivity, code compliance, and meaningful community benefit—whether through affordable housing units, public space commitments, or green infrastructure performance.

Ultimately, the adaptive reuse of Virginia’s vacant malls is not simply a design challenge—it is a test of public leadership, legal adaptability, and professional resolve. As demographic patterns shift, greenfield development diminishes, and infrastructure costs escalate, the value of repurposing these properties becomes both practical and imperative. What becomes of these spaces will reflect not only local economic priorities, but also our collective capacity to govern with foresight. Communities that approach this process with legal precision, policy clarity, and long-term public interest in mind will not just reclaim space—they will redefine it for generations to come.