Manassas retail vacancies are at historic lows, while Micron expansion advances

On Wednesday, January 19, the Prince William Chamber of Commerce held a Future of the Region event featuring representatives from Prince William County and the cities of Manassas and Manassas Park. This article is the first in a series of posts about the event.

Manassas continued to grow during the pandemic.

The city’s retail sector saw the most significant gains, many of which occurred in the last quarter of 2021. Since peaking at more than 7 percent in late 2020, the city’s vacancy rate for retail space dropped to nearly 4 percent in December.

The lower number represents the second-lowest rate over the last 10 years. Correspondingly, market rents increased by 3.8% year-over-year, ending at an average of $24.17 per square foot.

“Five years ago, 10 years ago, 20 years ago, this was not the case,” said the city economic development director Patrick Small.

One highlight includes the opening of the Salisbury Event Center in an old movie theater space on Mathis Avenue. In addition to performances and events, the Salisbury Event Center offers the community an accessible and affordable alternative to holding private events outside the city.

It was not all roses in the city’s downtown in 2021. Okras, which served New Orleans fare for nearly 25 years on the corner of Center and Battle Streets, closed its doors in December.

PLN interviewed owner Charles Gilliam about his plans to close the business, which survived the pandemic by pivoting to fill curbside orders, but struggled to find employees willing to work.

Outside downtown, the city’s airport continues to be a center of growth.

“We’ve seen growth at the busiest general aviation airport in the Commonwealth of Virginia, the Manassas Regional Airport, with companies like Apt Jet, and most recently Chantilly Air, as well as Aurora expanding here,” said Small.

Last month, the city issued its first occupancy permit to computer chip maker Micron, which is in the middle of a $3 billion expansion of its Manassas plant — the most significant public-private investment in modern Virginia history.

With a population of 43,000, the independent city sits within 10-square miles near the center of Prince William County. Small also touts the city’s proximity to nearby Fairfax County as a plus for drawing new businesses and tourists to what he calls the Greater Manassas Region.

“Our growth is constrained by our geographic boundaries and the fact that there isn’t a lot of developmental real estate in the city,” said Small. “Our bread and butter, and what we really focus are on our existing businesses and industries, as well as smaller office users and government contracts. That growth will continue, and steady tourism…is up.”