As the center for commercial activity and entertainment in the area, business locations in Historic Downtown are perpetually in high demand. 2022 was no exception with strong leasing activity and a number of ongoing construction projects highlighting a shortage of office and retail product in the City’s central business district.

2022 saw over 16,000 square feet of new leases signed in the Historic Downtown area, ending the year with just 1.4% of commercial property currently available. Inventory of retail and dining space in Downtown is particularly tight with new businesses like Benny Capalago’s opening next to the Harris Pavilion, Haven Arts, Christa Health and Wellness, and others leaving retail in Downtown with an effective 100% occupancy rate. Correspondingly, retail asking rents rose during 2022 by 6%, ending the year at $25.86 per square foot.

The success of Downtown’s retail and dining is bolstered by the future completion of several redevelopment projects nearby, including the Harris II building on Battle Street (an under construction mixed-use building with new ground floor storefronts and upstairs apartments), Van Metre’s 230+ unit single-family and townhome development on Grant Avenue expected to begin in 2023, and the 105 new homes part of the Jefferson Square project on Prince William Street – all of which will attract new families and residents to very walkable neighborhoods in the Downtown area.

Office lease activity in Downtown also remained strong during 2022 with new leases pushing office occupancy to 97.5%. Notable office leases include First Care Women’s Health renovating a 5,000 square foot clinic at the corner of Center Street and Grant Avenue, North American Veterinary Blood Bank opening on Main Street, and the City staff relocations from ongoing renovations at City Hall, the Manassas Museum, and the completion of the new Public Safety Building. Market rent rose slightly over the year as well, ending December at $25.54 per square foot (up 2.8% from Dec. ’21).

Manassas City HUBZone to Expand July 1st

The federal HUBZone in Manassas will renew its designation and expand this summer to include a large portion of Downtown and areas south in the City. Businesses located in the federally designated HUBZone are eligible for significant advantages in government contract awards and set-asides. In Manassas, the HUBZone will now cover areas south of Center Street in Downtown from Fairview Avenue to Wellington Road (see above and official HUBZone map here). View available property or contact us to find a HUBZone business location that meets your needs, including virtual and coworking options like CenterFuse in Historic Downtown Manassas.