The combined markets of Norfolk, Richmond, and South Shenandoah Valley consist of over 140 million square feet of big box properties 100,000 square feet and larger. The Port of Virginia (POV), currently the third-largest container port by TEU volume on the East Coast, provides a convenient and efficient connection between the eastern regions of the United States and the global supply chain.
Vacancy rates in the combined markets compressed to record lows during the second half of 2021 with a combined vacancy rate of 2.5%. Nearly 6 million square feet of positive net absorption has posted in the past 12 months, with the second half of the year contributing 5.5 million square feet to this. Demand for industrial product is at all-time highs, and until additional speculative product can deliver, current market conditions will persist. Asking rents in the combined markets grew to an average of $5.00 per square foot, an increase of 10.5% year over year.