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Demand Shifting Towards Flexible Office Space

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Norfolk Office Q3 2020 Marketview

> Norfolk’s vacancy rate increased slightly during Q3 2020, ending the quarter at 11.5% after the market saw 89,908 square feet of negative net absorption during the quarter.  This vacancy rate is 61 bps (basis points) higher quarter-over-quarter and 133 bps higher year-over-year.  The vacancy rate may continue to rise in the near-term as the economy continues to recover from the shutdowns due to COVID-19.

> Average asking rents increased slightly in Q3 2020, ending the quarter at $20.07, an increase of $0.06 quarter-over-quarter and $0.15 year-over-year.

> Leasing activity remained strong during Q3 2020, as there were 215 leases signed during the quarter totaling 717,319 square feet.

> Sublease space has become more prevalent since the pandemic began, with 84,673 square feet of vacant sublet space available to end Q3 2020.  This is a 35.8%increase of 22,341 square feet since the end of Q1 2020, when the effects of the pandemic first began being felt.

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Demand Shifting Towards Flexible Office Space

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Related Experts

Persifor Frazer

Executive Vice President

Norfolk - Main

Executive Vice President and Principal, Perry Frazer has over 22 years of commercial real estate experience. Perry was named the Managing Director of the Hampton Roads office in 2014. As Managing Director, Perry manages all aspects of local business to generate and maintain maximum profitability. The emphasis is on integration of a variety of service lines for new business development and growing market share. Perry guides real estate managers, sales professionals, and the office manager in client relations, service orientation and consulting role as well as the effective and efficient operation of its office and accounts.

He has been a top ten regional producer every year since 2002 and over the past 15 years Perry has leased approximately 20 million square feet in the Hampton Roads market. Perry represents institutional Landlords in the Hampton Roads markets and has established himself as one of the leading office and flex brokers in the region. He has completed numerous large tenant representation assignments over the past five years.
 
Perry has earned the distinction as one of the leading brokers in Hampton Roads and one of the leading brokers in the entire Hampton Roads organization.

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Chad Braden

Research Analyst

Norfolk - Main

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