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Norfolk Industrial Market Report | Q4 2021

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Speculative development picks up as the Norfolk Industrial Market ends 2021

“After decades of tepid demand, the Hampton Roads industrial market continues to experience extreme pressure with regards to availability and rapidly escalating prices. While the large bay, institutional grade properties command the most attention, this trend affects all levels of the industrial market to include the small building, owner-user market. Recent offerings have received multiple full-price offers and even in-excess of list price offers.”
Ken Benassi | Senior Vice President

Key Takeaways:

  • Vacancy rates continue tightening to historic levels as space is occupied throughout the market at a rapid pace, evidenced by a 0.9% vacancy rate to end 2021. Quality warehouse space is becoming especially difficult for potential tenants to find, as the market is currently showing 0.6% vacancy. This lack of available space has created an extremely owner-favorable market, allowing landlords to hike up rents and provide less incentives to tenants, which will continue until more product is added to the market.
  • The market has seen a large amount of tenant interest, as evidenced by over180 users looking for almost 14 million square feet of space in the market,
    including approximately 40 tenants looking for large spaces of 100,000 square feet and up. An increase in demand from third-party logistics firms, retailers, and port users has been especially prevalent in recent quarters.
  • There are currently ten properties under construction in the Norfolk market totaling almost 1.8 million square feet. Out of the product under construction, seven properties totaling almost 1.4 million square feet are speculative product, while three properties totaling over 400,000 square feet are build-to-suit (BTS) product.

 


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Norfolk Industrial Market Report | Q4 2021

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Related Experts

Lang Williams

Executive Vice President

Norfolk - Main

With twenty-four years of commercial real estate brokerage experience, Lang specializes in helping companies, large and small, reduce their real estate occupancy costs. Since 2009, on behalf of his clients, Lang has achieved over $61 million in savings on 303 completed tenant representation assignments, in 59 cities located in 42 metropolitan regions, 6 countries and 3 continents, of which 84% of assignments were with repeat clients. During his career Lang has completed 652 assignments totaling over $833 million in consideration. His clients range from government contractors, logistics companies and professional services firms with a single location seeking a lease renewal versus relocation analysis, to Fortune 100 and public sector clients seeking strategic consulting, site selection, portfolio management, and real estate services for their global operations. In addition, he serves select developers and investors on land acquisitions, leasing, and property dispositions.

Lang continually strives for improvement in service, capabilities, and knowledge. During his career, he has earned his MBA from the University of Denver’s Daniels College of Business, attained the LEED AP designation, and earned the SIOR designation (Society of Industrial and Office Realtors®). Lang keeps current with best practices and trends by attending real estate and other industry conferences as well as through active participation in various industry associations. As founder and co-chair of the Hampton Roads LogistXGames, Lang has helped raise nearly $430,000 in support of scholarships at local community colleges to help train and develop the Norfolk logistics workforce. Recognized as an industry leader, Lang has presented at the Old Dominion University E.V. Williams Center for Real Estate Market Review, the Virginia International Trade Conference, and The Port of Virginia Port Real Estate Conference, among others.
 

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Ashton Williamson

Executive Vice President

Norfolk - Main

Ashton Williamson, a Hampton Roads native, has worked full time in the commercial real estate industry in Hampton Roads since 1987. Prior to entering sales and leasing in 1995, Ashton was a certified general commercial real estate appraiser licensed in Virginia and North Carolina. He earned the MAI designation with the Appraisal Institute in 1995. 


Since 2010, Ashton has been involved in over 500 transactions with the Industrial Team with a total in excess of 40 million sq. ft. leased/sold. Ashton’s specialties range from General Brokerage with focus on industrial and free-standing commercial properties, to providing experienced representation with land, office/flex, and industrial properties throughout Eastern Virginia and beyond.

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Ken Benassi

Senior Vice President

Norfolk - Main

Ken Benassi has over 20 years experience in the local commercial real estate industry negotiating the acquisition or sale and lease of industrial and commercial properties throughout Hampton Roads. Prior to entering commercial real estate, Ken worked in the industrial gas and welding supply industry where he was trained in “Client Focused” sales and service. This client focus has differentiated Ken and has allowed him to develop strong client relationships as evidenced by the multiple transactions he has been affective for many clients. Whereas many commercial real estate agents focus on a product type, Ken focuses on the client relationship. Ken’s core competency is assisting clients in solving complex real estate issues.

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Worth Remick

Senior Vice President

Norfolk - Main

Worth Remick has 35 years of experience in industrial leasing, sales, development and tenant/buyer representation. He has leased or sold over 29 million square feet of industrial, flex and office properties. He is a member of the Society of Industrial and Office Realtors (SIOR) and has focused on port logistics, defense contracting, food manufacturing and distribution, and maritime developments. Worth has been a long-time member of the Hampton Roads Association for Commercial Real Estate (HRACRE), and has been involved in numerous charitable organizations, such as South Hampton Roads Habitat for Humanity where he spent 13 years on the Board of Directors, his church’s Vestry and Winter Shelter, and on the Boards of Green Run Collegiate, Virginia Beach Community Development Corporation, and Virginia Beach Vision. He received his degree in Humanities from Hampden-Sydney College where he was a member of the tennis team for 4 years.

Much of Worth’s focus is on representing owners who desire to obtain tenants/buyers or who want to maintain or increase the value of their holdings. His experience through the years, during both strong and weak markets, provides him and his clients with the proper perspective and marketing tools to create, realize and maintain value. He also has worked as Tenant and Owner Representative for Smithfield Foods, Ferguson, Dollar Tree Stores, IMS Gear, and Katoen Natie (KTN). A native of the region, Worth is very familiar with the geography, business climate, and regional economic engines (port/trade and defense contracting) and has numerous contacts to assist him with his daily work.

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Chamie Burroughs

First Vice President

Norfolk - Main

Chamie Burroughs has over 18 years of experience in the commercial real estate industry.  For the first six years, Chamie was responsible for managing and directing the operation of over 500,000 square feet of retail and office property.  Since 2006, Chamie has worked full-time in Industrial Sales, leasing and tenant/buyer representation.  
 
As an Industrial leasing and sales specialist, he focuses on representation and advisory services for tenants, landlords, buyers, sellers and investors of commercial real estate.  Chamie’s in-depth knowledge of the Industrial market in Southeastern Virginia builds on his hard work and dedication to the Colliers | Virginia Industrial Services Team.  Chamie is dedicated to teaming his hard work ethic with all the  Industrial platform resources, to provide first-class service to his clients, through all phases of real estate transactions, exceeding expectations. 

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