The Norfolk Industrial Market Continues Thriving, With Positive Trajectory Accelerated by E-Commerce and Port-Related Demand
The industrial market performed better than all other commercial real estate sectors during a pandemic-stricken 2020 and the fundamentals highlight this to end Q1 2021. With rents at all-time highs and vacancies at all-time lows, the sector is positioned to continue thriving going forward. With space demand exceedingly high, and supply of quality space unhealthily sparse, speculative development must increase for the market to continue its positive trajectory.
- The market has seen a large amount of tenant interest, as evidenced by over 130 users (per Colliers research) looking for over 10 million square feet of space in the market, including both tenants currently in-market and out-of-market. An increase in demand for e-commerce and port-related uses has been especially prevalent in recent quarters.
- With vacancy tight and little quality space available, the market has become increasingly landlord-favorable, which has led to higher rents and fewer concessions.
- There are currently six properties under construction in the Norfolk market totaling over 5 million square feet, the most product concurrently under construction in the past decade.