Market Fundamentals Remain Healthy to Close Out 2019
Norfolk’s vacancy remained at a historical low of 10.2% to end 2019. This vacancy rate carried over quarter-over-quarter, as Q4 2019 ended with only 6,228 square feet of positive absorption. This vacancy rate is a decrease of 66 basis points year-over-year, highlighting the positive activity that occurred throughout 2019, as 2019 ended with 229,203 square feet of positive absorption. The vacancy rate has been steadily declining since it reached a peak of 18.3% in 2011.
Average asking rents increased slightly in Q4 2019, ending the year at $20.15, an increase of $0.21 quarter-over-quarter and $0.69 year-over-year. It is likely rents will continue to increase in the short term due to an increasingly tight market that favors landlords.