“Real estate investors and importers are driving record asset pricing and development in the Norfolk industrial market. Near-zero warehouse availability is fueling significant build-to-suit activity and new speculative development. Altogether, the Colliers Norfolk Industrial Team anticipates at least 9 spec projects totaling 2.1 million square feet to be delivered between now and the fourth quarter of 2023.”
Lang Williams, SIOR | Executive Vice President
- Suffolk, the largest submarket in Norfolk, contains approximately 16.6 million square feet of inventory and currently has no vacancy, with only 0.5% of space listed as available. Suffolk is also the most active submarket, with almost 4.7 million square feet of positive net absorption during the past 12 months and over 3.4 million square feet under construction, including a 1.5 million square foot distribution center that broke ground this quarter.
- There are over 200 tenants looking for over 15 million square feet of space in the market, ranging from space requirements of one thousand square feet to over one million square feet. Tenants are especially interested in properties with a significant amount of dock doors and trailer spaces.
- The market saw almost 500,000 square feet of leasing activity during Q2 2022, which is less than half the decade average of 1.1 million square feet. This highlights how tight the market currently is, as there is almost no space for tenants to move into, capping potential leasing activity.