Hampton Roads Real Estate Market Reports

Hampton Roads Industrial Market Report

The market continues to experience positive absorption, seeing 250,000 SF of positive net absorption during Q1 2025. The continued positive absorption has created a tight market, with a vacancy rate of only 5.5% to end the quarter. Average asking rents ended Q1 2025 at $10.13 PSF, an increase of 3.8% year-over-year. Overall, the market has seen an impressive 40.9% increase in rents from the beginning of 2020. The market’s development remains robust, experiencing over 6.4 MSF of deliveries in 2022, almost 3.4 MSF of deliveries in 2023, and 2.2 MSF of deliveries throughout 2024. Furthermore, the market saw 1.2 MSF of deliveries during Q1 2025 and ended the quarter with 13 properties under construction totaling over 4.1 MSF, higher than the decade average of 2.7 MSF under construction.