Appendix | 181
Overall Industrial Market
At the MSA level, the industrial market had a challenging 2013 after a
brief recovery from the recession. Average industrial rents and
occupancy appeared to bottom in 2010, at $4.50 and 90%. The market
delivered a total of over a million square feet of industrial space over
the two years, allowing rent and vacancy to recover to nearly
2007/2008 levels. Vacancy has continued to drop from the high in 2009.
In 2013, however, the MSA experienced net negative absorption. Rents
have slipped slightly from $4.90 in 2010 down to $4.60 in 2013.
3,000,000
2006-2013 Avg. Absorption:
-4,000
Industrial Absorption vs. Completions
Virginia Beach-Norfolk-Newport News MSA; 2006-2013
Industrial Asking Rent and Vacancy
Virginia Beach-Norfolk-Newport News MSA; 2006-2013
12%
$5.4
2,000,000
2,500,000
2006-2013 Avg. Completion:
1,000,000
8%
10%
$5.0
$5.2
500,000
1,000,000
1,500,000
6%
$4.6
$4.8
-500,000
0
2006 2007 2008 2009 2010 2011 2012 2013
2%
4%
$4.2
$4.4
-1,500,000
-1,000,000
Absorption Completions
0%
$4.0
2006 2007 2008 2009 2010 2011 2012 2013
MSA Rent (NNN)
MSA Vacancy
Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40
36
Source: CoStar
Source: CoStar
