Overall Office Market
2,000,000
Office Absorptions and Completions
Virginia Beach-Norfolk-Newport News MSA; 2006-2013
The office market in the VA Beach MSA has only recently begun to
recover from a dramatic contraction from 2008 through 2011. From
2006 to 2013, the average annual office absorption was only half the
volume of office space delivered in the MSA. Construction activity
dipped to 150,000 square feet in 2012 (less than 10% of the highest
2006-2013 Avg. Absorption:
450,000
2006-2013 Avg. Completion:
900,000
500 000
1,000,000
1,500,000
annual completion levels before the downturn). Net absorption was
close to -500,000 square feet in 2011. The market appears to be
improving, showing a promising uptick in both absorption, completions,
occupancy, and rent growth in 2013.
(500,000)
-
,
2006 2007 2008 2009 2010 2011 2012 2013
(1,000,000)
Net Absorption Completions
Source: CoStar
Office Performance
EXISTING INVENTORY
VACANCY
2013 NET
ABSORPTION
2013
DELIVERIES
4Q 2013 UNDER
CONST. SF
QUOTED
RATES
#
BLDS
TOTAL
RBA
DIRECT
SF
TOTAL
SF
VAC
%
Southern Chesapeake Submarket and MSA; 2013
Submarket
104
592,515 51,582 48,555 8.2% 8,066
2,884
2,884
$15.31
As a Percentage of Total
Market
3% 1%
1% 1%
1%
1%
1%
Total Market
3,287 48,411,521 5,641,925 5,708,956 11.8% 748,934
390,173
375,277
$16.52
Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40
33
Source: CoStar
