Southern Chesapeake Submarket Office Market
Between 2006 and 2013, the Southern Chesapeake Submarket
delivered 100,000 square feet of new office space and absorbed a net
total of 60,000 square feet. In the last two years, office vacancy in the
submarket stabilized to the long-term average of approximately 9%.
Vacancy in the MSA rose from 2006 to 2010 to nearly 15%, dropping
slightly in the past two years to 11%. Average asking rents, $16.50 in
the MSA and $15.30 in the submarket, are still below pre-recession
levels.
Office Absorption vs. Completions
Southern Chesapeake Submarket 2006-2013
Office Asking Rent and Vacancy
Southern Chesapeake Submarket and MSA; 2006-2013
20%
25%
40,000
60,000
80,000
20%
25%
$14
$16
$18
$20
15%
0
20,000
10%
15%
$8
$10
$12
5%
10%
(60,000)
(40,000)
(20,000)
5%
$2
$4
$6
0%
(80,000)
2006 2007 2008 2009 2010 2011 2012 2013
Net Absorption
RBA Delivered
Vac %
0%
$0
2006 2007 2008 2009 2010 2011 2012 2013
Submarket Avg. Rent
MSA Avg. Rent
Submarket Vacancy
MSA Vacancy
Dominion Boulevard | City of Chesapeake | April 11, 2014 | E4-11982.40
35
Source: CoStar
Source: CoStar
