Norfolk Industrial Figures Q1 2025

The Norfolk industrial and logistics market recorded 155,000 sq. ft. of negative absorption during the first quarter, with just three move-ins larger than 20,000 sq. ft. recorded. In the largest move in, Winsupply took occupancy of 23,400 sq. ft. at 5465 Greenwich Road. Conversely, large move outs such as Transnational Food vacating 169,400 sq. ft. at 201 West Dexter Street drove overall absorption during the first quarter.

The completion of the speculative Phenix Commerce Center Building One added 540,500 sq. ft. of new vacancy to the market, pushing the overall vacancy rate up 60 basis points (bps) to 4.4%. In total, 6.2 million sq. ft. remains under construction across the Norfolk industrial market, of which 40% is speculative.

Sustained low vacancy rates paired with economic uncertainty have caused a slowdown in leasing activity. Tenants signed 17 leases totaling 510,600 sq. ft. during the first quarter, a steep decline from a strong Q4 2024. However, more than two-thirds of all leases signed during the quarter were relocations, signaling an uptick in expected occupancy gains in coming quarters.