Norfolk Office Figures Q1 2025

The Norfolk office market recorded four consecutive quarters of occupancy gain in 2024. That trend continued into the first quarter of 2025, with 51,500 sq. ft of positive net absorption. The largest move-in during the quarter was VSC Fire & Security’s occupancy of 32,600 sq. ft. at 850 Greenbrier Circle in the Chesapeake/Greenbrier submarket.

Occupancy gains during the quarter resulted in a 10-basis point (bps) decline in the overall vacancy rate, which now sits at 9.8%. Most Norfolk submarkets have vacancy rates in the single-to-low-double digits, though some have outsized levels of vacant space. Hampton currently has the highest vacancy rate of all submarkets at 19.2% and recorded and 16,500 sq. ft of occupancy loss during the first quarter.

Despite occupancy gain for the overall market, leasing was muted to start the year with just 12 tenants signing leases totaling 197,900 sq. ft. The majority (83%) of transactions were relocations, with just two renewals during the first quarter. Asking rates held steady at $21.85 per sq. ft. per annum on a full-service basis.