Norfolk Industrial Figures Q2 2026

Rising vacancy and availability continued to shape the market conditions during the second quarter, with vacancy increasing by 60 basis points (bps) to 8.1% for the overall market and availability reaching 9.6%. Demand continued to slow and the market recorded a net occupancy loss of 775,000 sq. ft. as significant move-outs overpowered new occupancy. These supply-heavy market conditions pushed the average asking rate down 1.6% quarter-over-quarter to $9.20 per sq. ft.

Despite the weakened market fundamentals, the construction pipeline expanded this quarter with two projects totaling 1.3 million sq. ft. breaking ground. Both projects are estimated to deliver in 2027, so the latter half of 2026 will see a period of respite from new product entering the market.