Norfolk Industrial Figures Q4 2025

The Norfolk industrial and logistics market experienced a slow down in activity during the fourth quarter, but still recorded occupancy gain of 66,000 sq. ft. Despite positive absorption, vacancy increased 100 basis points (bps) to 6.5% due to significant speculative deliveries. In turn, asking rates decreased slightly to $9.32 per annum on a triple-net basis.

Many notable projects delivered in Q4, including the Port 460 Logistics Center Building 1 at 2925 Pruden Boulevard in Suffolk, which added 339,660 sq. ft. of speculative space to the market. Building 2 of this development remains under construction and is expected to deliver in Q1 2026. 460 Commerce Center also delivered during the fourth quarter, adding 352,000 sq. ft. of vacant space to the market. In total, 1.4 million sq. ft. delivered, 85% of which is available for lease.

Leasing decreased slightly this quarter, with 788,700 sq. ft. of activity across 35 transactions. Among fourth quarter transactions, 71% were relocations. The average lease size was just 22,535 sq. ft. and only one lease over 100,000 was signed.