Norfolk Office Figures Q1 2026

The market in Q1 2026 softened further but at a slower pace. Net absorption was negative 34,000 sq. ft., improving from negative 45,000 sq. ft. in Q4 2025, yet down from positive 75,000 sq. ft. in Q1 2025. This followed a sharp shift at the annual level, as full‑year absorption moved from 518,000 sq. ft. of positive net absorption in 2024 to negative 450,000 sq. ft. by year‑end 2025. Vacancy rose to 11.0% in Q1 2026, up 0.3 percentage points quarter‑over‑quarter and 1.6 percentage points year‑over‑year.

Pricing and space options moved more narrowly. The average asking rate remained steady from quarter-to-quarter, going from $22.00 in Q4 2025 to $21.99 in Q1 2026. Availability edged down to 11.5%, a 0.3‑percentage‑point decrease from Q4 2025 and 0.4 percentage points below Q1 2025. Construction activity increased, with space under construction rising from 43,000 sq. ft. and one project in Q4 2025 to 75,000 sq. ft. and three projects in Q1 2026, after several quarters with little or no pipeline.