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October 2020

Norfolk Industrial Real Estate Summary: Leases, Sales, and Construction Stats

Ashley Capital gathers the latest statistics for leases, sales, and construction in Norfolk’s industrial real estate sector. Every quarter the largest deals are listed in order to illustrate the current state of the market.

Needless to say the most recent quarter has been affected by the current pandemic, and the true outcome of the shift in economics won’t be seen for a quarter or two.

Norfolk Industrial Real Estate Lease Statistics Q3 2020 - Ashley Capital

Top Norfolk Industrial Real Estate Lease Statistics

12 Month Deliveries in Square Feet: 973,000 (231,000 in Q2 2020)
12 Month Net Absorption in Square Feet: 841,000 (796,000 in Q2 2020)
Vacancy Rate: 2.8% (2.7% in Q2 2020)
12 Month Rent Growth Rate: 4.2% (3.9% in Q2 2020)

Top Norfolk Industrial Leases (Past 12 Months)

1) Property: 2020 Northgate Commerce Pky
Submarket:
South Suffolk
Leased SF:
3,800,000
Quarter:
Q1 2020
Tenant: Amazon
Tenant Rep: Not Listed
Leasing Rep:
Not Listed

2) Property: 4910 Portsmouth Blvd
Submarket: 
Cavalier 
Leased SF:
650,000
Quarter:
Q1 2020
Tenant: Amazon
Tenant Rep:
Not Listed
Leasing Rep: Not Listed

3) Property: 1920 Campostella Rd
Submarket:
Bainbridge
Leased SF:
148,640
Quarter:
Q2 2020
Tenant: Transnational Food
Leasing Rep: Harvey Lindsay CRE

4) Property: 5401 Virginia Regional Dr
Submarket: 
South Suffolk
Leased SF:
127,500
Quarter:
Q4 2019
Tenant: Not Listed
Tenant Rep:
Not Listed
Leasing Rep: Colliers International

5) Property: 1440 London Bridge Rd
Submarket:
Lynnhaven
Leased SF:
100,000
Quarter:
Q4 2019
Tenant:
U-Play USA LLC
Leasing Rep: John Lee & Associate

 

Norfolk Industrial Real Estate Sales Statistics Q3 2020 - Ashley Capital

Top Norfolk Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 114 (157 in Q2 2020)
Average Cap Rate:
7.9% (8.1% in Q2 2020)
Average Price/ SF: 
$73 ($66 in Q2 2020)
Average Vacancy at Sale: 5.3% (6.5% in Q2 2020)

Top Norfolk Industrial Property Sales

1) Property: Indian River Distribution Center (2601 Indian River Rd)
*Rating:
3
Year Built: 
2006
Building SF: 
231,852
Vacancy:
0%
Price (PSF): 
$19,913,333 ($86)
Cap Rate: 
Not Listed

2) Property: 2110 Smith Ave
*Rating: 4
Year Built: 2006
Building SF: 32,040
Vacancy: 
0%
Price (PSF): $18,500,637 ($577)
Cap Rate: Not Listed

3) Property: Building B (5391 Virginia Regional Dr)
*Rating:
5
Year Built: 
2017
Building SF:
284,580
Vacancy: 
29.4%
Price (PSF): 
$17,850,00 ($63)
Cap Rate: 
Not Listed

4) Property: 3000 John Deere Rd 
*Rating: 4
Year Built: 2000
Building SF: 307,184
Vacancy: 
0%
Price (PSF): $15,350,000 ($50)
Cap Rate: Not Listed

5) Property: Bridgeway Commerce Center (6900 Harbour View Blvd)
*Rating:
4
Year Built: 
2006
Building SF:
168,000
Vacancy: 
0%
Price (PSF): 
$14,436,191 ($86)
Cap Rate: 
Not Listed

*Rating is 1-5, 5 being the best

Norfolk Industrial Real Estate Construction Statistics Q3 2020 - Ashley Capital

Norfolk Industrial Construction Projects Statistics

Properties Currently Under Construction: 9 (12 in Q2 2020)
Total Size in Square Feet:
4,629,500 (4,639,742 in Q2 2020)
Percent of Inventory:
4.4% (4.5% in Q2 2020)
Preleased: 98.4% (99.2% in Q2 2020)

Top Norfolk Industrial Projects Under Construction

1) Property: Amazon Warehouse (2020 Northgate Commercial Dr)
Rating*:
4
Building SF:
3,800,000
Stories: 
5
Completion:
Q1 2022
Developer/ Owner:
Amazon.com

2) Property: Amazon Fulfillment Center (4910 Portsmouth Blvd)
Rating*:
5
Building SF:
650,000
Stories:
1
Completion:
Q4 2021
Developer/ Owner:
Amazon

3) Property: Yorktown Commerce Center (328 Old York-Hampton Hwy)
Rating*:
3
Building SF:
43,500
Stories:
1
Completion:
Q4 2020
Developer/ Owner:
Boca Futures LLC

4) Property: PointOne Building 2 (1230 Corporate Landing Pky)
Rating*:
2
Building SF:
31,000
Stories:
1
Completion:
Q2 2020
Developer/ Owner:
Not Listed

5) Property: PointOne Building 1 (Corporate Landing Pky)
Rating*:
2
Building SF:
31,000
Stories:
1
Completion:
Q2 2020
Developer/ Owner:
Not Listed

*Rating is 1-5, 5 being the best

Data Sources: Ashley Capital & CoStar