The Hampton Roads industrial market ended the quarter maintaining its slow and steady pace. Vacancy dropped to 4.1% and absorption was positive totaling 738,012 SF. Average industrial rental rates decreased from the second quarter and ended the third quarter at $4.82, and flex properties ended at $6.89, an increase from the second quarter.
No major transactions occured in the third quarter. Most leases in Hampton Roads are renewals for tenants in place.
The biggest challenge that the industrial market continues to see this quarter is the lack of supply of buildings. At the end of the third quarter, three buildings were delivered totaling 268,900 square feet, and 620,000 square feet of industrial space was under construction.