Market Overview

 

The Norfolk retail market showed slight increases in vacancies throughout Q1 2019, ending the quarter with 207,908 sq. ft. of negative net absorption, which raised the vacancy rate 30 bps (basis points) to 5.9%.  Average asking rents (NNN) ended Q1 2019 at $13.34 across all product types, which is a slight decrease of $0.30 quarter-over-quarter, however an increase of $0.77 year-over-year.  Market rents have been increasing since the recession, and that trend is expected to continue in the near future.  With the upcoming deliveries of IKEA and Wegmans, the area is showing that it can be attractive to selective, high-quality retailers.  Both of these retailers are known for providing high-quality experiences within their stores, despite their products being the main drivers of business. They highlight the growing trend of experiential retail, which will likely continue gaining popularity as brick-and-mortar continues to evolve.