Despite sequestration, Hampton Roads region seeing positive absorption
The CBRE office of Hampton Roads had good news for the office and industrial commercial real estate sectors in the second quarter. Despite concerns of how sequestration by the U.S. government would impact the market, a report shows positive absorption — the rate at which rentable space is filled.
According to CBRE’s market analysis, the Lynnhaven submarket reported more than 46,000 square feet of positive absorption in that area alone, mostly due to New Hope Center leasing 18,479 square feet at Oceana Place.
The region’s strongest-performing office submarket continues to be the Pembroke area of Virginia Beach with a vacancy rate of 7.3%. There was a significant increase in office space under construction from the first quarter, with the largest of these projects being the development of 4525 Main Street in the Pembroke submarket.
The overall office market net absorption tracked by CBRE was positive 110,086 square feet on a market base of 23.2 million square feet.
Some major transactions also boosted the industrial sector.
AGI purchased 156,000 square feet at Oceana West Corporate Park in the Lynnhaven submarket, and Lumber Liquidators signed a lease for 150,000 square feet at Northgate Logistics Center in Suffolk.
The region’s strongest-performing industrial submarket continues to be the Oyster Point / Middle Peninsula area of Newport News with a vacancy rate of 1.8%. The overall industrial market net absorption tracked by CBRE was positive 198,900 square feet on a market base of 79 million square feet.