Multiple Large Deliveries Highlight Strong Activity Within Norfolk Retail Market in 2019
The Norfolk retail market experienced 174,836 square feet of negative net absorption throughout Q4 2019, which raised the vacancy rate 50 bps (basis points) to 6.4%. All of the negative net absorption occurred on the Peninsula, which ended the quarter with 219,181 square feet of negative net absorption, while the Southside experienced 44,345 square feet of positive net absorption during Q4 2019.
Throughout 2019, the Norfolk market experienced 189,699 square feet of positive net absorption, with the Southside experiencing 495,490 square feet of positive absorption while the Peninsula experienced 305,791 square feet of negative absorption. Much of the positive absorption on the Southside was due to the deliveries of the IKEA and Wegmans in April.
Average asking rents (NNN) ended Q4 2019 at $13.78 across all retail product types, which is an increase of $0.02 quarter-over-quarter.