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Northern VA Industrial Shows Strength with 3% Vacancy, 10% Rent Growth
The sustained demand for industrial/warehouse product in the Northern VA region is now resulting in a market-wide shortage with no relief in sight given the relative lack of developable land around the beltways, summarizes the Northern Virginia Industrial/Flex Third Quarter Market Brief from Edge.
The brief reports:
- Direct vacancy rate now stands at 3.3%
- 2.25 million square feet of space was absorbed over the past 12 months
- Base rent growth grew by 9.72% year over year
- The average rental rate for triple net space is currently $10.43
“The scarcity of product has been exacerbated by the seemingly insatiable demand for this asset class, combined with the tug-of-war for premium land among residential housing and data center developers,” explained Edge’s Emiliano Morales Flores. “Illustrating the fierce competition is the growing trend among developers and end-users to acquire commercial office buildings and subsequently demolish them to erect warehouse or flex/industrial product in its place.”
- ◦Economy
