More than 35.6 million square feet of industrial space has been delivered in the last five years in Richmond and Hampton Roads combined. Both markets continue to rank in the top five among peer cities in terms of the active construction pipeline as a percentage of the total inventory. Heading into 2025, developers are preparing for the next wave of groundbreakings to accommodate the steady uptick in active requirements, with multiple needs in the range of 500,000 to 1 million square feet circling both markets.

In this edition of Thalhimer’s research spotlight, we explore the trends in industrial market vacancy, rent growth, and absorption since the start of 2020 and compare Virginia’s regional markets to peer cities. We also look ahead to the next wave of development and how we expect market fundamentals, specifically rents and vacancy, to respond in the next year.