| Market Overview
Virginia Business
September 2004
Focus:
Hampton Roads
The office market showed gradual improvement through
the first half of 2004. Overall, vacancy rates are down
slightly, but Peninsula properties showed dramatic improvement
with the mid-year rate dropping from 16.7 percent to
12.7 percent. Net absorption (the change in the amount
of occupied space over a period of time) remained moderate
for the first half of 2004. Again, the Peninsula led
the way in absorption with the largest lease transaction
in the market: Northrop Grumman’s 101,000-square-foot
lease at Hampton’s NetCenter. Overall, average
rental rates were up for the region.
Highlights:
• Size of multi-tenant office market: nearly 22
million square feet
• Class A and B vacancy: 12.3 percent
• Under construction: 257,000 square feet
Return to Virginia Business - September 2004
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