Virginia Beach Commercial Office Space for Rent

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Q3 2026

Q3 2026

Q3 2026 Virginia Beach Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Virginia Beach office vacancy was 8.8% in Q3 2026, below the 11.1% Hampton Roads average. The Port of Virginia opened a 55-foot channel, the deepest on the East Coast, and a 1 million SF speculative distribution center is underway at Port 460 in Suffolk. On TenantBase, office demand more than tripled to 64.9% of Virginia Beach tenant searches, up from 19.4% in Q2.

Sector Snapshot

Office: Mixed. Hampton Roads vacancy rose to 11.1%, while Virginia Beach held at 8.8%.
Industrial: Port-driven. Vacancy was 8.0% in Q2, with 3.54 million SF under construction.
Retail: Tight. Virginia Beach retail vacancy was 3.3%.
Multifamily: Rents rising. Annual effective asking rent growth reached 4.9% in May.

Virginia Beach Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Virginia Beach and Hampton Roads region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

Office: 64.9%
Retail/Storefront: 32.4%
Warehouse/Industrial: 2.7%

Three-Quarter Trend

Office: 12.9% in Q1, 19.4% in Q2, 64.9% in Q3
Retail/Storefront: 67.7% in Q1, 61.3% in Q2, 32.4% in Q3
Warehouse/Industrial: 20.6% in Q1, 20.2% in Q2, 2.7% in Q3

Key Takeaways

Office became the top category, rising from 19.4% of searches in Q2 to 64.9% in Q3.
Office terms are split. Terms under one year and 3 to 5 year terms were requested equally, at 33.3% each.
Short-term office needs are small. Office searches under 3 years averaged 500 to 1,000 SF.
Retail tenants favor short terms. Terms under one year were the most requested for retail.

Office Market

Key Metrics (Q3 2026, Cushman & Wakefield | Thalhimer, Hampton Roads)

Vacancy: 11.1%, up 60 basis points from Q2
Net absorption: negative 147,806 SF in Q3
Asking rent: $23.43/SF full service, with Class A at $25.57/SF
Construction: 198,433 SF underway, mostly in Chesapeake
Submarkets: Suffolk at 2.0%, Harbourview/Western Branch at 4.3%, Virginia Beach at 8.8%, Norfolk at 14.1%, and Chesapeake at 15.4%

TenantBase Office Activity

Demand share: 64.9% of Virginia Beach tenant searches, up from 19.4% in Q2 and 12.9% in Q1.

Lease terms:

Less than 1 year: 33.3%
3 to 5 years: 33.3%
2 to 3 years: 25.0%
5+ years: 8.3%

Space requirements by term:

Less than 1 year: 500 to 1,000 SF
2 to 3 years: 500 to 1,000 SF
5+ years: 10,000 to 20,000 SF

TenantBase data vs. the market: Virginia Beach office tenants on TenantBase are mostly seeking small suites, with a few larger long-term requirements. At 8.8% vacancy, Virginia Beach offers fewer options than Norfolk or Chesapeake, so tenants with flexibility on location can gain leverage across the region.

Industrial & Warehouse Market

Key Metrics (Q2 2026, Cushman & Wakefield | Thalhimer, Hampton Roads)

Vacancy: 8.0%, up 120 basis points quarter over quarter
Asking rent: $9.39/SF
Construction: 3.54 million SF underway, including 2.45 million SF in South Suffolk
Submarkets: Lynnhaven at 2.2%, West Norfolk at 2.5%, North Suffolk at 1.2%, and South Suffolk at 12.6%
Port 460: a 1,048,711 SF speculative distribution center in Suffolk is delivering in Q1 2027 (Matan)

TenantBase Warehouse Activity

Demand share: 2.7% of Virginia Beach tenant searches, down from 20.2% in Q2 and 20.6% in Q1.

TenantBase data vs. the market: Warehouse searches on TenantBase were minimal in Q3. Small industrial tenants in Virginia Beach face tight conditions in Lynnhaven, while new supply in South Suffolk offers more options for larger users.

Retail Market

Key Metrics (Q2 2026, Cushman & Wakefield | Thalhimer)

Hampton Roads vacancy: 4.2%, with asking rent of $16.98/SF NNN
Virginia Beach: 3.3% vacancy and $21.34/SF asking rent
Net absorption: 422,593 SF in Q2

TenantBase Retail Activity

Demand share: 32.4% of Virginia Beach tenant searches, down from 61.3% in Q2 and 67.7% in Q1.

Lease terms: Terms under one year were the most requested, followed by 5+ year terms.

Space requirements: 3 to 5 year retail searches averaged 1,000 to 2,500 SF.

TenantBase data vs. the market: Virginia Beach retail tenants on TenantBase are seeking small storefronts. With vacancy at 3.3% and rents above the regional average, tenants should expect competition for well-located space.

Development & Economic Drivers

Port of Virginia: a 55-foot channel, the deepest on the East Coast, and a $650 million North Berth project completing in mid-2027 (Port of Virginia)
Offshore wind: Dominion's 2.6 GW Coastal Virginia Offshore Wind project was about 81% complete as of July 31 (offshoreWIND.biz)

Multifamily Market

Virginia Beach annual effective asking rent growth reached 4.9% as of May 2026, according to RealPage, up from 2% to 3% through 2025.

Q4 2026 Outlook

Office: Expect Virginia Beach to stay tighter than the regional average.
Industrial: Expect port investment to support demand as new Suffolk supply delivers.
Retail: Expect low vacancy to persist in Virginia Beach.
Multifamily: Expect rent growth to continue.

Frequently Asked Questions

What type of commercial space are Virginia Beach tenants searching for in 2026?

In Q3 2026, 64.9% of Virginia Beach tenant searches on TenantBase were for office space, 32.4% for retail space, and 2.7% for warehouse space.

What is the office vacancy rate in Virginia Beach?

Virginia Beach office vacancy was 8.8% in Q3 2026, compared with 11.1% across Hampton Roads, according to Cushman & Wakefield | Thalhimer.

What is the retail vacancy rate in Virginia Beach?

Virginia Beach retail vacancy was 3.3% in Q2 2026, according to Cushman & Wakefield | Thalhimer.

How can I find commercial space in Virginia Beach at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Virginia Beach and Hampton Roads region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.

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