Virginia Beach Commercial Office Space for Rent

Q4 2025

Virginia Beach Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Virginia Beach commercial real estate (CRE) market is demonstrating steady growth and stability in late 2025, driven by its diverse economy and strategic location. The Office sector is seeing positive absorption and stable vacancy, outperforming many national markets [1, 2]. Industrial fundamentals remain robust, with tight vacancy and strong demand from logistics and defense-related tenants [3, 4]. Retail is thriving, with vacancy rates at historic lows and rent growth accelerating [5, 6]. Multifamily is stabilizing as the market absorbs new supply, with occupancy remaining high [8].

TenantBase Proprietary Data [10] highlights the distribution of active tenant demand over the last 90 days (128 total deals):

  • Retail/Storefront led market activity with 67.97% of all searches [10].
  • Warehouse was the second most active sector at 26.56% [10].
  • Office accounted for 6.25% of total search volume [10].

Office Market

Market Overview Virginia Beach's office market is characterized by stability and resilience, with vacancy rates remaining below national averages and positive net absorption.

  • Vacancy & Availability: The overall vacancy rate stands at 7.9%, significantly lower than the national average [1]. Class A properties in the Town Center and Lynnhaven submarkets continue to see strong demand [2].
  • Net Absorption: The market recorded positive net absorption of 186,227 SF year-to-date, driven by government contractors and professional services firms [1].
  • Rental Rates: Asking rents have increased by 2.7% year-over-year to $21.50 per SF full-service [1].
  • Market Drivers: TenantBase data indicates limited office demand in recent months, accounting for only 6.25% of total searches, with a preference for smaller spaces under 1,000 SF [10].

TenantBase Activity [10]

  • Demand Share: Office accounted for 6.25% of total search volume [10].
  • Lease Term Preference: Demand is spread across lease terms, with 33.33% of office inquiries seeking leases of 2-3 Years and 33.33% for 3-5 Years [10].
  • Size Requirements: The average lower size requirement for office space is 500 SF, reflecting a market driven by small businesses and satellite offices [10].

Industrial & Warehouse Market

Market Overview The Virginia Beach industrial market remains a strong performer, supported by the Port of Virginia and robust defense spending.

  • Vacancy & Rent: Vacancy is tight at 3.1%, one of the lowest rates in the region [3]. Asking rents have risen to $9.25 per SF (NNN), reflecting strong competition for space [3].
  • Demand & Supply: Leasing activity is steady, with logistics and manufacturing users driving demand [4]. The construction pipeline is active, with several build-to-suit projects underway [4].
  • Leasing Highlights: TenantBase data shows a preference for shorter lease terms, with 36.84% of warehouse inquiries for 1-2 Year terms [10].

TenantBase Activity [10]

  • Demand Share: Warehouse accounted for 26.56% of total search volume [10].
  • Lease Term Preference: Demand is strongest for short-term commitments:
    • 1-2 Years: 36.84% of deals [10].
    • 2-3 Years: 31.58% of deals [10].
    • Less than one year: 15.79% of deals [10].
  • Size Requirements: The average lower size requirement for warehouse space is 1,500 SF for 1-2 year terms, increasing to 6,250 SF for 2-3 year terms [10].

Retail Market

Market Overview Virginia Beach's retail sector is booming, with strong consumer spending and limited new supply driving vacancy to historic lows.

  • Vacancy & Availability: Retail vacancy is extremely tight at 3.4%, with prime corridors seeing near-full occupancy [5].
  • Rental Rates: Rent growth is robust, rising 4.1% year-over-year to an average of $18.50 per SF (NNN) [5].
  • Construction: New retail development is minimal, focused primarily on grocery-anchored centers and mixed-use projects [6].

TenantBase Activity [10]

  • Demand Share: Retail/Storefront activity dominated with 67.97% of all search volume [10].
  • Lease Term Preference: Retail tenants show a clear preference for stability:
    • 3-5 Years: 33.33% of deals [10].
    • 5+ Years: 20.51% of deals [10].
    • 1-2 Years: 20.51% of deals [10].
  • Top Locations: Tenant interest is highest in Virginia Beach (13 deals), Norfolk (10 deals), and Chesapeake (8 deals) [10].

Multifamily Market

Market Overview The multifamily market is stabilizing as it absorbs a wave of new supply, with occupancy rates holding firm and rent growth poised to return.

  • Vacancy & Occupancy: Vacancy is estimated at 5.2%, slightly elevated due to recent completions but trending downward [8].
  • Rents: Average asking rents rose 2.8% year-over-year to $1,450 per unit, driven by demand for affordable housing options [8].
  • Construction: The construction pipeline is thinning, with starts down significantly from their peak, which will support tighter conditions in 2026 [8].
  • Investment: Investor interest remains strong, with sales volume picking up as pricing expectations adjust [9].

2026 Outlook

Looking ahead to 2026, the Virginia Beach market is positioned for continued stability and growth.

  • Industrial Strength: The industrial sector will continue to benefit from port expansion and defense spending, with vacancy expected to remain low [3].
  • Retail Resilience: Limited new supply and strong consumer spending will keep retail vacancy low and rents rising [5].
  • Multifamily Recovery: As new supply tapers off, multifamily vacancy is projected to compress, supporting stronger rent growth in 2026 [8].

Sources

  1. Cushman & Wakefield: Hampton Roads Office MarketBeat Q3 2025
  2. Colliers: Norfolk/Hampton Roads Office Market Report Q3 2025
  3. Cushman & Wakefield: Hampton Roads Industrial MarketBeat Q3 2025
  4. Colliers: Norfolk/Hampton Roads Industrial Market Report Q3 2025
  5. Cushman & Wakefield: Hampton Roads Retail MarketBeat Q3 2025
  6. Divaris Real Estate: Hampton Roads Retail Market Report
  7. Commonwealth Commercial: Hampton Roads Market Reports
  8. Yardi Matrix: Hampton Roads Multifamily Market Report – September 2025
  9. Berkadia: Hampton Roads Multifamily Report Q3 2025
  10. TenantBase Proprietary Market Data (Virginia Beach - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.