Report | Hampton Roads Office Insight - Q4 2015
Hampton Roads saw investors come to town in droves in 2015—to take advantage of Class A assets with 7 to 8 percent cap rates and less than 10 percent vacancy rates. Overall investment volume rose from $52.2 million in 2014 to $259.1 million in just a 12-month span.
A shift away from new construction—and its 33 percent premium over existing Class A space—took hold as conversions of older properties became a more attractive alternative for developers.
We’ve seen Downtown Norfolk become a poster child for this redevelopment strategy, with two properties there (1 and 2 Commercial Place) undergoing massive changes in an effort to eliminate an average 52 percent vacancy rate at that office complex.
Learn more about what’s happening—and what we expect to occur in the coming months—in the Hampton Roads office market in our Q4 US Office Insight.
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