Virginia Beach Market Report

Yield Range

4.9-5.9%

Vacancy Rate

4.3-4.5%

Active Deals

Outlook

Positive

Virginia Beach/Hampton Roads CRE market stable, anchored by defense, port, tourism. Office recovering, industrial digesting supply, retail/multifamily tight. TenantBase Q1 2026

Yields & Returns

Cap rates (proxy): Multifamily 4.9-5.9%, Retail 6-7.4%, Office 8-9%, Industrial 6.2-7%. Apartment Loan Store

Vacancy & Supply

Vacancy Rates

Office: 12.8%; Industrial: 7.7%; Retail: 4.3-4.5%; Multifamily: 5.3%. TenantBase, Newmark, CBRE

Supply Pipeline

Office: 185k SF uc; Industrial: 1.7M SF uc (post 5.2M delivery); Multifamily: <1800 units uc (down from peaks). TenantBase

Competitor Activity

Multifamily sales drove Hampton Roads volume up YoY; $45M 509k SF industrial flex portfolio (Chesapeake); Oceana Center One office $5.2M (Feb 2026); Atlantic Park Phase 1 opened. CoStar, Thalhimer, TenantBase Blog

Firm	Activity	Asset	Detail	Value
Various	Transaction	Commercial	Multifamily sales drove Hampton Roads volume up YoY	N/A
Various	Transaction	Commercial	$45M 509k SF industrial flex portfolio (Chesapeake)	$45M
Various	Transaction	Commercial	Oceana Center One office $5.2M (Feb 2026)	$5.2M
Various	Transaction	Commercial	Atlantic Park Phase 1 opened. CoStar, Thalhimer, TenantBase Blog	N/A

Demand Drivers

Defense/military (Joint Expeditionary Base, Naval Air Station), port logistics, tourism (oceanfront), major employers: Sentara Healthcare (4900 jobs), GEICO (3600), STIHL (3300). TenantBase, YesVirginiaBeach

Rental Market

Office rents $23.57/SF (+2.8% YoY), Industrial $10.30/SF (+3.2%), Multifamily $1603/unit (+3.5%), Retail up 7.8% YoY; tight retail demand. TenantBase

Employment & Economy

Hampton Roads nonfarm payrolls +2% YoY to 820k; low unemployment; strong in defense, healthcare, logistics. HUDUSER

Migration & Demographics

City pop ~452k, slight decline -0.44%/yr but metro growing; net domestic out-migration offset by international in-migration. NCHStats, USAFacts

Transport & Connectivity

I-64/264/664, CSX/Norfolk Southern rail, Norfolk Intl Airport, Port of Virginia (3rd largest East Coast). YesVirginiaBeach

Key Risks

Industrial oversupply digestion, office negative absorption, moderating rent growth, flat pop growth long-term. TenantBase

Outlook 12–24 Months

Office recovery w/ low supply; industrial vacancy compress late 2026 post-supply wave; multifamily tightening w/ low pipeline; retail resilient. Stable/positive into 2027. TenantBase

Sources

TenantBase Q1 2026 ↗Newmark ↗Apartment Loan Store ↗CoStar ↗HUDUSER ↗YesVirginiaBeach ↗NCHStats ↗