Demand remains strong for Northern Virginia industrial space as the market closed 2018 with 1.4 million sq. ft. of total net absorption, marking its fifth consecutive year with more than 1 million sq. ft. of occupancy gains.
The growth in demand was driven by robust activity in the Loudoun County warehouse market, specifically within Route 28/Dulles North, which accounted for 1.0 million sq. ft. of positive absorption for the year, or 74% of the market’s total occupancy gains.
Construction activity increased for the fourth consecutive year during 2018, delivering 1.1 million sq. ft. of industrial assets (at a prelease rate of 42%), the second highest annual volume for the Northern Virginia market over the past decade.
Investment sales activity totaled $658.0 million in 2018, exceeding the five-year average of $568.7 million.