Southeast Industrial Labor Report_Q1 2024

HAMPTON ROADS, VA

ABSORPTION, NEW SUPPLY, & VACANCY RATES

7

4%

6

MSF

3%

5

4

2%

3

ABSORPTION, NEW SUPPLY & VACANCY RATES

2

1%

Overall Net Absorption Construction Completions Overall Vacancy Rate

1

0

0%

2018

2019

2020

2021

2022

2023

DEMOGRAPHICS

Population

2,011,967

Projected Population Change (5-Year)

2.3%

Working Age Population (Ages 18-64)

1,245,456

• Market activity was solid through the first half of 2023 with pent-up demand and limited availability for spaces under 75,000 sf. Leasing slowed during the second half of the year, although smaller transactions remained steady, as rising interest rates coupled with an 11% reduction in TEU volume from the port caused tenant activity for larger spaces to cool. The industrial market has grown substantially in recent years in tandem with the metro’s explosive population growth. • The port remains one of the primary demand drivers for the region’s industrial market. Defense contractors kept the region more active for smaller in-fill requirements than other markets, and to a lesser degree, the food and beverage industry helped drive demand.

Labor Force

1,018,373

Median Household Income

$68,282

Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree

49.5%

Target Blue Collar Demographic Volume

173,737

Target Blue Collar Demographic Concentration

0.7

MATERIAL MOVING OCCUPATIONS

PRODUCTION OCCUPATIONS

INDUSTRIAL LABOR

2024 Employment Volume

27,433

52,086

• Wages for industrial workers in Hampton Roads are on par with the U.S. average despite a lower concentration of target blue collar demographics.

Worker Concentration

0.9

0.9

Projected 5-Year Employment Growth

2.7%

0.4%

Average Wages

$21.14

$22.00

Source: Cushman & Wakefield Research, Economic Research Institute, Experian

Wage Index

99

100

Demographics include Norfolk-Portsmouth-Newport News DMA

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Cushman & Wakefield | Southeast Industrial Labor Report