Transitioning neighborhoods, particularly Scott's Addition, have benefited from millions of dollars in private investment in the past couple of years. Investors continue to collect industrial buildings to redevelop into creative office, multifamily or retail space - continuing to tighten the industrial market. The survey of industrial space within the Richmond MSA is limited, with vacancy at 6%. Just five years prior, availability was double.
With little to no new projects planned, we can expect a continuous tight market with rising rental rates. New warehouse construction that has been announced is spurring substantial pre-leasing.