The Richmond industrial market continues to be tight, with rents increasing to $4.72, often with no concessions. The vacancy rate was down over the previous quarter at 4.8%. Net absorption was positive at 978,582 square feet.
One of the largest lease signings this quarter was by Amazon at Northlake Enterchange, taking 320,853 square feet for their second distribution center in the region. Panattoni Development Co. has announced its plans for a 1 million-square-foot spec distribution center at 4701 Commerce Road, on the Richmond/Chesterfield County line off of I-95.
The increasing cost of steel has taken a toll on new construction, which is expected to continue to increase.