Overall, the Richmond office market has experienced strong activity throughout the third quarter, with rents peaking, especially in hotspots such as Scott's Addition, where triple net rents are around $19.00-$19.50 PSF. The vacancy rate was 7.4%, down over the previous quarter. Net absorption was positive totaling 72,363 square feet.
With spotty activity in the suburbs, the downtown Richmond market remains fairly active as many companies look towards downtown as a viable option. Riverfront Plaza saw a handful of leases, including Thomson Reuters, an international media and information company, which has leased just under 10,000 SF. Meanwhile, SunTrust Center at 919 E. Main Street has been dealing with over 110,000 SF of vacancy, not including SunTrust's current lease, which is set to expire at the end of 2017. The SunTrust downsizing is expected to bring the vacancy to over 177,000 SF.
There are no spec buildings on the horizon, driven by cost, however almost all of the new construction in the Richmond office market has been driven by the healthcare sector.
Q3 2017 Office Market Snapshot
Author: Statia Gibson
Date Published: 09/01/2017