Richmond's office fundamentals are outperforming those of most other major national metros, with average vacancy well below the national average. The majority of supply delivered since 2017 has been in the Near West End, although construction activity is picking up in the CBD Submarket. The office market's strong performance is largely thanks to new employers relocating to RVA for its central location on the East Coast, workforce talent, low cost of living, and business-friendly environment.
The market is largely in favor of the Landlord and we are seeing a continued upward pressure on rents in the market.Across the Richmond MSA, large blocks are experiencing the most constrained availability. There is a substantial amount of small/medium sized vacancies available.
Henrico will be the beneficiary of the continued boom in Scott's Addition, with the creation of "Scott's Addition 2.0" where planners are making preparations to capture expected spillover from the city’s hottest neighborhood. Those include designating the corridor as a “special focus area” in the county’s 2026 Comprehensive Plan, establishing an overlay district that would provide flexibility with existing zoning requirements, revise the county’s parking rules to allow for shared parking, and amend the zoning ordinance to allow residential development in areas of the corridor zoned for industrial or business use.
Total deliveries have been limited lately but may pick up over the next couple of years. Several large projects have been proposed in Richmond,
one of which broke ground in 2017—Dominion Resources' 20-story, 450,000 SF building on the current site of Richmond Plaza, across from the utility's current headquarters. Other proposed projects including Kinsale Insurance at Moorefield, Libbie Mill, Highwoods Tower in Innsbrook, Northshore Commons, and a 200,000 SF building at Sauer's new development will all need some pre-leasing activity before they come out of the ground.