The Richmond VA Industrial market ended the fourth quarter 2017 with a vacancy rate of 4.0%, down over the previous quarter. Net absorption was 187,686 square feet. Rental rates ended the fourth quarter at $4.75, an increase over the previous quarter.
Tech giants Facebook and Amazon led the pack this year, with Facebook breaking ground on its one-billion-dollar data center in Henrico on Oct 5. The county has taken steps this year to attract other data centers by dramatically reducing its tax rate on computers and equipment. Amazon, benefitting from the rise of e-commerce, has become a growing presence in Richmond - now with a total of five distribution and fufillment centers across the market.
Industrial product remains scarce and while the demand for spec space remains high; there just is not enough product. In 2017, three spec buildings ended up being pre-leased. A handful of industrial projects are expected to deliver in 2018/2019.