Q4 2018 Richmond Industrial Research & Forecast Report

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South of downtown, Panattoni Development cut the ribbon on Virginia I-95 Logistics, its 461,700-square-foot spec warehouse. Just before New Year’s, Brother International leased the full building with a Q1 2019 commencement. Brother’s lease is a relocation from a facility in New Jersey, and the retailer cited better positioning for its East Coast distribution, immediate access to I-95 and the Richmond Marine Terminal (RMT) and overall cost savings.

In 2018, Richmond saw 1.7 million square feet in deliveries including distribution facilities for Aldi, Pepsi and FedEx. The year saw ten starts totaling 2.1 million square feet, including spec highaby projects with Panattoni, Becknell, Devon USA and Brookwood Capital Partners totaling 1.2 million square feet. The 2.8 million total square feet of highbay product delivered and under construction at the close of 2018 will equate to a 13% expansion in Richmond’s highbay inventory.

The Richmond market continued to favor warehouse owners as the fourth quarter’s 3.3% vacancy rate capped the eighth straight year of demand outpacing supply. With mounting interest from large national occupiers, demand volume reached 5.6 million square feet in market requirements, and the current pipeline could support unprecented net absorption. Users seeking to optimize supply chains and cut costs should continue to buoy fundamentals in 2019.

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Q4 2018 Richmond Industrial Research & Forecast Report

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