Q32020 Richmond Office Market Report

Download Report
AdobeStock_113319868

 

Key Takeaways

  • As businesses continue to transition from the impact of the COVID-19 pandemic, there has been an increase in sublet space available in the market. In Q3, 592,897 square feet of space was available for sublease in the market. This is a 4.7%increase from the 566,419 square feet of available sublet space in the market at the close of Q1. 42% of those sublet spaces are for spaces fewer than 5,000 square feet, with an additional 24% between 5,000 and 10,000 square feet. Overall, sublease availability remains substantially less than other markets.
  • Tenant requirement volume for Q3 totaled 1,600,000 square feet, down 33.9%quarter-over-quarter. Contributing to this decrease is a record 642,100 square feet of product that closed over the quarter, but also a record 653,800 square feet of demand that was dropped. CoStar Group’s $20 million purchase at 600 Tredegar St and planned build-to-suit fulfilled their 400,000 square foot requirement, contributing to the decrease. After months of mulling over how to proceed during these unpredictable times, tenants are starting to make decisions. Those companies which have shifted their workplace strategies already are committing to decisions, but others are considering short-term renewals, or holding off until the economy stabilizes, and their future needs are clearer.

AdobeStock_113319868

Q32020 Richmond Office Market Report

Download Report
Related Experts

Joe Marchetti

Managing Director

Richmond - North

Joseph Marchetti has over 34 years of experience in the real estate brokerage, asset services and corporate advisory services business. As Managing Director of the Richmond office, Joe is primarily responsible for leading the brokerage and asset services teams to be the top performers in the local market. Additionally, he is responsible for overseeing the offices in Charlottesville and Fredericksburg. Joe has consistently been one of the top producers in the Richmond market focusing on the office, office/flex and industrial product types. He has leadership and management experience in all phases of commercial real estate: marketing, development, site selection, leasing and sales. Real estate owners and investors seek his management and leasing value upon disposition. Joe has developed a team of bright, competent, friendly, trustworthy people who are capable of developing positive, long-term relationships with our customers. Joe specializes in landlord representation, and land sales in office and industrial properties in Richmond, VA.

View expert

David Wilkins

Executive Vice President

Richmond - North

With 18 years of experience in the commercial real estate industry, I have acquired a diverse skill set to develop and implement real estate strategies to maximize my customers’ success.  Throughout my career, I have guided owners, occupiers and developers of commercial real estate to create solutions congruent with their short- and long-term business goals.

I have experience as a single point-of-contact providing complete transaction management and consulting services for my customers. I am fully committed to the customer to ensure smooth transition between project phases while leveraging resources for a direct impact to the bottom line and the success of each project.

View expert

Thomas Vozenilek

Executive Vice President

Richmond - North

Tom Vozenilek joined the firm 2001 with 23 years of commercial sales and leasing experience. Tom's principal activity for the last 30 years has been Transaction Management. He was part of the original team at Virginia Landmark that started Tenant/Buyer Representation in the Central Virginia Market in 1986. Tom’s clients have included state agencies, universities, Fortune 500 corporations and a variety of regional and local firms.

Previously, he was Partner and Senior Vice President of Virginia Landmark.

View expert

Matt Anderson

Executive Vice President

Richmond - North

Matt joined the firm in 2006 as a junior agent with no previous real estate background, learning the business from the ground up. He quickly became an integral part of the brokerage team representing owners and occupiers of office and industrial properties. 
Matt’s role as a strategic advisor to the businesses he works with has evolved into a passion for regional prosperity. He has had the opportunity to be a part of some exciting real estate transactions that have created significant employment opportunities in the community. Since 2006, he has negotiated over 650 transactions valued at over $500 million involving government agencies, national corporations, REITs, medical practices, and local businesses and developers. 
In 2017 Matt earned the SIOR designation (Society of Industrial and Office Realtors®). This designation is a professional symbol of the highest level of knowledge, production, and ethics in the real estate industry. To ensure he keeps current with real estate trends and practices, Matt attends conferences and is an active member of various industry associations. Matt takes great pride in his teamwork, communication, and the highest level of customer service. 
Matt provides the following services to his clients with a strong emphasis on teamwork, communication, and the highest level of customer service: 

  • Market Evaluation
  • Lease Renewal vs. Relocation Analysis
  • Disposition Strategy/ Execution
  • Lease/Purchase Agreement Negotiation Support
View expert

Malcolm Randolph Jr.

Senior Vice President

Richmond - North

Malcolm Randolph is a real estate advisor with a focus on the leasing and sales of office and healthcare properties.  Within his area of expertise, Malcolm advises both property owners and companies to assist them make informed, strategic real estate decisions. 

Malcolm has extensive experience developing and executing real estate strategies in Richmond and across the United States for clients ranging from small, local firms to Fortune 500 companies. He and his team guide their clients by offering a range of services including lease transactions, sales, project management, move management, lease administration, lease audit and portfolio strategy.

Malcolm is a founding member of the Richmond office's Medical Advisory Group. He and his team focus on assisting medical practices and medical property owners evaluate their real estate needs and execute strategies to help them meet their goals.  Malcolm and his team’s market share in the medical sector have afforded them unparalleled experience and market data which directly benefits their clients in making the most informed real estate decisions.

In addition to his work with healthcare and office occupiers, Malcolm has established a successful track record of leasing Class A office properties in the Richmond market.   His clients range from locally based property investors to publicly traded real estate investment trusts (REITs).  In this role, Malcolm and his team advise their clients on the repositioning, renovation, marketing and leasing of a variety of office assets. 

A native of Richmond, Malcolm began his career in the commercial real estate industry in 2003 with the same firm that became Colliers International Virginia in 2019.  He was elected as a principal of the firm in 2011. 

View expert