Richmond, VA – August 1, 2017 – CBRE|Richmond’s quarterly Industrial MarketView report provides a comprehensive look back at the Richmond area industrial real estate market, notable developments and economic and business news driving overall market activity. CBRE|Richmond defines the Industrial Market as both Single and Multi-Tenant properties larger than 10,000 sq. ft.
Richmond’s industrial supply and demand imbalance continued to widen in Q2 2017 following a 66.7% surge in the users in the market over the prior year. This imbalance has created an environment highly favorable to landlords as Richmond’s scarce supply has given them the negotiating leverage to drive up same building asking rents by an average of 2.7% over the year.
The supply and demand imbalance is likely to narrow in the coming years as the development of speculative (spec) product continues to pick up. Despite the surge in the Richmond’s spec pipeline, the total product under construction fell in Q2 2017 following two major deliveries. With industrial demand showing little sign of abating, and development pipeline that is still not matching demand we anticipate that there will be a shortage Richmond’s modern warehouse supply for the foreseeable future. This will continue to pose a challenge for tenants whose options remain sparse.
For more information, please see the Market Report.
About CBRE – Richmond
CBRE|Richmond is a CBRE, Inc. affiliate office serving the Central Virginia region. The firm assists real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. In 2016, the Richmond office completed 448 lease transactions encompassing 3.9 million square feet totaling $240 million, and 90 sales transactions valuing $459 million. For more information about the Richmond office, visit our website, www.cbre.com/richmond.
About CBRE in the Mid-South Region
CBRE is the only global real estate services firm with offices in Norfolk, Newport News, Richmond, Charlottesville, and Fredericksburg, VA, and Raleigh and Greensboro, NC. These offices are collectively referred to as the Mid-South region. The CBRE Mid-South offices (excluding Northern Virginia and Charlotte, NC offices) completed $3.2 billion of sales and leasing transactions in 2016.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.