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Dominion Resources: New High-rise Building Planned for Downtown

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Dominion won't care about dropping a glut of office space on the market. Riverfront and James Center still have a ton of vacancy to backfill. There likely will be other large block space(s) coming back to the market soon...

It's interesting because the trend nationally is that CBD markets have tightening vacancy, rising rents and new construction due to demand. Unfortunately, Richmond is bucking the trend. I'm sure the gross receipts tax that is triple the rate charged in the counties has nothing to do with it...

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It's interesting because the trend nationally is that CBD markets have tightening vacancy, rising rents and new construction due to demand. Unfortunately, Richmond is bucking the trend. I'm sure the gross receipts tax that is triple the rate charged in the counties has nothing to do with it...

Interesting, I guess appearances are deceiving. I was just driving through downtown this morning noting how many buildings are being renovated. Definitely seems like money is being put into the CBD but maybe stats say otherwise.

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Interesting, I guess appearances are deceiving. I was just driving through downtown this morning noting how many buildings are being renovated. Definitely seems like money is being put into the CBD but maybe stats say otherwise.

Most of those renovations are for apartments, believe it or not.  

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Yeah a ton of class B and C buildings have been converted. James Center and Riverfront have huge blocks of space. Our downtown class A has higher vacancy than the suburbs which is a contrast to many other markets nationally. Maybe if the gross receipts tax wasn't 3xs higher in the city than the counties...

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Amen to that!  And why is it that city leaders don't see that? I mean if you lower your tax rate, it appears as if you will lose money, but the fact is that if you significantly lower your rate, more businesses come in making up for the lost tax revenue when the rates were lowered. It's not that difficult to understand. Simple economics really. It's frustrating to me to watch Richmond continue to defeat itself. 

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What are the business Tax Rates for the city vs the adjacent counties?  I did a quick look on line and it's not that clear or that easy to verify, though I could be looking incorrectly. The city taxes more because of the following - is this accurate - I feel like I've heard this argument before.

A few things that make a difference when comparing the city vs the county(s)

  •  a large portion of the population that live in the city have lower home prices = lower taxes, many are just poor.
    • Henrico & Chesterfield - homes and incomes of all ranges & shopping = $
    • young live in the city - leave when they marry and make the most money and it stays in the county.
    • Richmond City - 214K people
    • Chesterfield - 328K people
    • Henrico - 319K people
  • do city, state gov't & universities pay tax?
  • apartments (RIC) vs ownership (counties)
Edited by hikendesign

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Just a question, what is the square footage of dominions current tower?

One James River Plaza:  433,920 above ground; 258,894 below

8th & Main: 341,760

per city records

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One James River Plaza:  433,920 above ground; 258,894 below

8th & Main: 341,760

per city records

Thanks for the info. Ive been looking at some buildings that fit the description of what their looking for and I found that One Tampa Center fits the description pretty well. It also has the square footage that dominion currently has in its  two buildings, it's just combined into one tower. Tell me if you guys think this is pretty accurate.

 

https://en.m.wikipedia.org/wiki/One_Tampa_City_Center

Edited by blopp1234
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Thanks for the info. Ive been looking at some buildings that fit the description of what their looking for and I found that One Tampa Center fits the description pretty well. It also has the square footage that dominion currently has in its  two buildings, it's just combined into one tower. Tell me if you guys think this is pretty accurate.

 

https://en.m.wikipedia.org/wiki/One_Tampa_City_Center

They also have the Tredegar campus (3 buildings) and the GRTC Bus Depot campus that may be relocated as well.  I keep forgetting to throw all of the square footages up here so hopefully I will remember tonight.

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Well I found out an interesting tidbit regarding dominions new high rise. My cousin who works downtown for a marketing firm in manchester had heard from a friend of hers that dominion is supposed to be picking there construction team for the new high rise in December so who knows maybe sometime in December we could learn more about it.

Sent from my iPhone using Tapatalk

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Given Dominion's security requirements, I would be surprised if they had any interest in sharing their building with anybody.  

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17 hours ago, Downtowner said:

Wonder what it would be like with the news about Carmax today if Dominion would be interested in adding Carmax as a tenant in Dominion's new tower.

The security requirements from jbjust is probably true, but I like where you are going with that idea.  I'm really hoping an announcement comes out soon on this.  I really would like to see some details.  This thing has been in the works for a while now (even about a year before the announcement last May).  I just hope it doesn't disappoint.  Come on Dominion and pull off something amazing!

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There is a huge glut of space in James Center and naming rights are available for the building.  If CarMax needs a significant amount of space in the next year, that is the obvious place for them to go. 

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We'll... That's more an exception to the rule, isn't it? Rarely does the anchor tenant turn down signage. TowneBank is the 2nd largest tenant. If Carmax took 20k s.f. and they have 250,000 s.f. available in a bldg, then it's unlikely Carmax gets signage because the landlord will want to hold on to the signage rights for a much larger user.

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Signage rights aren't that important to professional services firms (e.g., law firms and accountants).  It's seen as a little tacky, honestly, for anybody other than consumer-oriented businesses.  There are big tenants in James Center 1 that don't want the rights -- Dixon Hughes and Davenport -- so taking 2-3 floors of that building would be more than enough to snag the naming rights.  

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We'll have to agree to disagree, since it runs contrary to the desires I witness between many tenants and landlords. Some companies don't care about it, some very much so (including professional services firms). In any case, I wouldn't mind seeing their name downtown. 

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1 hour ago, wrldcoupe4 said:

We'll have to agree to disagree, since it runs contrary to the desires I witness between many tenants and landlords. Some companies don't care about it, some very much so (including professional services firms). In any case, I wouldn't mind seeing their name downtown. 

My only point is that if they moved in to James Center 1 and took a couple of floors, there wouldn't be another tenant in the building that both (a) could conceivably want naming rights; and (b) has a stronger claim on naming rights than CarMax.  

 

 

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