Richmond: Economy/Business/Real Estate

[burt]

It appears to me that Richmond has plenty to worry about.

Circuit City, Car-Max and Genworth Financial are among big local companies with major problems, and now, Qimonda is teetering on disaster.

From today's inRich:

http://www.inrich.com/cva/ric/news/busines...09-30-0028.html

Could Richmond, home to one of the 12 Federal Reserve Banks, possibly attract major back-office expansion of Citigroup? Who is out there selling the area and how hard are they working?

[wrldcoupe4]

It sounds like Genworth is fundamentally stronger than its competitors, but it's been hurt by being guilty by association. Circuit City looks to be in dire straits and the Qimonda news doesn't sound good at all.

[Downtowner]

God I hope we dont become like Buffalo new york where everything is so depressing. I also hope that Charlotte doesnt become another pittsburgh. I feel for Charlotte.

[burt]

The Scott Bass story in the current Style Weekly is rather upbeat despite the tanking economy.

According to a real estate mogul, State and VCU acquisitions downtown, such as property at 600 East Main and the 25-story tower at 9th and Main will have displaced tenants seeking space elsewhere. Bass quotes Mark Douglas, senior vice president of commercial real estate at Thalhimers, thusly: "...the downtown marketplace now is actually stronger than the suburbs."

Others suggest that these former center city tenants may flee to the suburbs.

The downtown condo market is doing better than one might expect.

Here is the Style Weekly story:

http://styleweekly.com/article.asp?idarticle=17835

[burt]

David Ress at The Times Dispatch tells us how banking used to be on Richmond's Main Street in the halcyon days of yore:

http://www.inrich.com/cva/ric/news.apx.-co...10-05-0227.html

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BUT... will this breaking news from today's inRich alter the picture? Would a Citigroup presence be better for Richmond than Wells Fargo?

http://www.inrich.com/cva/ric/news.apx.-co...10-05-0246.html

Edited October 5, 2008 by burt

[Shakman]

Well folks... It appears that Wells Fargo will aquire Wachovia.

Inrich article:

http://hosted.ap.org/dynamic/stories/W/WEL...-10-10-11-12-07

[TBurban]

Well folks... It appears that Wells Fargo will aquire Wachovia.

Inrich article:

http://hosted.ap.org/dynamic/stories/W/WEL...-10-10-11-12-07

Unbelievable, that was my old bank in Houston before I moved here and switched to Wachovia.

[burt]

Wells Fargo now owns Wachovia.

Michael Jones of Riverfront Investment Group is quoted thusly: "I believe this is a phenominally good thing for the Richmond area."

Is Jones implying investors will be safe and that the local banking status quo will not change radically? Or is he hinting that Richmond will become more prominent in the banking industry with this merger?

From today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-11-0066.html

Edited October 11, 2008 by burt

[wrldcoupe4]

Big blow to the region

Qimonda Cutting 1,200 Jobs at Sandston Facility

[burt]

Qimonda, the huge chip maker in eastern Henrico, may be bought up by Micron in Boise, Idaho.

From today's inRich:

http://www.inrich.com/cva/ric/news.apx.-co...09-16-0181.html

2:45pm Monday, October 13th '08:

Since today's news of large job cuts at Qimonda, I wonder if Micron in Boise is still interested in acquiring the company? Maybe Micron would restore workers' jobs in Sandston.

Does anyone remember when Motorola promised to build a huge chip plant in West Creek? I may be wrong, butI think it was that promise which spurred the building of West Creek Parkway.

[Cadeho]

Yes. Can you imagine... back then I had no objections to West Creek? I still don't... although I do wish my company would relocate downtown.

[burt]

Here's some interesting news and speculation from Richmond dot com.

Is newly relocated Wachovia Securities in trouble?

Did you know women make more in Richmond than their sisters in Hampton Roads?

http://www.richmond.com/business/25696

[HopHead]

Wells Fargo now owns Wachovia.

Michael Jones of Riverfront Investment Group is quoted thusly: "I believe this is a phenominally good thing for the Richmond area."

Is Jones implying investors will be safe and that the local banking status quo will not change radically? Or is he hinting that Richmond will become more prominent in the banking industry with this merger?

From today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-11-0066.html

Not sure what this means for Richmond. Regardless, I think Wells coming in instead of Citi is a win-win for everyone on the East Coast. Citi was pretty much intent (regardless of what they said publicly) on dismantling what Wachovia had and just sucking up their deposits to bolster themselves. Interesting point though Burt is what may happen with Wachovia Securities. Would not be surprised if Wells sold that off as they aren't big fans of the IB business like you said.

[burt]

dbull, thanks for your comments above re: Wells Fargo.

This, I'm sure, will interest you since its your turf:

We've all been speculating about the importation by Phillip Morris of some 2,000 workers to Richmond from Carolina.

Here's an announcement that property management firm Jones Lang Lasalle has been retained by PM to sell the large plant near Charlotte.

(Who knows? If things don't improve at Qimonda, Jones Lang Lasalle may be called on to sell their property!)

From today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-15-0073.html

[burt]

More wrangling over the fall-out of the Wachovia/Wells Fargo affair. Will BB&T benefit? Will Richmond benefit?

From today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-18-0064.html

[burt]

The Richmond region's diversified employment base is not driving the economy as much as many had hoped. It ranks behind Northern Virginia as well as Hampton Roads.

There are grim times ahead caused by the cumulative effect of layoffs.

From this morning's inRich:

http://www.inrich.com/cva/ric/news.apx.-co...10-19-0176.html

On the other hand, employee involvement and deterrmination can turn things around as it has done at Belden, Inc. in Chesterfield:

http://www.inrich.com/cva/ric/news/busines...10-19-0091.html

Edited October 19, 2008 by burt

[burt]

Here are a few items that whetted my interest in The Times Dispatch Building Permits column today:

1.) Hines Riverfront Plaza LP, owner; Century Construction Co. Inc, contractor; 951 E. Byrd St., tenant office, $337,700.

2.) Chesapeake & Potomac, owner; Century Construction Co. Inc. contractor; 703 E. Grace St., alterations $124,000.

3.) Sun Trust, Emerald Construction Co, contractor; 919 E. Main St., tenant fitup/office, $151,545.

4.) Virginia Center, owner. The Emerson Construction Group, contractor, 110 W. Broad St., $158,000.

5.) Church Hill Properties LC, owner; Gammino Realty & Development, contractor; 316 E. Grace St., alterations $215,000.

I wonder if Item #2 is verification that Verizon is preparing a move to 7th and Grace? Previous entries in the Building Permits column have strengthened that supposition.

If I'm not mistaken Virginia Center (#4) at 110 West Broad is next door to Theatre IV.

Is 316 East Grace one of those burned-out store-front houses?

[burt]

Has there been any promising movement on the part of The City, Richmond CenterStage and The State over construction of parking decks at 6th and Grace and 7th and Franklin? Some kind of discussion results was anticipated in September.

[ric75]

Has there been any promising movement on the part of The City, Richmond CenterStage and The State over construction of parking decks at 6th and Grace and 7th and Franklin? Some kind of discussion results was anticipated in September.

It seems to be moving forward. My company was contacted to do a bid for an environmental impact report for that site.

[burt]

It seems to be moving forward. My company was contacted to do a bid for an environmental impact report for that site.

That's encouraging. If a garage is built, I wish they would give serious consideration to renting a high-ceiling ground level space with windows fronting Grace Street to one of the local TV stations. It, and perhaps other ground level retail, would provide some income in addition to parking on upper levels. Raleigh has a TV Studio on Fayetteville Street, and downtown Raleigh has far less pedestrian traffic potential than Richmond will after RCStage, M&R, PIE, JM Hotel, Fed CH and Verizon are all up and running.

On an environmental point, ric75: This morning I walked all the way from my doctor's office on East 77th Street along Park Avenue to Grand Central Station. I suppose most in NYCity take the city for granted, but today I looked up at all the co-ops, condos and apartments and was amazed at all the greenery on the set-backs and rooftops of the buildings that form the Park Avenue canyon. South of 59th Street, the buildings are much higher and are predominently offices with less greenery. What I'm getting at is that most of Richmond's flat-topped high and mid rises should be planted.

Edited October 20, 2008 by burt

[jbjust]

I was up on top of the James Center last week and noticed that Sun Trust has a not-too-shabby green roof of their own. No trees, just grass, but it's better than nothing.

[burt]

I was up on top of the James Center last week and noticed that Sun Trust has a not-too-shabby green roof of their own. No trees, just grass, but it's better than nothing.

Many of the 8th floor penthouses at M&R have expansive outdoor terraces. I suspect most of them will be planted in one way or another.

I was surprised at the size of some of the NYCity trees on rooftops. Apparently there's little concern about their being blown off during high winds.

The setback midway up #1 James Center would be ideal for greenery, IMO. I recall when Sun Trust announced "greening" one of its rooftops, but, as you point out jb, few people can see and enjoy it.

[Shakman]

I was up on top of the James Center last week and noticed that Sun Trust has a not-too-shabby green roof of their own. No trees, just grass, but it's better than nothing.

Question: If you were on top of the James Center, how were you able to see the roof of SunTrust?

[jbjust]

Question: If you were on top of the James Center, how were you able to see the roof of SunTrust?

I couldn't see the top of the main tower, but I could see the shorter portion of the tower that is closes to Main, and it has a fairly good-size patch of turf on top.

[wrldcoupe4]

It is on the roof over the lobby, bank branch portion of the building.