Richmond: Economy/Business/Real Estate

[wrldcoupe4]

It's actually not bad - only 16% vacant which is better than the overall class B vacancy downtown.

Are you sure that is current?

I see that it's listed as having 84% occupancy, but with VITA's move to the new facility in Meadowville, the Richmond Plaza building should have significant vacancy.

[CommRE]

Nope, not sure that is current or whether it takes that move into account.

[thatguy]

Richmond Home sales down 20%, much worse than the national average of 8%

http://www.inrich.com/cva/ric/news.apx.-co...10-24-0200.html

[ric75]

Richmond Home sales down 20%, much worse than the national average of 8%

http://www.inrich.com/cva/ric/news.apx.-co...10-24-0200.html

Perhaps this will cool prices (which have been steadily increasing) down a bit and allow me to enter into the market! There's already a surplus and considering the new mega-developments going on in the exurbs, I would think prices will have to be corrected a bit.

[burt]

Perhaps this will cool prices (which have been steadily increasing) down a bit and allow me to enter into the market! There's already a surplus and considering the new mega-developments going on in the exurbs, I would think prices will have to be corrected a bit.

I may be misinterpreting news stories, but the National drop in September of 8% reflects sales of existing homes only, while the 19.7% drop in Metro Richmond reflects sales on new AND previously owned homes in September.

I'm going to try to post both stories from today's inRich, and with my imeptitude, it may have to be done in two separate postings.

Here's the National story from today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-25-0078.html

[burt]

And here's Carol Hazard's inRich story on the 19.7% drop in sales of new and previously owned homes in the local market. From today's inRich:

http://www.inrich.com/cva/ric/news/busines...10-25-0081.html

[burt]

Here's an interesting prospect for Richmond's Biotech Park as described today at inRich:

http://www.inrich.com/cva/ric/news/busines...11-04-0129.html

[burt]

I finally got the time to look at, study and really enjoy a map smaller than a cell phone of Richmond's downtown area. It fits in the palm of your hand and when unfolded, is probably the best Richmond directory to everything from museums, theatres, retail and restaurants that I've seen.

It's called VENTURE OUT -- a guide to Downtown Richmond -- "A wealth of restaurants, art galleries, shops, parks and attractions are just a walk away."

You all know how restaurants and entertainment complexes top my list. Well, this handy little guide is right up to date.

Get yourself one and stick it in your vest pocket for handy reference. It is a co-production of Venture Richmond and Phillip Morris USA and I suspect someone we know (initials gj) had a lot to do with producing it.

Edited November 4, 2007 by burt

[burt]

Richmond is a "hot" ad agency locale and Martin leads the way:

http://www.virginiabusiness.com/edit/magaz...v07/cover.shtml

[journiyin]

Last week, while taking the Washington/Rochambeau road (very pretty drive, incidentally, and lightly traveled) from US 301 south of Hanover Courthouse toward Williamsburg, we passed a large vineyard in New Kent County, but I don't remember its name.

There are really only two vineyards in New Kent... one I cant remember the name (and I do believe it is the one you are thinking of) and the other is Farms of New Kent.

[burt]

Concerns about affordable housing continue. From today's inRich:

http://www.inrich.com/cva/ric/news/busines...11-10-0144.html

[burt]

Greg Gilligan tells us today in his inRich column that Elwood Thompson's (now called Local Market rather than Natural Market) is expanding into the old High's building, until recently known as BLUE FOX CAFE. The 1600 s/f store is across the parking lot from the main store and will be used as an auxiliary kitchen for Elwood Thompson's expanding prepared-food business. Eventually, it might be used as a restaurant and catering, or retail.

Elwood Thompson's is Richmond's premier "organic" food store adjacent to Carytown at the end of Elwood Avenue (the extension of West Main Street) and Thompson Street, a location which gave the store its name. The intro of Fresh Market in the Richmond scene apparently has not made much of a dent in ET's sales.

[wrldcoupe4]

NBC12 is being sold by Lincoln Financial Group to Raycom Media. This will become interesting because Raycom already owns WTVR6 and the FCC likely won't allow 2 stations in the Richmond market to be owned by the same company.

[BGW]

Elwood Thompson's is Richmond's premier "organic" food store adjacent to Carytown at the end of Elwood Avenue (the extension of West Main Street) and Thompson Street, a location which gave the store its name. The intro of Fresh Market in the Richmond scene apparently has not made much of a dent in ET's sales.

Ellwood's & Fresh Market really don't have that much overlap in products. Ellwood's tends to have local and organic foods. Fresh Market has some organic goods, but most of their stuff tends more towards high-end natural foods (and, yes, there's a significant difference between "natural" and "organic").

Whole Foods, on the other hand, will be in direct competition. I suspect that's why Ellwood's is playing up the local connections (as they should).

[Shakman]

NBC12 is being sold by Lincoln Financial Group to Raycom Media. This will become interesting because Raycom already owns WTVR6 and the FCC likely won't allow 2 stations in the Richmond market to be owned by the same company.

Why is that? (FCC would not allow two stations to be owned by the same company in the same market.)

Not to argue, but just curious.

[D_C]

Why is that? (FCC would not allow two stations to be owned by the same company in the same market.)

Not to argue, but just curious.

It falls under the anti-trust legislation. Owning 2 television stations in the same market area is considered a duopoly and is illegal. I do believe that Clear Channel had some problems with owning too many radio stations in this market area at one time. I am not exactly sure what they did to overcome that.

BTW, yes, I was just kidding about that "damned Bush economy" on the other post. Anyone driving down the highway need only look into other vehicles and see all the gadgets and gizmos that kids have in the back seats. "A television on every headrest" is today's "A chicken in every pot".

[Shakman]

It falls under the anti-trust legislation. Owning 2 television stations in the same market area is considered a duopoly and is illegal. I do believe that Clear Channel had some problems with owning too many radio stations in this market area at one time. I am not exactly sure what they did to overcome that.

BTW, yes, I was just kidding about that "damned Bush economy" on the other post. Anyone driving down the highway need only look into other vehicles and see all the gadgets and gizmos that kids have in the back seats. "A television on every headrest" is today's "A chicken in every pot".

Did not know that was illegal. Learning is always good. Thanks.

[burt]

Here are a couple of items I gleaned from today's Commercial Notes on the Business page of inRich:

Pollard & Bagby Inc. reports the sale of 1106 W. Franklin St., 11,497 square feet; 1108 W. Franklin St., 12,915 square feet; 1107 W. Grace St., 10,865 square feet; 1121 W. Grace St., 10,784 square feet; and 1123-27 W. Grace St., 19,218 square feet: to Campus Holdings for $7.3 million from the Estate of Donald Waybright.

(That's a total of more than 65,000 s/f. What do you suppose it portends)?

Also this item, which apparently verifies work that we know is underway:

36,000-square-foot building at 2700 E. Cary St. to The Power Plant at Lucky Strike LLC for $1.155 million from Sewan Enterprises LLC.

Edited November 18, 2007 by burt

[wrldcoupe4]

Rolls Royce to build turbine factory in Richmond Region

Turbine maker Rolls-Royce Group PLC plans to open a plant in Prince George County that will create hundreds of jobs, Gov. Timothy M. Kaine is expected to announce today.

Kaine has scheduled a news conference for 11:25 a.m. to announce what officials describe as a major business investment for the region and the state.

State and local officials would not comment yesterday, but sources familiar with the matter said that the plant could create about 600 jobs and be worth $600 million. Sources didn't identify the type of manufacturing.

The company, which makes turbines for aircraft engines and industrial uses, has been considering a site in Prince George for about a year, sources said.

[Downtowner]

Wow this is great news. I wonder if this will ever result in having a Rolls Royce Dealership here in Richmond. Id love to get more exotic car dealerships here in Richmond.

[wrldcoupe4]

Completely different companies. The car company is a subsidiary of BMW.

[eandslee]

Dude! What a major boost to the southern portion of the metro area! Having a Rolls Royce factory down there is HUGE! Many aircraft engines are made by Rolls Royce and its reputation is well, you know...great! Many airlines could be depending on folks in the Richmond area to make their planes fly! Sweet news! This is so close to the Fort Lee area...I'm never going to recognize that area again when I come to visit!

[wrldcoupe4]

Here's a more comprehensive story:

Richmond area lands Rolls Royce turbine factory

Turbine maker Rolls-Royce Group PLC plans to open a plant in Prince George County that will create hundreds of jobs, Gov. Timothy M. Kaine is expected to announce today.

In a news release on its Web site this morning, Rolls-Royce said it plans to invest in two new airplane engine factories, one in Singapore and the other in Prince George County. The company had earlier announced it was looking at sites in Asia and the United States for manufacturing plants.

Rolls-Royce said it will spend 150 million British pounds, the equivalent of $308 million, on the two facilities over the next five years. The company said it plans to have the Prince George plant fully operational by the end of 2009.

The company said that the Commonwealth of Virginia and Prince George County will provide economic incentives to support the project, which will create about 500 jobs.

Details on what will be produced:

Rolls-Royce's Virginia plant will assemble and test the RB282, an engine chosen by Dassault to power its new super midsize corporate jet. It is potentially the first in a family of small engines for corporate and regional jets, Rolls-Royce said.

Development and testing of the engine will occur in the United Kingdom.

The Prince George facility could potentially make the F136 engine for the Joint Strike Fighter. The plant will also be available for future advanced manufacturing activities as well, the company said.

[burt]

And here's still another story on the Rolls-Royce plans for Prince George. But I don't see any information in any of the news stories about where in the county the plant will be located.

http://www.inrich.com/cva/ric/news/busines...11-20-0151.html

[burt]

Greenville, SC walked away from negotiations with Rolls-Royce when they learned the project would be split between a location in the US and Singapore. They wanted all or nothing. Virginia pursued its bid and won out for the US portion, though at considerable cost. Certainly, Rolls-Royce Headquarters in Chantilly must have had some bearing on the decision.

It's a quality company. Initial hires will be about 300 less than hoped, but future expansion and the luring of supporting companies will boost job levels and the area economy. Average pay will be about $48,000.

I'd still like to know where it is going to be built in Prince George.

Didn't Norfolk/Southern recently decide to build a huge railway yard in the county?

Not to mention the staggering effect the enlarged Fort Lee will have on Prince George.