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Richmond: Economy/Business/Real Estate


wrldcoupe4

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  • 2 weeks later...

4 hours ago, Icetera said:

As of Q1, the CBD was at 10.4% vacancy with 1.1 mil. SF (entire metro is at 7.6%, compared to 8.8% last year).

http://www.cushmanwakefield.com/en/research-and-insight/unitedstates/richmond-office-snapshot/

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If I'm not mistaken, 10% and below would warrant additional office space to be built.  If that is the case, a developer might just seize the opportunity!

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While looking for a listing of vacancies by city I came across this.  Downtown averages are at 10.7% (0.3% greater than Richmond) and Richmond is among those with the greatest improvements:

"Vacant space in the U.S. office market rose modestly during the first quarter of 2017 (Q1 2017) to 13.0 percent. The 10 basis points (bps) increase was attributable to increased office supply, according to the latest analysis from CBRE Group, Inc.

The vacancy rate in suburban markets increased by 10 bps, to 14.2%, while downtown vacancy also increased by 10 bps, to 10.7%. Despite the quarter’s overall increase, vacancy continued to fall in nearly half of the U.S. office markets, and the national office vacancy rate remains near its post-recession low."

"The largest quarterly declines in vacancy were recorded in Kansas City (150 bps), Wilmington, DE (120 bps) and Tulsa (100 bps). Albuquerque, Tucson, Orlando, Las Vegas and Richmond, each declined by 70 bps or more."

https://www.cbre.com/about/media-center/q1-2017-office-vacancy

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All good information. The challenges for new buildings:

- No developer will secure financing for speculative office development in downtown Richmond. Any new project will require a major anchor tenant.

- There is a huge delta between existing product Class A rents ($22-$25 per s.f.) and new construction rents which have been $37+ per s.f. It will require more companies willing to pay that kind of premium (30+%) to be in space downtown.

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10 hours ago, wrldcoupe4 said:

All good information. The challenges for new buildings:

- No developer will secure financing for speculative office development in downtown Richmond. Any new project will require a major anchor tenant.

- There is a huge delta between existing product Class A rents ($22-$25 per s.f.) and new construction rents which have been $37+ per s.f. It will require more companies willing to pay that kind of premium (30+%) to be in space downtown.

Both are very good points!  I knew that developers would not build speculatively and the price per sq foot is steep for new construction (thanks for the dose of reality).  BUT, since there is an ongoing renaissance of the downtown area with many more people and companies looking to be downtown, there very well could be interested companies out there who would pay the premium price to be in a location that is becoming one of THE places to be in the Richmond metro area.  It's just hard to tell what interests are out there without being privy to the hard data.  It does make me wonder if there are any companies currently considering making such a move or have inquired about making such a move to the downtown area in new digs.  Makes me wonder what the interest level is like.  Maybe no one is asking or thinking about it...who knows?

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Slow day today. Didn't know this but apparently Thalhimer (the real estate group) does multi family market quarterly reports. I always read their office, industrial and retail reports. Now they do multi family, just thought it was interesting

https://www.thalhimer.com/marketwatch/market-reports/richmond-va

Edited by RVA-Is-The-Best
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  • 1 month later...

Huge plans for a massive data center in the eastern part of henrico. This could be huge as it could create hundreds of jobs and could help spark development in the east end which has been relatively small compared to the western suburbs.

http://richmondbizsense.com/2017/08/17/code-named-project-eyes-1m-square-foot-data-center-in-henrico/

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2 hours ago, blopp1234 said:

Huge plans for a massive data center in the eastern part of henrico. This could be huge as it could create hundreds of jobs and could help spark development in the east end which has been relatively small compared to the western suburbs.

http://richmondbizsense.com/2017/08/17/code-named-project-eyes-1m-square-foot-data-center-in-henrico/

Data centers have huge potential for Richmond as they bring in many tech jobs - exactly what Richmond needs!  Let's hope this is a good, large project!

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15 hours ago, wrldcoupe4 said:

Project "Echo" ? Sounds like Amazon Web Services to me. Curious to see who it ends up being 

Given Amazon's addition of a third warehouse in the region, that seems very plausible.

Edited by Icetera
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  • 2 weeks later...
12 hours ago, Downtowner said:

Looks like chesterfield is looking to build a new industrial megasite. This could produce a lot of jobs in the region.

http://www.richmond.com/business/local/chesterfield-county-eda-wants-to-buy-acres-and-create-new/article_6d822933-ece0-5ec8-9322-70b353bbc490.html

With the Governor there in attendance, I wonder if there is a major company waiting to come to the Richmond area but not anywhere to put them...until now.  They seem so sure that this is going to land something big that this is virtually a done deal - there is too much money going into this to just be a speculative move on the part of the county.  Does anyone else get this same feeling?  The Governor even said that he was "confident" that he will be able to return from 3 upcoming trade missions with a major announcement.  Maybe there's already a company identified and now they're just paving the way to actually land the deal.  Just the sense I get when I reflect on this announcement.  Perhaps I'm reading into it too much.

If I'm correct, this could be HUGE!

Edited by eandslee
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  • 2 weeks later...

Although I can't see full user comments anymore on Richmondbizsense, what I can see are the start of comments on the front page. There is a comment from a local real estate tycoon named Bruce Milam who says this regarding this really large proposed data center:

"This one will blow some minds when the user is disclosed.  The face of the region will change dramatically..."

And it just ends there. Why are we not allowed to see comments on Richmondbizsense anymore?  Dumb.  Anyway, his comment has me excited and leads me to believe the suspicion that this very well could be a data center for someone huge like Amazon!

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  • 2 weeks later...
10 minutes ago, Shakman said:

Altria making some news.  Article is two weeks old:

https://richmondbizsense.com/2017/09/13/altria-eyes-hq-expansion-reynolds-crossing/

 

 

This is great...just wished they had originally settled on a place downtown.  Just imagine a nice, shiny Altria tower!  But to no avail...they are in suburban Henrico.  

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