Richmond: Economy/Business/Real Estate

[rancenc]

New uses for the former Toys R Us store near Regency Mall!

https://richmond.com/business/work-is-underway-to-redevelop-the-former-toys-r-us-near-regency-mall-for-drug/article_cd8baa0c-ac45-568f-94db-ce61a19c8a26.html

[I miss RVA]

Shopping center in Short Pump just sold to a NY-based group for $46.7M.

https://richmondbizsense.com/2021/09/02/trader-joes-anchored-short-pump-shopping-center-sells-for-46-7m/

[I miss RVA]

This is a very interesting concept and could potentially be another draw for younger folks looking to live in an up-and-coming urban neighborhood like Scott's Addition. I hope this venture really takes off and does well!

https://richmondbizsense.com/2021/09/20/richmond-regions-first-dog-park-bar-opening-near-scotts-addition/

[I miss RVA]

It will be interesting to see what becomes of this building in Manchester. From the Richmond Times-Dispatch:

https://richmond.com/business/rrha-is-not-buying-the-suntrust-mortgage-building-in-south-richmond-building-still-for-sale/article_cc016f6b-b03c-5b66-9af0-a0cedde4be6e.html

[eandslee]

1 hour ago, I miss RVA said:

It will be interesting to see what becomes of this building in Manchester. From the Richmond Times-Dispatch:

https://richmond.com/business/rrha-is-not-buying-the-suntrust-mortgage-building-in-south-richmond-building-still-for-sale/article_cc016f6b-b03c-5b66-9af0-a0cedde4be6e.html

Since it's still tough to find companies looking for commercial space downtown, I can see this sitting empty for a long time...unfortunately.  I can't wait until the downtown area can draw in businesses/large companies like it can currently draw in residents/residential buildings.  Something needs to change to make this happen.  Lower corporate tax rate?  The city needs to clean up its governmental act/capability?  What?  If I were "king for a day," I'd try something.  I'd start with lowering the corporate tax rate.  While on the surface this sounds counter-intuitive, in the long run it would bring in a lot more tax dollars than having a high corporate tax rate because a lot more businesses would move downtown.  More businesses/corporations moving downtown = more taxes - even more than if fewer or no business/corporations move downtown.  Anyway, the chance of that ever actually happening is slim to none with the kind of city leadership we have.  I'm just saying that I'd try it and see what would happen.  I've heard success stories in other cities where this happened.  Just saying.

[Icetera]

6 minutes ago, eandslee said:

Since it's still tough to find companies looking for commercial space downtown, I can see this sitting empty for a long time...unfortunately.  I can't wait until the downtown area can draw in businesses/large companies like it can currently draw in residents/residential buildings.  Something needs to change to make this happen.  Lower corporate tax rate?  The city needs to clean up its governmental act/capability?  What?  If I were "king for a day," I'd try something.  I'd start with lowering the corporate tax rate.  While on the surface this sounds counter-intuitive, in the long run it would bring in a lot more tax dollars than having a high corporate tax rate because a lot more businesses would move downtown.  More businesses/corporations moving downtown = more taxes - even more than if fewer or no business/corporations move downtown.  Anyway, the chance of that ever actually happening is slim to none with the kind of city leadership we have.  I'm just saying that I'd try it and see what would happen.  I've heard success stories in other cities where this happened.  Just saying.

The business tax is at the state level so even if the state were to lower it it would not guarantee businesses relocating to downtown.  The property tax rate, on the other hand, could certainly be a factor, especially with the latest spike in property values.  Even if the property taxes are minor compared to other business costs for the corporates, the drop could encourage even more residential and smaller businesses, thus, enticing larger companies.

[I miss RVA]

1 hour ago, Icetera said:

The business tax is at the state level so even if the state were to lower it it would not guarantee businesses relocating to downtown.  The property tax rate, on the other hand, could certainly be a factor, especially with the latest spike in property values.  Even if the property taxes are minor compared to other business costs for the corporates, the drop could encourage even more residential and smaller businesses, thus, enticing larger companies.

Wow - interesting to see that Chesterfield has surged 8 cents ahead of Henrico. Not that I've ever kept up with suburban property tax rates, but I'm curious if it's always been higher in Chesterfield? Given that Henrico was by and large built up far earlier than was Chesterfield, I've always thought it to be a given that the property tax rate would be slightly higher in Henrico - and I (vaguely) seem to recall that was the case years ago. When did Chesterfield pass them?

[wrldcoupe4]

None of those are the factor eandslee is referencing - it’s the gross receipts tax for professional services which is nearly triple in the city compared to the counties. It can make a big difference and definitely is a factor in location decisions. 

[eandslee]

7 hours ago, wrldcoupe4 said:

None of those are the factor eandslee is referencing - it’s the gross receipts tax for professional services which is nearly triple in the city compared to the counties. It can make a big difference and definitely is a factor in location decisions. 

Thanks for shedding some light Coupe!  I have never heard of this until now (I’m obviously no expert), looked it up and wow…uh, yeah a gross receipts tax is terrible!  No wonder we are seeing few companies move downtown!  Who would want to be subject to such thievery on the business?  Gotta hate government for things like this!  Okay, I change my story - if I were king for a day - I’d get rid of this tax!  Yikes!

[Icetera]

17 hours ago, wrldcoupe4 said:

None of those are the factor eandslee is referencing - it’s the gross receipts tax for professional services which is nearly triple in the city compared to the counties. It can make a big difference and definitely is a factor in location decisions. 

Ouch, it is not just triple but also kicks in $400k sooner than Henrico's.  Given the rate, it seems surprising that we have such large law and advertising industries.  The business personal property tax rates are surprisingly close (Richmond 3.7% vs Henrico 3.5%).

RICHMOND CITY

https://www.rva.gov/finance/business

HENRICO

https://henrico.us/finance/business/businessfaqs/

[I miss RVA]

I wonder -just for the sake of asking - if anyone has EVER floating the idea at City Hall that if they drop that gross receipts tax to be more in line and competitive with the counties that perhaps the city would be much more competitive in terms of getting businesses to relo (or if coming in from elsewhere - to locate) at least to the city and even possibly downtown? It really is possible to tax yourself right out of the marketplace. It would seem to me that wall-to-wall businesses downtown all generating X amount of GRT for the city at a third of the current rate would actually come to MORE money in the city coffers than they're getting with a handful of downtown businesses paying triple the tax.

Just curious if anyone has ever brought that up downtown any time in the last 20 or 30 years?

[wrldcoupe4]

It’s been brought up maybe a million or so times … they know. They just haven’t done anything about it other than providing a 2 year no tax  incentive for companies to move into the city. But by year 4 it’s a bad deal for the business, so it isn’t really effective. 

[I miss RVA]

Bank Street Advisors -- the folks building One Canal in Monroe Ward and the Soda Flats in Scott's Addition -- just sold their recently renovated apartment buildings at 1 W. Cary Street.

https://richmondbizsense.com/2021/09/28/developer-sells-1-w-cary-st-apartment-complex-for-3-4m/

[eandslee]

If you haven’t seen it yet, land for sale:

https://www.nbc12.com/2021/09/28/large-real-estate-developments-chesterfield-richmond-sale-now/
 

What would you like to see go in here?

[Icetera]

2 hours ago, eandslee said:

If you haven’t seen it yet, land for sale:

https://www.nbc12.com/2021/09/28/large-real-estate-developments-chesterfield-richmond-sale-now/
 

What would you like to see go in here?

Toxic Waste dump behind Target.

[I miss RVA]

4 hours ago, eandslee said:

If you haven’t seen it yet, land for sale:

https://www.nbc12.com/2021/09/28/large-real-estate-developments-chesterfield-richmond-sale-now/
 

What would you like to see go in here?

Wowwww... what a sales pitch by Channel 12. I wonder if WWBT will get any kind of commission on the land sale for the free advertising? 

All of this is one "parcel" for sale? It's weird because about 75 to 80% is actually in Chesterfield and not in the city. If the whole thing is bought lock-stock-and-barrel, I wonder how having most of the land in one municipality and the small portion in the other will affect how the land gets developed and what projects go where?

[Shakman]

7 hours ago, Icetera said:

Toxic Waste dump behind Target.

Great minds think alike.

[I miss RVA]

This really is impressive. Amazing to consider the past 35-40 years and the impact the Eck family has had on W. Main Street. I can't get my head around 158 properties.

https://richmondbizsense.com/2021/09/30/eck-family-lists-158-properties-in-the-fan-as-it-exits-real-estate-market/

[I miss RVA]

Interesting article from the Times-Dispatch/richmond.com. I'm wondering if, going forward, pharmaceuticals, bio-tech, etc., will be the niche industry that ignites and fuels explosive growth in RVA - much the same way banking lit the fuse for Charlotte and tech research launched Raleigh's growth?

https://richmond.com/business/local/2-5-million-in-seed-funding-goes-toward-new-effort-to-develop-more-pharmaceutical-manufacturing/article_9ce468ab-488b-5cdd-9d48-995943c5cf89.html#tracking-source=home-the-latest

[carolina1792]

10 hours ago, I miss RVA said:

pharmaceuticals, bio-tech

What you're describing has already happened to Raleigh/Durham metro. COVID was a boom for Raleigh/Durham pharma industry.  Ranked 5th which is pretty big deal when you're a midsized metro.

If anything, even with Apple announcement, R/D languished in the tech market recently. 

https://www.wraltechwire.com/2020/12/08/raleigh-durham-ranked-5-in-the-nation-for-life-sciences-industry/

[Downtowner]

12 hours ago, I miss RVA said:

Interesting article from the Times-Dispatch/richmond.com. I'm wondering if, going forward, pharmaceuticals, bio-tech, etc., will be the niche industry that ignites and fuels explosive growth in RVA - much the same way banking lit the fuse for Charlotte and tech research launched Raleigh's growth?

https://richmond.com/business/local/2-5-million-in-seed-funding-goes-toward-new-effort-to-develop-more-pharmaceutical-manufacturing/article_9ce468ab-488b-5cdd-9d48-995943c5cf89.html#tracking-source=home-the-latest

I am going to be brutally honest I don’t think there is one niche rva could make it be the premier niche for it. I think that ship has sailed. Just about every city across the country has a niche it specifically specializes in rva doesn’t have that nor do I ever see that happening and it kills me or say that but the cities that have already established a niche are light years ahead of us. I don’t see anything left or any industry category left that rva could specialize in that would make it unique. I hate saying that but I think rva has lost its chance on concentrating on a specific niche. 

[Icetera]

1 hour ago, Downtowner said:

I am going to be brutally honest I don’t think there is one niche rva could make it be the premier niche for it. I think that ship has sailed. Just about every city across the country has a niche it specifically specializes in rva doesn’t have that nor do I ever see that happening and it kills me or say that but the cities that have already established a niche are light years ahead of us. I don’t see anything left or any industry category left that rva could specialize in that would make it unique. I hate saying that but I think rva has lost its chance on concentrating on a specific niche. 

We have been recognized for Marketing (global) and Law Firms (national) in the past, if not currently.  I do not think anywhere close to every city has a niche, in fact, I would argue few do.  Also, not all niches stick around as has gone the days of our recognition (thankfully) for tobacco and *cough* human trafficking industries.

[wrldcoupe4]

Diverse economy is a good thing IMO. 

[I miss RVA]

Great article in RBS about Kinsley - a construction company based in Pennsylvania that purchased the old Williams Bridge Co. factory complex along I-95 south of Maury Street - and have reopened it as a steel factory. It's a reminder of just how robust RVA's heavy industry and manufacturing once was, as evidenced by the buildings in this complex (now fully operational) - and the old locomotive works building (Bow Tie) on Arthur Ashe Boulevard. Given the amount of heavy manufacturing RVA enjoyed from 1880 through the 1960s, I'm honestly surprised the city's and metro's population didn't grow much larger and much faster as was the case in many of the northern cities that had heavy industry. Glad to see Kinsley has set up shop in RVA!

https://richmondbizsense.com/2021/10/08/steel-rolling-kinsley-makes-its-mark-on-old-williams-bridge-co-building/

 

Edited October 8, 2021 by I miss RVA

[Downtowner]

45 minutes ago, I miss RVA said:

Great article in RBS about Kinsley - a construction company based in Pennsylvania that purchased the old Williams Bridge Co. factory complex along I-95 south of Maury Street - and have reopened it as a steel factory. It's a reminder of just how robust RVA's heavy industry and manufacturing once was, as evidenced by the buildings in this complex (now fully operational) - and the old locomotive works building (Bow Tie) on Arthur Ashe Boulevard. Given the amount of heavy manufacturing RVA enjoyed from 1880 through the 1960s, I'm honestly surprised the city's and metro's population didn't grow much larger and much faster as was the case in many of the northern cities that had heavy industry. Glad to see Kinsley has set up shop in RVA!

https://richmondbizsense.com/2021/10/08/steel-rolling-kinsley-makes-its-mark-on-old-williams-bridge-co-building/

 

As someone like myself who works a trade job it’s great to see things like this keep going on. I honestly thought it would be demolished but glad someone saw it as an opportunity to bring it back to life and be part of the steel industry. Love hearing stories like this.