Richmond: Economy/Business/Real Estate

[I miss RVA]

2 hours ago, ancientcarpenter said:

 

RBS replied. Looks like it will be $22 if anyone is interested in the recording:

https://richmondbizsense.com/events/video-archive/

 

This is great news for VCU and the entire City Center area!

I wonder if these are the same folks that had this kind of forum about the future of Manchester's development either in 2020 or in 2021? It was at just this kind of meeting where a couple of folks in the commercial real estate/development industry referred to Manchester as "Richmond's version of Brooklyn".

Edited January 13, 2022 by I miss RVA

[I miss RVA]

I don't remember seeing this story highlighted in the community here, so I thought I'd post it. Local developer Frank Cava is going full speed ahead to develop affordable rental housing for low-income renters across the city. Really great piece in the Richmond BizSense about his "100 Affordable" initiative. Glad to see this happening in RVA, particularly given circumstances facing so many in the wake of the pandemic.

https://richmondbizsense.com/2022/01/26/frank-cavas-100-affordable-initiative-aims-to-build-low-income-rental-homes/

[eandslee]

Looks like local hotels are doing well and occupancy levels are outpacing pre-COVID marks!  This is definitely a very positive sign!  
 

https://www.henricocitizen.com/articles/richmond-area-hotel-occupancy-levels-outpace-pre-covid-marks/

[I miss RVA]

Big price-tag purchase of an older apartment complex off Laburnum Avenue in the near-eastern part of Henrico (between the city line and Mechanicsville). According to RBS, this is becoming quite the trend in metro RVA.

https://richmondbizsense.com/2022/02/07/white-oak-area-apartment-complex-fetches-record-setting-154m/

[I miss RVA]

So another area where the RVA economy appears to be QUITE healthy right now is in the hotel/hospitality industry. Check out this article in the Henrico Citizen:

https://www.henricocitizen.com/articles/richmond-area-hotel-occupancy-levels-outpace-pre-covid-marks/

[Downtowner]

https://richmondbizsense.com/2022/02/14/city-weighing-increase-to-bpol-tax-exemption-threshold-for-businesses/
 

how are we not talking about the biggest story of the day. This is very big for Richmond. I’m excited to see the results from this.

[I miss RVA]

8 minutes ago, Downtowner said:

https://richmondbizsense.com/2022/02/14/city-weighing-increase-to-bpol-tax-exemption-threshold-for-businesses/
 

how are we not talking about the biggest story of the day. This is very big for Richmond. I’m excited to see the results from this.

Eager for @wrldcoupe4to weigh in on this.

[wrldcoupe4]

I mean… don’t get me wrong. The fact the city is doing more (doing anything at all) about this is a good thing and helping small businesses have an easier go of doing business in the city is important, but this step only helps relatively small businesses. 
“Addison added that the exemption would amount to about $100 a month in tax relief for qualifying businesses.”

Until they lower the actual rate on larger revenues to be more competitive with the counties, it’s of no benefit for major economic development initiatives, new towers, etc. 

[I miss RVA]

25 minutes ago, wrldcoupe4 said:

I mean… don’t get me wrong. The fact the city is doing more (doing anything at all) about this is a good thing and helping small businesses have an easier go of doing business in the city is important, but this step only helps relatively small businesses. 
“Addison added that the exemption would amount to about $100 a month in tax relief for qualifying businesses.”

Until they lower the actual rate on larger revenues to be more competitive with the counties, it’s of no benefit for major economic development initiatives, new towers, etc. 

Thanks, Coupe. So how does this message get to the people who most need to hear, understand and heed this?

[wrldcoupe4]

They know it. They just aren’t doing enough about it. 

[I miss RVA]

19 minutes ago, wrldcoupe4 said:

They know it. They just aren’t doing enough about it. 

Wow - that blows my mind that the powers that be at City Hall understand that from a development standpoint, they're shooting themselves (and the city) in the family jewels and are seemingly okay with it. That makes absolutely no sense to me, given the potential for what could come pouring into the city if they'd step up to the plate and play ball. What in your opinion is driving this mindset?

Edited February 15, 2022 by I miss RVA

[I miss RVA]

From Thursday's Richmond Times-Dispatch: Some VERY good news regarding the multi-family/apartment market - it is rip-roaring strong and apparently isn't going to slow down any time soon. Amazing just how hot this market has gotten here!

https://richmond.com/business/local/with-record-number-of-apartment-units-added-in-recent-years-can-demand-in-the-richmond/article_b9b6fe51-56e6-51cd-baef-24799d02b992.html

[I miss RVA]

RBS' reporting today on Stoney's $836M FY23 budget for the city.

Allllllllllllllllrighty boys... have at it...  I'm donning my hearing-protective headgear as I await the cannon fire down range...

https://richmondbizsense.com/2022/03/06/mayor-stoney-presents-richmonds-836m-general-fund-budget-for-fy23/

[Downtowner]

Does anyone see development slowing or halting all together with the price of construction materials and oil continuing to surge? I work for an electrical company known as Davis and green. We are working on Avery point currently the 1400 senior living development in goochland by 288 and I can’t help but think and wonder how many general contractors an developers are going to continue to build new buildings when the price of everything involved in construction keeps going up more and more day by day? Does anyone have any insight to when it’s too costly to build anymore?

[upzoningisgood]

21 minutes ago, Downtowner said:

Does anyone see development slowing or halting all together with the price of construction materials and oil continuing to surge? I work for an electrical company known as Davis and green. We are working on Avery point currently the 1400 senior living development in goochland by 288 and I can’t help but think and wonder how many general contractors an developers are going to continue to build new buildings when the price of everything involved in construction keeps going up more and more day by day? Does anyone have any insight to when it’s too costly to build anymore?

I think it’s going to squeeze stuff on the smaller and cheaper end but the bigger and more expensive stuff should be fine. So like if I was going to do gardens style low-priced market rate housing in Midlothian, the economics of that deal kind of suck now. If I’m going to do 250 units in Scotts Addition, that deal is still fine because rents exploded at the same time as construction costs so the economics make sense. But, the building will be worse—the amenities will be worse, the fixtures will be worse, etc. as developers cut costs to make budget.

[123fakestreet]

11 hours ago, Downtowner said:

Does anyone see development slowing or halting all together with the price of construction materials and oil continuing to surge? I work for an electrical company known as Davis and green. We are working on Avery point currently the 1400 senior living development in goochland by 288 and I can’t help but think and wonder how many general contractors an developers are going to continue to build new buildings when the price of everything involved in construction keeps going up more and more day by day? Does anyone have any insight to when it’s too costly to build anymore?

Cost of construction materials has been high for a while, I think interest rates ticking up will have a larger negative impact.

[Downtowner]

1 hour ago, 123fakestreet said:

Cost of construction materials has been high for a while, I think interest rates ticking up will have a larger negative impact.

Oh trust me I’m well aware of that I’m just wondering when the cost is too much to where it’s just not worth it building or leasing office space or renting out apartments. I would think at some point a certain price is beyond not worth the cost for what your getting. I wouldn’t pay just any ole thing for a box sized apartment. Especially where I have children. I wouldn’t pay any old thing to lease retail or office space if it meant I was going to go out of business and there wasn’t anywhere else to go. I know we have a demand issue with residential units and can’t keep up but at some point if everything is gobbled  up and nowhere to go and developers stop building due to price of materials and how much they would have to charge for an apartment or home to own and they know it’s not worth it and they know people wouldn’t bite at the price. Im just wondering when is too much not worth it anymore?

[eandslee]

41 minutes ago, Downtowner said:

Oh trust me I’m well aware of that I’m just wondering when the cost is too much to where it’s just not worth it building or leasing office space or renting out apartments. I would think at some point a certain price is beyond not worth the cost for what your getting. I wouldn’t pay just any ole thing for a box sized apartment. Especially where I have children. I wouldn’t pay any old thing to lease retail or office space if it meant I was going to go out of business and there wasn’t anywhere else to go. I know we have a demand issue with residential units and can’t keep up but at some point if everything is gobbled  up and nowhere to go and developers stop building due to price of materials and how much they would have to charge for an apartment or home to own and they know it’s not worth it and they know people wouldn’t bite at the price. Im just wondering when is too much not worth it anymore?

Kind of hard to say.  I'm sure there are many factors.  Thankfully, it doesn't seem to be making any negative impact right now, so I say - let's keep on building!!!

[Downtowner]

56 minutes ago, eandslee said:

Kind of hard to say.  I'm sure there are many factors.  Thankfully, it doesn't seem to be making any negative impact right now, so I say - let's keep on building!!!

Same I just really don’t want to see something like the last recession in 2008 happen again. That’s my worry and which is why I ask. 

Speaking of 2008 this applies to I miss rva. Do you remember a tower in Chicago being built around the last recession that never got completed until much later known as waterview tower? I remember it only went up a little ways and then got canned and Chicago was left with a big tall concrete block and I would just hate to see a building in Richmond get stuck like that during a nose dive economy 

[I miss RVA]

2 hours ago, Downtowner said:

Same I just really don’t want to see something like the last recession in 2008 happen again. That’s my worry and which is why I ask. 

Speaking of 2008 this applies to I miss rva. Do you remember a tower in Chicago being built around the last recession that never got completed until much later known as waterview tower? I remember it only went up a little ways and then got canned and Chicago was left with a big tall concrete block and I would just hate to see a building in Richmond get stuck like that during a nose dive economy 

I do recall that building - it was originally supposed to be 92 stories and nearly 1,100-feet tall - it sat unfinished for about four or five years before another developer completed a downsized, re-imagined version that is 59 stories and 630-feet tall.

[Downtowner]

39 minutes ago, I miss RVA said:

I do recall that building - it was originally supposed to be 92 stories and nearly 1,100-feet tall - it sat unfinished for about four or five years before another developer completed a downsized, re-imagined version that is 59 stories and 630-feet tall.

I figured you would it’s things like that that worries me at this moment. I also remember the giant hole in the ground in Chicago known as the 2000 foot tall Chicago spire was around the same exact time. I really hope we escape things like that this time around if prices keep going the way they are on everything involved in building and development. 

[I miss RVA]

4 hours ago, Downtowner said:

I figured you would it’s things like that that worries me at this moment. I also remember the giant hole in the ground in Chicago known as the 2000 foot tall Chicago spire was around the same exact time. I really hope we escape things like that this time around if prices keep going the way they are on everything involved in building and development. 

By all accounts, despite several plans for the site, the hole is still there - nothing has changed except proposals for the site. So far, even the latest plan called "sister towers" hasn't gotten off the ground.

[I miss RVA]

Interesting story - out of left field in a way. This building is right down the street from the Ascent/Opus building at Lombardy & Broad. Oh yeah - and the readers are kvetching.

https://richmondbizsense.com/2022/03/10/david-gammino-sells-broad-street-apartment-building-for-4m/

[eandslee]

This appears to be the first of what may be many casualties of the terrible inflated costs of construction right now.  Perhaps Block D was influenced by these very high costs. This is not good news at all for the construction industry.  This saddens me and I just worry about every single project that has been announced, but ground not broken…to include CoStar. We might end up with an 8-story CoStar building in the end.  Yikes!
 

https://richmondbizsense.com/2022/03/15/citing-costs-mosaic-abandons-plans-for-events-space-near-scotts-addition/

Edited March 15, 2022 by eandslee

[wrldcoupe4]

It's a real thing guys. When you harp on some of these deals that are slow to start or get truncated, much of it is driven by things like this at the moment. And let's be honest, pricing never really goes back down, it hopefully just won't go up as quickly at some point.