metro: richmond · square footage rarely mirrors the period's total employment gains or...
TRANSCRIPT
Metro: Richmond
Copyright 2020 Reis, Inc.
Copyright 2020 Reis, Inc.
ContentsMetro Executive Briefing 2
Reis Observer 5
Metro Trend Futures 13
Current Metro Rent Details14
Rent Growth Comparisons14
Current Metro Vacancy Details14
Vacancy Rate Comparisons15
Metro Inventory Details15
Inventory Growth Comparisons16
Construction/Absorption Change16
Economic and Demographic Trends17
Metro Area Map18
Metro Data20
Metro Class Cut 21
Market Data by Building Class - Class A Properties22
Market Data by Building Class - Class B/C Properties23
Submarket Overview 24
New Construction Listing 26
Construction Deliveries27
Metro Construction Breakdown27
Submarket New Construction Project Tally27
Metro Inventory Details27
Inventory Growth Rankings Forecast27
Construction/Absorption Change28
Occupancy at Completion28
Stabilization Data29
Metro Area Map29
New Construction Listing31
Sales Trend 37
Activity38
Map38
Most Recent Transactions38
Comparable Group Details39
Metro Executive Briefing
Copyright 2020 Reis, Inc.
Metro Executive BriefingOffice - 1st Quarter 2020Prepared By Reis, Inc.
Metro: RichmondCustomerID:1075682
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Section 1 - Executive Briefing on Metro Conditions
Average Asking Rent $19.19
● Up 0.1% from year-end 2019.
● Has risen for eight consecutive quarters.
● Expected to finish 2020 at $18.75.
Average Vacancy Rate 13.8%
● Tenth lowest in the nation, and the second in theSouth Atlantic region, behind only District ofColumbia.
● Drifted upward by 30 basis points.
● Highest level since Q2 2016.
Market Overview
The Richmond office market iscomprised of 22.0 million square feetin four geographic concentrationsranging in size from the 9.1 millionsquare foot Northwest submarket tothe Central Business District Westsubmarket, which amounts to 1.0million square feet. In the ten-yearperiod beginning with Q2 2010, amajority of all new construction,535,000 square feet, representing76.0% total new inventory in themetro, has occurred in the CentralBusiness District submarket.
Asking and Effective Rent
During the first quarter of 2020,asking rents in the Virginia statecapital increased by 0.1% to anaverage of $19.19. The market'sstreak of eight consecutive quarterlygains, which began in Q2 2018, hasincreased asking rents by acumulative total of 1.1%. Since thebeginning of Q2 2010, the metro as awhole has recorded an annualaverage increase of 0.4%. During thepast four quarters, positive movementin asking rent was recorded in all fourof the metro's submarkets.
Competitive Inventory,Employment, Absorption
Total employment in the Richmondmetropolitan area grew by 500 jobsduring the first quarter, while in thedominant office-using industries,employment expanded by 200.Quarterly movement in the averageoccupancy level of competitive officesquare footage rarely mirrors theperiod's total employment gains orlosses, but it is advisable to weighlonger-term economic anddemographic trends as factorscontributing to current demand. Sincethe beginning of Q2 2010, theaverage growth rate for office-usingemployment in Richmond has been1.7% per year, representing theaverage annual addition of 3,600 jobs.Although changes in office spacedemand typically trail job creation orlosses, it is helpful to observe that thecumulative impact of employmenttrends in the Richmond metropolitanarea contributed to absorption ofnegative 46,000 square feet duringthe first quarter, and a total ofnegative 7,000 square feet over thepast four quarters; in historicalperspective, this recent rate of tenantoutmigration is even greater than theannual average since the beginning ofQ2 2010 of negative 2,100 squarefeet. The net increase in vacancy fromone year ago is 20 basis points to alevel of 13.8%. From an historical
perspective, the first quarter vacancyrate is 0.5 percentage points lowerthan the 14.3% average recordedsince the beginning of Q2 2010.
Outlook
Reis's new construction analystsreport that no competitive office stockwill be introduced to the metro thisyear, and net total absorption will benegative 507,000 square feet. Inresponse, the vacancy rate willcontinue to drift upward to finish theyear at 16.1%. During 2021 and 2022,construction activity undersurveillance is projected to deliver atotal of 150,000 square feet. Officeemployment growth at the metro levelduring 2021 and 2022 is expected toaverage 1.7% annually, a rate ofgrowth that will not shield the metrofrom net tenant outmigrationaveraging 49,000 square feet peryear. The market vacancy rate willfinish 2021 at 16.8% and will increase0.3 percentage points to 17.1% byyear end 2022. Between now andyear-end 2020 asking rents areexpected to decline -2.3% to a level of$18.75, while effective rents will fall by-4.9% to $15.30. On an annualizedbasis through 2021 and 2022, askingand effective rents are projected toclimb by 0.6% and 0.3%, respectively,to finish 2022 at $18.96 and $15.40.
Copyright 2020 Reis, Inc.
Reis Observer
Reis Observer RICHMOND
1
Published January 10, 2020 THE ECONOMY
Low unemployment still prevails in Richmond, but job growth is sluggish. This could be seen as a mixed position for the metro, with positives and negatives at opposition as 2020 starts. However, another factor emerges: commercial real estate. “From apartments to data centers to hotels, the region’s commercial development market experienced exceptional growth across many sectors in 2019,” Richmond BizSense.com reported December 23rd. “Henrico County has become one of the state’s fastest-growing areas for data center development, a trend that continued throughout 2019, particularly in the county’s White Oak Technology Park,” BizSense.com reported. Infill—the practice of developing within existing buildings or frameworks—continued an “upswing” in 2019. In new construction, there has been hotel “bonanza” in the form of new hotel starts, BizSense.com reported. “One local hotelier in particular, Henrico-based KM Hotels, had a busy year announcing new projects. They include a five-story, 127-room Residence Inn by Marriott hotel at the corner of Floyd Avenue and North Thompson Street off Interstate 195; the state’s first AC Hotel by Marriott at 1300 E. Byrd St., along the south side of the Kanawha Canal; and a new Tru by Hilton hotel in Ashland,” according to this source. industrial demand has stayed strong. “Metro Richmond has long been a player for logistics and industrial space—and 2019 proved it will remain that way going into the new year,” BizSense.com reported. Finishing off the deals is the “Diamond.” “Thalhimer Realty Partners, the investment and development arm of Thalhimer, last month purchased the Wesco Distribution site at 2902 N. Arthur Ashe Blvd. for $3.75 million, city property records show. The 3.2-acre property sits across Boulevard West from the Greyhound bus station and is within view of the baseball stadium across North Arthur Ashe Boulevard,” BizSense.com reported. Sources close to the deal said the building will remain a warehouse for an electrical supply company for several years. With plenty of activity on the commercial real estate front, the latest Current Employment Survey (CES) data from the U.S. Bureau of Labor Statistics (BLS) show the Richmond Metropolitan Statistical Area (MSA) is not faring particularly well. Total non-farm employment is up 6,400 jobs (0.9%) in the 12 months ending in October 2019. Total private employment was up 5,200 jobs (0.9%). These are positive numbers, but an annual gain of at least 1.0% would be welcome. As for individual sectors, there were pluses and minuses across the board. Construction and Related Trades, with 39,700 employed, lost 400 jobs (1.0%). Manufacturing, with
Employment:
• The BLS reports a seasonally unadjusted unemployment rate of 2.6% in October 2019 for the Richmond MSA, down from 2.8% one year earlier.
• Moody’s Economy.com reports a
third quarter 2019 average household income of $146,785 for Richmond. Average household incomes of $161,142 and $143,029 are reported for the top metros in the nation and South Atlantic region, respectively.
Employment Growth:
Employment by Sector:
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Reis Observer RICHMOND
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Published January 10, 2020 32,500 employed, gained 300 jobs (0.9%). Wholesale Trade, with 28,300 employed, lost 200 jobs (0.7%). Retail Trade, a fairly large sector with 64,800 employed, lost 900 jobs (1.4%). Leisure and Hospitality, which covers those industries associated with tourism, lodging and dining, employs 67,700 and posted a solid gain of 2,200 jobs (2.2%). Overall Government employment, large at 113,900 also posted a healthy gain of 1,200 jobs (1.1%) (Richmond is the capital of Virginia). White-collar employment showed both gains and losses. The Information sector is small, with only 7,000 employed. This sector includes web portals and telecommunications, and lost 100 jobs. Financial Activities employs 52,700 and gained a solid 1,300 jobs (2.5%). Professional and Business Services, a large, well-paying sector with 115,900 employed actually posted a loss of 400 jobs (0.3%). Losses in upper echelon employment sectors bear watching. Employment Services, an industry within Professional Services that includes temporary workers, employs 21,600 and lost 1,000 jobs (4.4%). Fortunately, Education and Health Services, with 102,800 employed, gained 2,200 new jobs (2.2%). Household-based data from the BLS show the labor force, which covers those working and those looking for work, increased by 16,477 (2.4%) in the 12 months ending in October. Employment, which by this measure also includes free-lance workers and those who commute to work outside the MSA, increased by 17,866 (2.7%). The overall employment picture here is positive, but there are some weak spots, and certain sectors are showing much better performances than others. For all of Virginia, the Richmond Times-Dispatch reported December 23rd that “Virginia is poised to finish 2019 with its fifth straight year of economic growth and its second straight year of growth exceeding 2.0%, according to a report by economists at Old Dominion University that also identifies some weak points in the economy.” “That is good news, but it also shows that during this [economic] expansion, growth in Virginia has lagged that of the nation,” said Robert M. McNab, a professor of economics and director of the Dragas Center for Economic Analysis and Policy at ODU. OUTLOOK The Times-Dispatch also reported in December “Top executives for small- and medium-sized businesses in central Virginia remain optimistic about sales, capital spending and employment over the next six months.” The fourth-quarter economic outlook survey conducted by the Virginia Council of CEOs and the University of Richmond’s Robins School of Business found that 57.0% of CEOs expect to add jobs in the next six months. Business leaders appear to be confident about 2020.
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Reis Observer RICHMOND
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Published January 10, 2020 THE REAL ESTATE MARKET OFFICE
The Richmond general purpose, multi-tenant office market posted a third quarter 2019 vacancy rate of 13.5%. The rate was down 10 basis points for the quarter and up 50 basis points for the year. Vacancy has spent the last few years between 13.0% and 13.9%. The rate hit 14.2% in the second quarter of 2016 and has been lower than that ever since. The third quarter Class A vacancy rate was 12.6%, down 100 basis points from the prior quarter and down 10 over 12 months. The Class B/C rate was 14.8%, up 120 basis points from the prior quarter and up 140 over 12 months. Reis expects overall vacancy to finish 2019 at 13.6% and rise to 14.1% by 2023. Reis reports third quarter average asking and effective rents of $19.15 psf and $16.06 psf, each up 0.4% for the quarter and 0.7% for the year. These are good gains for this market, which generally registers modest annual and quarterly increases. The Class A third quarter asking rent was reported at $21.22 psf and Class B/C at $16.58 psf. Class A rents were up 0.4% for the quarter and up 0.7% for the year, while Class B/C rents were up 0.7% for the quarter and up 1.0% for the year. Reis forecasts overall gains of 0.8% and 0.9%, asking and effective for all of 2019. Gains will eventually reach 1.8% asking and 1.7% effective by 2022. • Virginia Business reported January 2nd, “Chester-based Shamin Hotels has
bought the Richmond Times-Dispatch building in downtown Richmond for $14.462 million from a Berkshire Hathaway Inc. subsidiary, Shamin President and CEO Neil Amin confirmed. Shamin Hotels will be moving its headquarters into the four-story, 172,110-square-foot building at 300 East Grace Street later this year, sharing space with the Richmond Times-Dispatch and other tenants. The building will retain the newspaper’s branding, Amin said.”
Special Real Estate Factors:
• Office: “The Sauer Center development continues to fill out, this time luring a D.C.-based nonprofit to relocate its headquarters to Richmond,” Richmond BisSense.com reported December 19th. “Great Minds, an organization that works with teachers and scholars to develop school curricula for pre-kindergarten through grade 12, is finalizing a lease to take all of 840 Hermitage Road in the Whole Foods-anchored project led by Sauer Properties. Great Minds spokesman Chad Colby confirmed the lease and said they hope to be moved in by fall 2020. Its D.C. office will be retained, as will a third office in Detroit, but the Richmond office will serve as its new HQ. It has leased all 17,000 square feet available in the one-story building near the intersection of Hermitage Road and West Clay Street. Great Minds is leasing all of 840 Hermitage Road.”
• The BizSense.com commercial real estate roundup reported Richmond-based Lynx Ventures is using an Opportunity Zone (OZ) funds to help construct The Current, a $68 million, two-building office, retail, and residential project on a 2-acre surface lot at 400 Hull St. in Manchester.
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Published January 10, 2020 APARTMENT
Vacancy in Richmond’s 78,246-unit apartment market posted a 3.8% rate in the third quarter of 2019, unchanged for every quarter in the past 12 months. The rate was 3.6% in the second quarter of 2018. Class A vacancy finished the third quarter at 4.9%, up 10 basis points for the quarter and up 10 over the year. The Class B/C vacancy rate was 2.9%, unchanged for the quarter and for the year. Reis forecasts a 4.1% overall vacancy rate for year-end 2019, and 5.0% for 2023. In 2019, Reis reports 1,095 units completed construction in nine projects. The largest of these is the Winterfield at Midlothian, with 238 units. The most recent is the December completion of Building A of the Flats at City View, with 13 units. All told, Reis forecasts new construction and net absorption to total 7,905 and 6,603 units, respectively, from 2019 to 2023. Reis reports four projects totaling 909 units currently under construction for completion in January alone.
The average asking rent was up 0.5% in the third quarter of 2019 to finish at $1,036 per month, while the average effective rent rose 0.5% as well to $994 per month. The year-over-year gains were 2.9% and 3.1%. The market has cooled off since the plus-5.0% gains of 2018. The Class A asking rent, at $1,202 per month, is up 0.4% over the third quarter and up 2.4% over 12 months. The Class B/C asking rent is $878 per month, up 0.5% for the period and up 3.1% over the year. Reis expects overall gains of 3.1% asking and 3.3% for effective rents in 2019. • “In Scott’s Addition, Henrico-based Capital Square is making its first foray into
development using OZ funds to help build its Scott’s Collection, a $90 million, three-phase project that eventually will house hundreds of new apartments along Moore and Clay streets. One of the buildings could be the tallest in the neighborhood. Final regulations for the OZ program are pending at the federal level and could be handed down in the New Year,” BizSense.com reported in December.
• Apartment: “An area developer who’s been on an apartment hot streak in Hanover County is opening the doors to his latest community,” BizSense.com reported January 2nd. “Larry Shaia’s Charter Realty and Development Co. is putting the finishing touches on Cambridge Square Apartments, a 207-unit complex at 7125 Brandy Run Drive, behind the Goodwill store and Food Lion-anchored Brandy Hill Plaza shopping center at Mechanicsville Turnpike and Lee Davis Road. The $36 million project is more than a year in the making, with Shaia purchasing the land in November 2017 for $1.26 million and construction starting in mid-2018…Rents range from $1,100 to $1,700 a month for units ranging from 735 to nearly 1,400 square feet.”
• “Richmond real estate developer Lynx Ventures sold Market Villas, a 31-unit adaptive reuse apartment property, to real estate asset management firm CJehn Partners LLC for more than $3.9 million, Cushman & Wakefield Thalhimer’s Capital Markets Group announced.” Virginia Business reported December 4th that “the property located in downtown Richmond’s historic Shockoe Bottom neighborhood includes first-floor retail space in close proximity to the 17th Street Farmers’ Market.”
Special Real Estate Factors: Continued
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Reis Observer RICHMOND
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Published January 10, 2020 RETAIL Community-neighborhood shopping center vacancy finished the third quarter of 2019 at 12.4%, unchanged over the quarter and up 90 basis points over the year. Double-digit vacancy is a fixture here, but the rate had managed to stay in the range of 10.0% to 12.0% the past few years. Having broken that mark in the second quarter, and stayed static in the third, occupancy here is at least stable. Net absorption opened 2019 with negative 40,000 square feet with no new construction. Second quarter followed with negative 56,000, and third quarter with negative 8,000. The 57,350-square-foot West Broad marketplace South is a community shopping center under construction with a June 2020 date. Reis expects the community-neighborhood shopping center vacancy rate to finish 2019 at 11.9%, with gradual increases to follow. Reis reports power center vacancy at 3.2%, up from 2.9% one year earlier. Reis’s third quarter community-neighborhood shopping center market average rents are $18.14 psf asking and $15.59 psf effective, down 0.2% and 0.1%, respectively, from the prior quarter. These rates are up 2.1% and 2.0% over 12 months. Effective rents are still 14.1% lower than asking rents, indicating an active role played by concessions. Asking and effective rents finished 2018 with 2.2% increases. Reis reports a power center asking rent of $24.08 psf, up 6.7% over the year. Reis forecasts rent gain of 1.2% and 1.0% in 2019, with smaller gains to follow • BizSense.com also noted in the Bermuda square purchase that “five of six single-
tenant outparcels fronting West Hundred Road and Jefferson Davis Highway are occupied by Chipotle, SunTrust Bank, Captain D’s, Shoney’s, and Starbucks.” A 0.7-acre outparcel at 2501 West Hundred Road, which has served as a makeshift parking lot for the retail center, is slated to be developed for a Valvoline Express Care Center, sources said.
• Retail: “A national grocery store chain has unloaded a Chesterfield shopping center it picked up two years ago in the wake of a high-profile merger involving its parent company,” BizSense.com reported December 5th. “Giant Food Stores sold the Bermuda Square retail center at 12601-12649 Jefferson Davis Highway to a business entity tied to Nashville-based real estate firm GBT Realty Corp. for $18.6 million, according to county property records.” “Giant purchased the seven-building, 15-acre retail center two years ago for $13.7 million. It most recently was assessed by the county for $10.3 million, according to property records. No plans for the center had been filed with the county’s planning division.”
• “The group behind the redevelopment of a struggling West End mall appears to be cashing in on some of its success at the ever-evolving property. The Rebkee Co. and Thalhimer Realty Partners, which together are transforming Regency Square in Henrico, last week sold two newly constructed and fully leased retail buildings on a 1.6-acre outparcel at 1420 N. Parham Road near the mall’s JCPenney concourse for $7.4 million. The properties sold include the 5,200-square-foot BetterMed Urgent Care building and the adjacent 6,600-square-foot freestanding retail center that houses Panera Bread and PenFed Realty,” BizSense.com reported in November.
Special Real Estate Factors: Continued
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Published January 10, 2020 TRANSACTION ANALYTICS Office There was no qualifying office sale in the third quarter of 2019, according to Reis. There was one in the second quarter, the $3.6 million ($69 psf) May sale of Waterford 1 in Midlothian, at 52,000 square feet. Amongst active submarkets over the past four quarters, Reis reports the Northwest leading for square feet sold and transaction volume, at 671,546 and $88 million, respectively. The price per-square-foot was $131. One large deal last January accounts for most of that activity. Apartment There were 15 qualifying apartment sales in the third quarter of 2019, Reis reports. The 15 sales totaled $117.9 million at a mean price of $109,000 per unit. The mean sales price was $7.9 million. The mean cap rate was 5.8%. Of the top sales of the previous 12 months, one was in the third quarter. In July, the South Bank, with 147 units, sold for $23 million ($156,463 per unit). Retail Reis reports four qualifying retail sales in the third quarter of 2019 for a transaction volume of $11.4 million. The mean price per-square-foot was $152. The mean sales price was $2.8 million. The mean cap rate was 11.5%, the 12-month rolling cap rate was 7.8%. Amongst active submarkets over the past four quarters, the one with the most activity was the Southwest, with 774,187 square feet sold for a transaction volume of $128 million. The highest price per-square-foot was in the Northwest, at $165, which was only $8.00 more than the Southwest.
* Reis Transaction Analytics includes single sale transactions of $2,000,000 and greater, and excludes portfolio sales where pricing of individual buildings cannot be confirmed.
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Reis Observer RICHMOND
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Published January 10, 2020 INDUSTRIAL Vacancy in Richmond’s 46-million-square-foot warehouse/distribution market finished the third quarter of 2019 at 9.5%, up 50 basis points over the quarter. This rate is down 130 basis points over the year. Reis reports average asking and effective rents of $4.30 psf and $3.92 psf, up 0.2% and 0.3% for the quarter and up 1.2% and 1.6% for the year. Rents were weak in the first quarter but have recovered. Net absorption finished 2018 at 1 million square feet, but the 2019 year-to-date total stands at negative 126,000, after negative 212,000 was recorded in the third quarter. Phase 1 of Airport Logistics Center, at 246,760 square feet, is under construction in the Southeast submarket for a February 2020 completion. For the 5.8-million-square-foot Flex/R&D market, third quarter vacancy is 11.4%, up 50 basis points over the quarter and down 280 over the year. Net absorption posted 81,000, 50,000 and negative 18,000 square feet in the first, second, and third quarters. No Flex/R&D space has been added since 2013, and none is under construction. Reis forecasts vacancy to finish 2019 at 10.9%, peak at 11.9% in 2021, and then fall to 10.8% in 2023. Third quarter asking and effective rents are reported at $8.14 psf and $7.32 psf, up 0.5% and 0.4% for the quarter and up 1.5% and 2.2% over 12 months. Reis predicts annual rent gains will be near 2.0% for the next few years. • Richmond BizSense.com’s December 23rd article paid particular attention to the
growing data center development trend, particularly at White Oak Technology Park in Henrico. “While Facebook continues to build a $2 billion data center campus that eventually will house 2.4 million square feet on 172 acres in the park, QTS Data Centers is planning to grow its footprint on 210 acres it owns nearby at 6020 Technology Blvd,” this source stated. QTS “is set to deliver about 2.3 million square feet of new data center space to the area.”
Special Real Estate Factors: Continued
• Industrial: “Three years after arriving on the local grocery scene, a New York-based supermarket chain…has picked Hanover County for a large-scale distribution facility and regional headquarters,” BizSense.com reported December 11th. “Wegmans Food Markets is set to build a 1.1-million-square-foot facility on about 220 acres just east of Hanover County Municipal Airport,” the governor’s office announced. “The $175 million project would create 700 full-time jobs, 140 or so of which would be executive-level positions. Hanover and Virginia won the project over North Carolina, which also was in the running.” In a statement, Wegmans President and CEO Colleen Wegman said the Hanover site was selected for its proximity to the company’s stores and workforce growth.
Unless otherwise indicated, economic and demographic data provided by Moody’s Economy.com
Publication Date: January 2020 © 2020 Reis, Inc.
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Sector 3Q19 3Q18 Chg
Office 13.5% 13.0% 50 bps
Apartment 3.8% 3.8% 0 bps
Retail 12.4% 11.5% 90 bps
Warehouse 9.5% 10.8% -130 bps
Flex/R&D 11.4% 14.2% -280 bps
Vacancy
Sector Chg
Office $19.15 psf $19.01 psf 0.7%
Apartment $1,036 month $1,007 month 2.9%
Retail $18.14 psf $17.76 psf 2.1%
Warehouse $4.30 psf $4.25 psf 1.2%
Flex/R&D $8.14 psf $8.02 psf 1.5%
Rents3Q19 3Q18
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Metro Trend Futures
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Section 3 - Current Metro Rent Details
Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution
Year Built Rent
Before 1970 $17.13
1970-1979 $18.31
1980-1989 $20.06
1990-1999 $22.69
2000-2009 $24.89
After 2009 $27.38
All $19.19
As of 03/31/20
Low 25% Mean Median 75% High
$12.54 $17.85 $19.19 $20.90 $23.50 $30.05
66 65 65
50 50
31
9 8
Under$14.73
$14.74$16.92
$16.93$19.11
$19.12$21.30
$21.31$23.49
$23.50$25.68
$25.69$27.87
$27.88Over
Num
ber
of P
rope
rtie
sLow 25% Mean Median 75% High
- 0.8% - 0.6% 0.1% 0.0% 1.9% 2.3%
51
64
30
1611
1
77
94
Under- 0.5%
- 0.4%- 0.1%
0.0%0.3%
0.4%0.7%
0.8%1.1%
1.2%1.5%
1.6%1.9%
2.0%Over
Num
ber
of P
rope
rtie
s
115 Negative Growth 229Positive Growth
As of 03/31/20 Qtr Ending 03/31/20
Section 4 - Rent Growth Comparisons
Asking Rent Growth
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Richmond 0.1% 0.2% 0.1% 0.7% 0.6% 0.6% 0.4%
South Atlantic 0.2% 0.7% 0.2% 2.3% 2.2% 2.1% 0.4%
United States 0.4% 0.6% 0.4% 2.7% 2.4% 2.6% - 0.4%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 26 18 21 18 22 26 26 18United States 82 64 61 64 68 75 81 38
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-6.0
-4.0
-2.0
0.0
2.0Richmond
South Atlantic
US
Asking Rent Growth Rate Trends and Forecast%
Period ending 12/31/24
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Section 5 - Current Metro Vacancy Details
Vacancy Rate By Age Vacancy Rate Distribution
Year Built Vac. Rate
Before 1970 18.4%
1970-1979 10.7%
1980-1989 16.3%
1990-1999 19.9%
2000-2009 12.3%
After 2009 10.5%
All 13.8%
As of 03/31/20
Low 25% Mean Median 75% High
0.0% 1.8% 13.8% 9.1% 21.9% 98.0%
130
43 4028
21 183
61
Under5.0%
5.1%10.0%
10.1%15.0%
15.1%20.0%
20.1%25.0%
25.1%30.0%
30.1%35.0%
35.1%Over
Num
ber
of P
rope
rtie
s
As of 03/31/20
Section 6 - Vacancy Rate Comparisons
Vacancy Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Richmond 13.8% 13.5% 13.8% 13.4% 13.4% 13.6% 16.5%
South Atlantic 17.4% 17.4% 17.4% 17.3% 16.9% 17.0% 20.2%
United States 16.9% 16.8% 16.9% 16.8% 16.6% 16.6% 19.7%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 26 2 2 2 2 3 3 3United States 82 10 9 10 8 13 13 9
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
14.0
15.0
16.0
17.0
18.0
19.0
20.0
Richmond
South Atlantic
US
Vacancy Rate Trends and Forecast%
Period ending 12/31/24
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Section 7 - Metro Inventory Details
Inventory By Building Age Office Stock Traits
Year Built Percent
Before 1970 10.0%
1970-1979 14.0%
1980-1989 39.0%
1990-1999 19.0%
2000-2009 14.0%
After 2009 3.0%
All 100.0%
As of 03/31/20
MetroLow Mean Median High
Year Built 1901 1982 1986 2019Size (sq. ft.) 10,492 66,366 41,947 700,000
Distance to Highway (miles) 0 0.4 0.2 2.2Distance to CBD (miles) 0.2 6.9 7.2 12.9
Distance to Landmark (miles) 0.2 3.5 3.2 8.2As of 03/31/20 Landmark =James River
Average Metro Lease Terms
CRD % Free Rent(mos)
Expenses $(Commercial)
Lease Term(yrs)
LeasingCommission %
TenantImprovements $
- 3.5% 2.2 $ 8.40 3.0 6.7% $18.40As of 03/31/20
Section 8 - Inventory Growth Comparisons
Inventory Growth Rates
Quarterly Annualized
1Q20 4Q19 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast
Richmond 0.0% 0.2% 0.0% 0.2% 0.0% 0.0% 0.5%
South Atlantic 0.0% 0.2% 0.0% 1.0% 1.0% 0.7% 1.0%
United States 0.1% 0.4% 0.1% 1.0% 1.0% 0.8% 0.8%
Period Ending: 03/31/20 12/31/19 03/31/20 12/31/19 12/31/19 12/31/19 12/31/24
Metro Rank Total Metro RanksCompared to: Metros
1Q20 4Q19 YTD 1 Year 3 Year 5 Year 5 Yr Forecast
South Atlantic 26 17 10 17 17 21 21 20United States 82 55 28 55 53 63 61 47
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-1.0
-0.5
0.0
0.5
1.0
1.5
Richmond
South Atlantic
US
Inventory Growth Comparisons and Forecast%
Period ending 12/31/24
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Section 9 - Construction/Absorption Change
Construction and Absorption
Quarterly
1Q20 4Q19 YTD Avg
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Richmond 0 -46,000 0.0 35,000 30,000 1.2 0 -46,000 0.0
South Atlantic 532,000 -610,000 -0.9 2,897,000 3,142,000 0.9 532,000 -610,000 -0.9Average over period ending: 03/31/20 03/31/20 03/31/20 12/31/19 12/31/19 12/31/19 03/31/20 03/31/20 03/31/20
Annualized
1 Year History 3 Year History 5 Year History
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Richmond 35,000 -48,000 -0.7 37,000 19,000 1.9 93,000 25,000 3.7
South Atlantic 10,690,000 6,938,000 1.5 11,433,000 4,904,000 2.3 9,109,000 5,262,000 1.7Average over period ending: 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19
Annualized
5 Year Forecast
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Richmond 104,400 -29,800 -3.5
South Atlantic 10,040,600 3,593,600 2.8Average over period ending: 12/31/24 12/31/24 12/31/24
-600,000
-400,000
-200,000
0
200,000
400,000
Squ
are
Fee
t
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
5
10
15
Vac
ancy
Rat
e (%
)Construction/Absorption and Vacancy
Vacancy Rate Construction Absorption
Period ending 12/31/24
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Section 10 - Economic and Demographic Trends
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Total Employment Office Employment
Richmond Employment Trends and Forecast
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Richmond South Atlantic US
Total Employment Growth Trends and Forecast Metro vs. Region & U.S.
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.60%
0.80%
1.00%
1.20%
Population Households
Richmond Population/Household Growth Trends and Forecast
Per
cent
age
Cha
nge
Provided by Moody's Economy.com, Period ending 12/31/24
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Metro: RichmondCustomerID:1075682
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Section 11 - Metro Area Map: Richmond
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Section 12 - Metro Data
Year Qtr InventorySF/Units Completions Inventory
Growth% Vacant Stock VacancyRate
VacancyChange(BPS)
OccupiedStock
NetAbsorption Asking Rent Ask Rent %
Chg
2015 Y 22,326,000 353,000 1.6% 3,130,000 14.0% 10 19,196,000 283,000 $18.76 0.5%
2016 Y 22,025,000 0 - 1.3% 3,043,000 13.8% -20 18,982,000 -214,000 $18.83 0.4%
2017 Y 22,080,000 76,000 0.2% 2,893,000 13.1% -70 19,187,000 205,000 $18.99 0.8%
2018 Q2 21,989,000 0 - 0.4% 2,909,000 13.2% 40 19,080,000 -170,000 $19.00 0.1%
2018 Q3 21,989,000 0 0.0% 2,860,000 13.0% -20 19,129,000 49,000 $19.01 0.1%
2018 Q4 21,989,000 0 0.0% 2,901,000 13.2% 20 19,088,000 -41,000 $19.05 0.2%
2018 Y 21,989,000 0 - 0.4% 2,901,000 13.2% 10 19,088,000 -99,000 $19.05 0.3%
2019 Q1 21,989,000 0 0.0% 2,988,000 13.6% 40 19,001,000 -87,000 $19.06 0.1%
2019 Q2 21,989,000 0 0.0% 2,987,000 13.6% 0 19,002,000 1,000 $19.07 0.1%
2019 Q3 21,989,000 0 0.0% 2,979,000 13.5% -10 19,010,000 8,000 $19.15 0.4%
2019 Q4 22,024,000 35,000 0.2% 2,984,000 13.5% 0 19,040,000 30,000 $19.18 0.2%
2019 Y 22,024,000 35,000 0.2% 2,984,000 13.5% 30 19,040,000 -48,000 $19.18 0.7%
2020 Q1 22,024,000 0 0.0% 3,030,000 13.8% 30 18,994,000 -46,000 $19.19 0.1%
2020 Y 22,024,000 0 0.0% 3,537,000 16.1% 260 18,487,000 -553,000 $18.75 - 2.2%
2021 Y 22,174,000 150,000 0.7% 3,722,000 16.8% 70 18,452,000 -35,000 $18.72 - 0.2%
2022 Y 22,174,000 0 0.0% 3,786,000 17.1% 30 18,388,000 -64,000 $18.96 1.3%
2023 Y 22,352,000 178,000 0.8% 3,705,000 16.6% -50 18,647,000 259,000 $19.24 1.5%
2024 Y 22,546,000 194,000 0.9% 3,655,000 16.2% -40 18,891,000 244,000 $19.55 1.6%
Year Qtr EffectiveRent
Eff Rent %Chg Cons/Abs Abs/Occ
Stock% Population Pop%Chg Employment Emp%
Chg Off Emp Off EmpPct Chg
Avg HHIncome
AHHI%Chg
2015 Y $15.74 0.8% 1.2 1.5% 1,275,200 0.9% 660,000 3.9% 229,503 4.4% $133,607 4.2%
2016 Y $15.78 0.3% 0.0 - 1.1% 1,287,080 0.9% 666,200 0.9% 230,884 0.6% $135,685 1.6%
2017 Y $15.92 0.9% 0.4 1.1% 1,297,920 0.8% 671,430 0.8% 231,245 0.2% $140,641 3.7%
2018 Q2 $15.94 0.1% 0.0 - 0.9% 1,303,660 0.2% 676,530 0.1% 234,395 0.3% $143,887 0.6%
2018 Q3 $15.95 0.1% 0.0 0.3% 1,304,980 0.1% 679,500 0.4% 235,991 0.7% $145,064 0.8%
2018 Q4 $15.97 0.1% 0.0 - 0.2% 1,306,280 0.1% 679,000 - 0.1% 235,158 - 0.4% $146,302 0.9%
2018 Y $15.97 0.3% 0.0 - 0.5% 1,306,280 0.6% 679,000 1.1% 235,158 1.7% $146,302 4.0%
2019 Q1 $15.98 0.1% 0.0 - 0.5% 1,307,630 0.1% 681,430 0.4% 236,748 0.7% $147,872 1.1%
2019 Q2 $16.00 0.1% 0.0 0.0% 1,309,090 0.1% 684,030 0.4% 238,996 0.9% $149,689 1.2%
2019 Q3 $16.06 0.4% 0.0 0.0% 1,310,630 0.1% 684,770 0.1% 239,246 0.1% $150,338 0.4%
2019 Q4 $16.08 0.1% 1.2 0.2% 1,312,350 0.1% 689,200 0.6% 238,148 - 0.5% $150,815 0.3%
2019 Y $16.08 0.7% -0.7 - 0.3% 1,312,350 0.5% 689,200 1.5% 238,148 1.3% $150,815 3.1%
2020 Q1 $16.08 0.0% 0.0 - 0.2% 1,314,190 0.1% 689,690 0.1% 238,323 0.1% $151,243 0.3%
2020 Y $15.30 - 4.9% 0.0 - 3.0% 1,320,160 0.6% 672,040 - 2.5% 231,965 - 2.6% $150,138 - 0.4%
2021 Y $15.22 - 0.5% -4.3 - 0.2% 1,328,150 0.6% 679,390 1.1% 234,380 1.0% $154,107 2.6%
2022 Y $15.40 1.2% 0.0 - 0.3% 1,335,830 0.6% 694,500 2.2% 239,980 2.4% $161,622 4.9%
2023 Y $15.70 1.9% 0.7 1.4% 1,343,210 0.6% 702,320 1.1% 243,193 1.3% $167,373 3.6%
2024 Y $16.05 2.2% 0.8 1.3% 1,350,920 0.6% 705,350 0.4% 244,768 0.6% $172,710 3.2%
Copyright 2020 Reis, Inc.
Metro Class Cut
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Section 13 - Market Data by Building Class - Class A Properties
Year Quarter Inventory(Sq Ft) Completions Vac % Vacant Stock Occupied
Stock Net Abs AskingRent($)
RentChange
Constr/Abs
Abs/OccStock %
Gr Rev.Unit ($)
2009 Y 11,622,000 0 10.7% 1,246,000 10,376,000 -23,000 $20.65 - 0.5% 0.0 -0.2 $18.44
2010 Y 11,842,000 220,000 12.4% 1,470,000 10,372,000 -4,000 $20.46 - 0.9% -55.0 0.0 $17.92
2011 Y 11,823,000 0 11.7% 1,382,000 10,441,000 69,000 $20.48 0.1% 0.0 0.7 $18.09
2012 Y 11,823,000 0 12.2% 1,444,000 10,379,000 -62,000 $20.67 0.9% 0.0 -0.6 $18.15
2013 Y 11,823,000 0 12.4% 1,467,000 10,356,000 -23,000 $20.96 1.4% 0.0 -0.2 $18.36
2014 Y 11,843,000 20,000 13.4% 1,592,000 10,251,000 -105,000 $20.93 - 0.1% -0.2 -1.0 $18.12
2015 Y 12,196,000 353,000 13.4% 1,635,000 10,561,000 310,000 $20.98 0.2% 1.1 2.9 $18.17
2016 1 12,196,000 0 13.8% 1,679,000 10,517,000 -44,000 $21.00 0.1% 0.0 -0.4 $18.11
2016 2 12,196,000 0 13.8% 1,688,000 10,508,000 -9,000 $20.99 0.0% 0.0 -0.1 $18.08
2016 3 12,196,000 0 13.5% 1,646,000 10,550,000 42,000 $20.98 0.0% 0.0 0.4 $18.15
2016 4 12,196,000 0 13.7% 1,666,000 10,530,000 -20,000 $20.95 - 0.1% 0.0 -0.2 $18.09
2016 Y 12,196,000 0 13.7% 1,666,000 10,530,000 -31,000 $20.95 - 0.1% 0.0 -0.3 $18.09
2017 1 12,196,000 0 13.6% 1,656,000 10,540,000 10,000 $21.04 0.4% 0.0 0.1 $18.18
2017 2 12,256,000 60,000 13.0% 1,590,000 10,666,000 126,000 $21.08 0.2% 0.5 1.2 $18.35
2017 3 12,256,000 0 12.9% 1,579,000 10,677,000 11,000 $21.11 0.1% 0.0 0.1 $18.39
2017 4 12,256,000 0 13.2% 1,616,000 10,640,000 -37,000 $21.13 0.1% 0.0 -0.3 $18.34
2017 Y 12,256,000 60,000 13.2% 1,616,000 10,640,000 110,000 $21.13 0.9% 0.5 1.0 $18.34
2018 1 12,256,000 0 12.8% 1,563,000 10,693,000 53,000 $21.09 - 0.2% 0.0 0.5 $18.40
2018 2 12,256,000 0 13.2% 1,618,000 10,638,000 -55,000 $21.09 0.0% 0.0 -0.5 $18.31
2018 3 12,256,000 0 13.1% 1,600,000 10,656,000 18,000 $21.07 - 0.1% 0.0 0.2 $18.32
2018 4 12,256,000 0 13.0% 1,598,000 10,658,000 2,000 $21.12 0.2% 0.0 0.0 $18.37
2018 Y 12,256,000 0 13.0% 1,598,000 10,658,000 18,000 $21.12 0.0% 0.0 0.2 $18.37
2019 1 12,256,000 0 14.0% 1,710,000 10,546,000 -112,000 $21.14 0.1% 0.0 -1.1 $18.19
2019 2 12,256,000 0 14.0% 1,717,000 10,539,000 -7,000 $21.14 0.0% 0.0 -0.1 $18.18
2019 3 12,256,000 0 13.0% 1,592,000 10,664,000 125,000 $21.20 0.3% 0.0 1.2 $18.45
2019 4 12,291,000 35,000 13.3% 1,629,000 10,662,000 -2,000 $21.22 0.1% -17.5 0.0 $18.41
2019 Y 12,291,000 35,000 13.3% 1,629,000 10,662,000 4,000 $21.22 0.5% 8.8 0.0 $18.41
2020 1 12,291,000 0 13.3% 1,633,000 10,658,000 -4,000 $21.23 0.0% 0.0 0.0 $18.41
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Section 14 - Market Data by Building Class - Class B/C Properties
Year Quarter Inventory(Sq Ft) Completions Vac % Vacant Stock Occupied
Stock Net Abs AskingRent($)
RentChange
Constr/Abs
Abs/OccStock %
Gr Rev.Unit ($)
2009 Y 10,898,000 300,000 18.9% 2,061,000 8,837,000 -125,000 $15.70 0.4% -2.4 -1.4 $12.73
2010 Y 10,697,000 0 20.2% 2,157,000 8,540,000 -297,000 $15.69 - 0.1% 0.0 -3.5 $12.53
2011 Y 10,606,000 0 19.7% 2,092,000 8,514,000 -26,000 $15.73 0.3% 0.0 -0.3 $12.63
2012 Y 10,591,000 0 19.4% 2,059,000 8,532,000 18,000 $15.81 0.5% 0.0 0.2 $12.74
2013 Y 10,285,000 0 17.4% 1,794,000 8,491,000 -41,000 $15.94 0.8% 0.0 -0.5 $13.16
2014 Y 10,130,000 0 14.5% 1,468,000 8,662,000 171,000 $15.99 0.3% 0.0 2.0 $13.67
2015 Y 10,130,000 0 14.8% 1,496,000 8,634,000 -28,000 $16.10 0.7% 0.0 -0.3 $13.72
2016 1 10,130,000 0 14.9% 1,514,000 8,616,000 -18,000 $16.15 0.3% 0.0 -0.2 $13.74
2016 2 10,110,000 0 14.7% 1,485,000 8,625,000 9,000 $16.14 - 0.1% 0.0 0.1 $13.77
2016 3 9,829,000 0 14.2% 1,399,000 8,430,000 -195,000 $16.16 0.1% 0.0 -2.3 $13.86
2016 4 9,829,000 0 14.0% 1,378,000 8,451,000 21,000 $16.21 0.3% 0.0 0.2 $13.94
2016 Y 9,829,000 0 14.0% 1,378,000 8,451,000 -183,000 $16.21 0.7% 0.0 -2.2 $13.94
2017 1 9,829,000 0 13.8% 1,360,000 8,469,000 18,000 $16.26 0.3% 0.0 0.2 $14.01
2017 2 9,829,000 0 13.6% 1,335,000 8,494,000 25,000 $16.32 0.4% 0.0 0.3 $14.10
2017 3 9,845,000 16,000 13.3% 1,311,000 8,534,000 40,000 $16.30 - 0.1% 0.4 0.5 $14.13
2017 4 9,824,000 0 13.0% 1,277,000 8,547,000 13,000 $16.32 0.1% 0.0 0.2 $14.20
2017 Y 9,824,000 16,000 13.0% 1,277,000 8,547,000 96,000 $16.32 0.7% 0.2 1.1 $14.20
2018 1 9,824,000 0 12.9% 1,268,000 8,556,000 9,000 $16.36 0.2% 0.0 0.1 $14.25
2018 2 9,733,000 0 13.3% 1,290,000 8,443,000 -113,000 $16.37 0.1% 0.0 -1.3 $14.20
2018 3 9,733,000 0 13.0% 1,262,000 8,471,000 28,000 $16.42 0.3% 0.0 0.3 $14.29
2018 4 9,733,000 0 13.4% 1,302,000 8,431,000 -40,000 $16.45 0.2% 0.0 -0.5 $14.25
2018 Y 9,733,000 0 13.4% 1,302,000 8,431,000 -116,000 $16.45 0.8% 0.0 -1.4 $14.25
2019 1 9,733,000 0 13.1% 1,277,000 8,456,000 25,000 $16.43 - 0.1% 0.0 0.3 $14.27
2019 2 9,733,000 0 13.1% 1,271,000 8,462,000 6,000 $16.47 0.2% 0.0 0.1 $14.32
2019 3 9,733,000 0 14.2% 1,386,000 8,347,000 -115,000 $16.56 0.5% 0.0 -1.4 $14.20
2019 4 9,733,000 0 13.9% 1,355,000 8,378,000 31,000 $16.60 0.2% 0.0 0.4 $14.29
2019 Y 9,733,000 0 13.9% 1,355,000 8,378,000 -53,000 $16.60 0.9% 0.0 -0.6 $14.29
2020 1 9,733,000 0 14.4% 1,398,000 8,335,000 -43,000 $16.66 0.4% 0.0 -0.5 $14.27
Copyright 2020 Reis, Inc.
Submarket Overview
Submarket OverviewOffice - 1st Quarter 2020Prepared By Reis, Inc.
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Section 15 - Submarket Overview
Submarket Inventory(Buildings)
Inventory(Sq Ft)
AskingRent $ CRD % Vac % Free Rent
(mos)Expenses $
(Commercial)
LeaseTerm(yrs)
LeasingCommission
%
TenantImprovements
$
CBD 58 7,560,000 $19.98 - 4.4% 12.4% 2.3 $ 8.07 3.5 6.8% $22.43
CBD West 30 1,049,000 $16.20 - 6.4% 19.3% 4.0 $ 8.54 2.6 7.6% $19.44
Southwest 90 4,353,000 $19.75 - 2.5% 16.8% 2.5 $ 8.46 2.7 7.0% $13.65
Northwest 203 9,062,000 $18.60 - 2.9% 12.8% 1.8 $ 8.64 2.9 6.3% $17.12
Copyright 2020 Reis, Inc.
New Construction Listing
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Section 16 - Construction Deliveries
Completed SF SF Under Construction Totals Planned Proposed Totals
2019 YTD 2020 2020 2021 and Later 2019 and LaterMulti and Single Tenant 34,700 0 0 285,000 319,700 2,838,778 135,000 2,973,778
Other Office 967,000 0 0 98,000 1,065,000 1,129,780 108,000 1,237,780Totals 1,001,700 0 0 383,000 1,384,700 3,968,558 243,000 4,211,558
Section 17 - Metro Construction Breakdown
5.8 %
15.6 %
16.0 %
11.3 %
51.3 %
Metro Construction by Project Type 2019 and Later
Under 50,00050,000-100,000100,000-200,000200,000-500,000Over 500,000
59.9 %
20.9 %
9.7 %
8.9 %
0.6 %
Metro Construction by Top Five Submarket Share 2019 and Later
CBDSouthwestNorthwestNon-Submarketed AreasCBD West
Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have afirm completion date.
Section 18 - Submarket New Construction Project Tally
1. Completed 2. Under Construction 3. Planned/Proposed
Submarket Multi/Single Tenant OtherOffice Multi/Single Tenant Other
Office Multi/Single Tenant OtherOffice
GrandTotal
CBD 0 960,000 0 0 1,482,362 910,000 3,352,362
CBD West 34,700 0 0 0 0 0 34,700
Southwest 0 0 135,000 98,000 767,881 170,000 1,170,881
Northwest 0 7,000 150,000 0 320,535 64,780 542,315
Non-Submarketed Areas 0 0 0 0 403,000 93,000 496,000
Section 19 - Metro Inventory Details
Inventory By Building Age
Year Built Percent
Before 1970 10.0%
1970-1979 14.0%
1980-1989 39.0%
1990-1999 19.0%
2000-2009 14.0%
After 2009 3.0%
All 100.0%
As of 03/31/202015 2016 2017 2018 2019 2020 2021 2022 2023 2024
-1.0
-0.5
0.0
0.5
1.0
1.5
Richmond South Atlantic US
Office Inventory Growth Trend and Forecast%
New Construction ListingOffice - 1st Quarter 2020Prepared By Reis, Inc.
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Section 20 - Inventory Growth Rankings Forecast
South Atlantic Region Cumulative Inventory Growth Forecast Ranking 2020 and Later National Cumulative Inventory Growth Forecast Ranking 2020 and Later
Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast RankNashville 16.3% 1
Orlando 2.5% 18
Greenville 2.4% 19
Richmond 2.4% 20
Louisville 1.5% 21
Columbia 1.3% 22
Chattanooga 0.4% 26
Austin 19.5% 1
Greenville 2.4% 45
San Bernardino/Riverside 2.4% 46
Richmond 2.4% 47
Ventura County 2.3% 48
Detroit 2.2% 49
Providence 0.0% 82
Section 21 - Construction/Absorption Change
Construction and Absorption
Quarterly
1Q20 4Q19 YTD Avg
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Richmond 0 -46,000 0.0 35,000 30,000 1.2 0 -46,000 0.0
South Atlantic 848,000 -756,000 -1.1 2,897,000 3,033,000 1.0 848,000 -756,000 -1.1Average over period ending: 03/31/20 03/31/20 03/31/20 12/31/19 12/31/19 12/31/19 03/31/20 03/31/20 03/31/20
Annualized
1 Year History 3 Year History 5 Year History
Sq Ft Built Sq FtAbsorbed
Con/AbsRatio Sq Ft Built Sq Ft
AbsorbedCon/Abs
Ratio Sq Ft Built Sq FtAbsorbed
Con/AbsRatio
Richmond 35,000 -48,000 -0.7 37,000 19,000 1.9 93,000 25,000 3.7
South Atlantic 10,690,000 6,938,000 1.5 11,433,000 4,904,000 2.3 9,109,000 5,262,000 1.7Average over period ending: 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19 12/31/19
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Section 22 - Occupancy at Completion
0
20
40
60
80
100
Occ
upan
cy (
%)
2014 2015 2016 2017 2018 2019 2020
Occupancy at Completion Comparisons
Richmond Overall Occupancy Richmond Occupancy at Completion South Atlantic Occupancy at Completion US Occupancy at Completion
Occupancy at Completion ComparisonsProperties Built in: 2014 2015 2016 2017 2018 2019 2020
Richmond 72.6% 80.8% n/a 90.0% n/a 75.1% n/aSouth Atlantic 93.4% 86.1% 83.5% 69.0% 70.2% 67.1% 64.5%United States 79.7% 60.0% 60.6% 78.4% 68.0% 57.5% 70.7%*Occupation at completion is calculated for all properties completed during each individual calendar year
Section 23 - Stabilization Data
0 1 2 3 4 5 6 7 80.0
10.0
20.0
30.0
40.0
50.0
60.0
2014 2015 2016 2017 2018 2019 2020 Long Term Metro Vacancy Average
New Construction Quarters to Stabilization
Quarters After Completion
Vac
ancy
(%
)
%
Stabilization Data
Construction Year: 2014 2015 2016 2017 2018 2019 2020 YTD
No.of Properties Tracked 1 2 2 1
Properties Stabilized 0-4 Quarters After Completion 0 0 2 0Properties Stabilized 5-8 Quarters After Completion 0 0 0 0Properties Stabilized 9-12 Quarters After Completion 0 1 0 0Properties Stabilized 13+ Quarters After Completion 0 0 0 0Properties That Have Not Yet Stabilized 1 1 0 1
Stabilization is reached when the average vacancy of the properties built in any given year equals or is less than the metro's average overall vacancy for the last five years. "0" in theQuarters After Completion chart above represents the vacancy at completion.
New Construction ListingOffice - 1st Quarter 2020Prepared By Reis, Inc.
Metro: RichmondAs of 28-May-2020CustomerID:1075682
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Section 24 - Metro Area Map: Richmond
Completed Projects Under Construction Planned/Proposed
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Metro: RichmondAs of 28-May-2020CustomerID:1075682
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Section 25 - New Construction Listing
No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
Submarket: Northwest
1
Everleigh OfficeThree Chopt Rd & Lauderdale Dr Henrico, VA23233
Developer Name: Dan HargettDeveloper Phone: (804) 560 - 0500Developer Company: REBKEE CO
12-18-2019 Office Henrico 38,000 1 2 Planned
2
Bon Secours Medical Office BldgPATTERSON AVE @ LIBBIE AVE RICHMOND,VA 23226
Developer Name: Drew WiltshireDeveloper Phone: (804) 648 - 5881Developer Company: Thalhimer
11-20-2018 Medical Office Richmond 55,000 1 3 3/2022 Planned
3
Greengate Ph 1 (Office)12121 W BROAD ST RICHMOND, VA 23230
Developer Name: JEFFDeveloper Phone: (804) 741-4663Developer Company: WESTBROAD VILLAGE
11-12-2018 Medical Office Henrico 90,000 2 3 8/2017 11/2018 Complete
4
Harp's LandingStaples Mill Rd & Libbie Lake South StRichmond, VA 23230
Developer Name: LaverneDeveloper Phone: (804) 288 - 0011Developer Company: Gumenick Properties
10-29-2019 Office Henrico 142,535 1 6 Planned
5
Stylecraft Homes Office Expansion6225 Lakeside Ave Henrico, VA 23228
General Contractor Phone: (804) 627 - 0000General Contractor Company: Stylecraft Homes
08-27-2019 Office--Owner Occ. Henrico 9,780 1 2 Planned
6
Reynolds Crossing Medical Office6942 Forest Ave Richmond, VA 23230
Developer Phone: (404) 260 - 5525Developer Company: Reynolds DevelopmentGroup
07-31-2018 Medical Office Henrico 46,401 1 3 3/2017 6/2018 Complete
7
Akaza Hotel Redevelopment6531 W Broad St Richmond, VA 23230
General Contractor Phone: (804) 595 - 1762General Contractor Company: NorthSouthConstruction
07-24-2019 Office Henrico 50,000 1 Planned
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
8
Reynolds Crossing MOB 36946 Forest Ave Richmond, VA 23230
Developer Name: Carl YoungDeveloper Phone: (804) 267 - 3600Developer Company: Reynolds Development
07-23-2018 Medical Office Henrico 46,461 1 2 7/2018 Complete
9
Brookfield Commons ExpansionDickens Rd & W Broad St Richmond, VA 23230
Developer Phone: (804) 730 - 7727Developer Company: STANLEY SHIELD
07-11-2019 Medical Office Henrico 7,000 1 1 9/2018 8/2019 Complete
10
North Shore Commons 34931 LAKE BROOKE DR GLEN ALLEN, VA23060
Developer Name: JANEDeveloper Phone: (804) 290-2153Developer Company: Highwoods Properties
06-25-2019 Office Henrico 90,000 1 4 Proposed
11
Kinsale Capital Group Office DevelopmentMaywill St & Thalbro St Richmond, VA 23230
Owner Name: Micheal KehoeOwner Phone: (804) 289 - 1272Owner Company: Kinsale Capital Group
03-13-2020 Office Henrico 150,000 1 5UnderConstr.
12
Brookfield Commons Renovation6600 W Broad St Richmond, VA 23230
Developer Phone: (804) 730 - 7727Developer Company: STANLEY SHIELD
01-17-2019 Medical Office Henrico 94,800 1 3 6/2018 12/2018 Complete
Submarket: Not in a Reis Submarket
13
The Spur1519 Summit Ave Richmond, VA 23230
Leasing Agent Name: Justin PaleyLeasing Agent Phone: (804) 687 - 9096Leasing Agent Company: Dodson PropertyManagement
12-06-2019 Office Richmond 34,700 1 2 12/2019 Complete
14
Navy Hill RedevelopmentE Broad St & N 7th St Richmond, VA 23219
Developer Phone: (866) 485 - 0803Developer Company: CAPITAL CITYPARTNERS
10-22-2019 Office Richmond 1,000,000 Planned
15
700 Canal Place701 E CARY ST RICHMOND, VA 23219
Developer Phone: (804) 282 - 5300Developer Company: Hourigan Development
08-12-2019 Office--Owner Occ. Richmond 910,000 1 17 Planned
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Metro: RichmondAs of 28-May-2020CustomerID:1075682
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
16
600 Canal Place111 S 6th St Richmond, VA 23219
Owner Name: FRAZIER RYANOwner Phone: (804) 819-2000Owner Company: DOMINION RESOURCESSERVICES INCORPORATED
08-12-2019 Office--Owner Occ. Richmond 960,000 1 20 7/2019 Complete
17
Richmond on The James West8011 & 8021 DOCK ST RICHMOND, VA 23223
Owner Phone: (804) 644-8048Owner Company: RICHMOND ON THE JAMES,LLC
07-29-2019 Office Richmond 284,834 1 10 Planned
18
Richmond on The James Central8011 & 8021 DOCK ST RICHMOND, VA 23223
Owner Phone: (804) 644-8048Owner Company: RICHMOND ON THE JAMES,LLC.
07-29-2019 Office Richmond 86,356 1 11 Planned
19
Richmond on The James East8011 & 8021 DOCK ST RICHMOND, VA 23223
Owner Phone: (804) 644-8048Owner Company: RICHMOND ON THE JAMES,LLC
07-29-2019 Office Richmond 111,172 1 8 Planned
Submarket: Southwest
20
13701 Bon Secours Drive13701 Bon Secours Dr Midlothian, VA 23114
Owner Name: Emma SwannOwner Phone: (804) 287 - 7402Owner Company: Bon Secours Health System
11-26-2019 Medical Office Chesterfield 90,000 1 3 Planned
21
Courthouse Landing Medical Office8701 Iron Bridge Rd Richmond, VA 23237
Developer Phone: (770) 303 - 8200Developer Company: Shuler Properties
10-14-2019 Medical Office Chesterfield 65,000 1 2 Planned
22
Courthouse Landing8701 Iron Bridge Rd Richmond, VA 23237
Developer Name: Jim DunphyDeveloper Phone: (813) 283 - 2558Developer Company: Dunphy Properties
10-14-2019 Office Chesterfield 65,000 1 2 Planned
23
Millworks at The Green Bldgs 5-1313924 Coalfield Road Midlothian, VA 23114
Developer Name: KristenDeveloper Phone: (804) 794 - 8892Developer Company: WOOLFOLKCONSTRUCTION
07-16-2019 Office Chesterfield 121,793 13 3 Planned
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
24
Winterfield Crossing Bldg 2BMidlothian Tpke & Winterfield Rd Midlothian, VA23113
Developer Name: CatherineDeveloper Phone: (804) 794 - 0681Developer Company: GBD Holdings
07-08-2019 Office Chesterfield 22,270 1 1 Planned
25
Winterfield Crossing Bldg 2CMidlothian Tpke & Winterfield Rd Midlothian, VA23113
Developer Phone: (804) 320 - 0422Developer Company: BLACKWOODDEVELOPMENT
07-08-2019 Office Chesterfield 22,270 1 1 Planned
26
Winterfield Crossing Bldg 2AMidlothian Tpke & Winterfield Rd Midlothian, VA23113
Developer Name: CatherineDeveloper Phone: (804) 794 - 0681Developer Company: GBD Holdings
07-08-2019 Office Chesterfield 37,848 1 1 Planned
27
Classic Granite & Marble Headquarters14301 Justice Rd Midlothian, VA 23113
General Contractor Phone: (804) 379 - 9900General Contractor Company: Super StructuresGC LLC
06-13-2019 Office--Owner Occ. Chesterfield 98,000 1 3 7/2019UnderConstr.
28
Ocean Network Express Expansion8730 Stony Point Pkwy Richmond, VA 23235
Owner Phone: (844) 413 - 6029Owner Company: Ocean Network Express
05-15-2020 Office Richmond 62,000 1 4 Planned
29
South Falls Ph 2111 Hull St Richmond, VA 23224
Developer Name: Richard SouterDeveloper Phone: (703) 965 - 7387Developer Company: WVS Companies
04-15-2020 Office Richmond 135,000 1 6UnderConstr.
30
The Current400 Hull St & 4th St Richmond, VA 23224
Developer Name: Rick GregoryDeveloper Phone: (804) 415 - 4477Developer Company: Lynx Ventures
04-06-2020 Office Richmond 86,700 1 6 12/2020 Planned
31
5500 Woolridge Road5500 Woolridge Rd Moseley, VA 23120
Developer Phone: (772) 539 - 4560Developer Company: Watercrest Senior LivingGroup
01-09-2020 Medical Office Chesterfield 15,000 Proposed
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Metro: RichmondAs of 28-May-2020CustomerID:1075682
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
32
Watkins Centre710 Watkins Centre Parkway Midlothian, VA23114
Leasing Agent Name: Jamie GalantiLeasing Agent Phone: (804) 433-1825Leasing Agent Company: CommonwealthCommercial
01-04-2019 Office Chesterfield 350,000 1 Planned
33
Virginia Urology9101 STONY POINT DR RICHMOND, VA 23235
Developer Phone: (866) 449-6637Developer Company: Highwoods Properties
01-03-2019 Medical Office Richmond 87,000 1 3 11/2017 9/2018 Complete
Submarket: Not in a Reis submarket
34
Manakin Towne68 Broad St Rd Manakin Sabot, VA 23103
Developer Name: Scott GaeserDeveloper Phone: (804) 364 - 8050Developer Company: Towne & Country PartnersLLC
11-05-2019 Office Goochland 36,000 2 2 Planned
35
Fulton Yards Route 5201 Orleans St Henrico, VA 23231
Developer Name: Landon ZimmerDeveloper Phone: (910) 763 - 4669Developer Company: Zimmer DevelopmentCompany
06-27-2019 Office Henrico 65,000 1 5 Planned
36
Fulton Yards Nicholson Street201 Orleans St Henrico, VA 23231
Developer Name: Landon ZimmerDeveloper Phone: (910) 763 - 4669Developer Company: Zimmer DevelopmentCompany
06-27-2019 Office Henrico 24,000 1 5 Planned
37
Byrd Center Ph 32724 Charles City Rd Henrico, VA 23231
Owner Phone: (703) 906 - 5461Owner Company: Byrd 2 LLC
05-27-2020 Office Henrico 45,000 1 1 Proposed
38
The Notch at West Creek Mob Bldg 3W BROAD ST @ RTE 288 MANAKIN SABOT,VA 23103
Developer Name: JUSTINDeveloper Phone: (804) 270-0015Developer Company: THE LINGERFELTCOMPANIES
04-30-2019 Medical Office Goochland 60,000 1 3 Proposed
39
8118 Shady Grove Road Medical Office Bldg 28118 Shady Grove Rd Mechanicsville, VA 23111
Owner Name: Kay FearnowOwner Phone: (804) 746 - 0721Owner Company: Private
04-22-2020 Medical Office Hanover 13,000 1 1 Proposed
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No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.
GroundbreakEst.
Completion Status
40
8118 Shady Grove Road Medical Office Bldg 18118 Shady Grove Rd Mechanicsville, VA 23111
Owner Name: Kay FearnowOwner Phone: (804) 746 - 0721Owner Company: Private
04-22-2020 Medical Office Hanover 20,000 1 1 Proposed
41
T-Mobile Call Center4571 S Laburnum Ave Henrico, VA 23231
Owner Name: Jamie KniselyOwner Phone: (704) 366 - 7337Owner Company: Aston Properties
03-04-2020 Office Henrico 131,000 1 1 Planned
42
Alcoholic Beverage Control AuthorityHeadquartersPole Green Rd & I-295 N Mechanicsville, VA23116
Developer Name: William Jr.Developer Phone: (804) 643 - 4200Developer Company: Riverstone Properties
01-14-2020 Office Hanover 102,000 1 3 Planned
Copyright 2020 Reis, Inc.
Sales Trend
Sales TrendOffice - 1Q 2020Prepared By Reis, Inc.
Metro: RichmondCustomerID:1075682
Copyright 2020 Reis, Inc. Page 381075682
1Q 2020 Metro Statistics Metro Statistics - 12 Month RollingMean Median 25th Percentile Mean Median 75th Percentile
Cap Rate 9.5% 9.4% 9.4% 9.5% 9.4% 9.8%Size 66,619 60,654 37,979 92,080 70,002 114,709Sale Price $7,262,500 $5,900,000 $2,925,000 $6,216,667 $4,125,000 $7,987,500Price/SF $109 $104 $72 $68 $92 $104Number of Floors 2 2 2 2 2 3Year Built 1987 1985 1984 1981 1985 1989
Submarkets1. CBD
2. CBD West
4. Southwest
5. Northwest
Most Recent Transactions
City, State Submarket Year Built Floors
Price PerSq Ft
Range Sale Date
Reis SalesComparables
Number
1. Hanover, VA Outside Delineated Submarkets 2008 1 $250 - $299 Q2 2020 60040012. Glen Allen, VA Northwest 2006 1 $150 - $199 Q2 2020 60031153. Henrico, VA Northwest 1984 3 $100 - $124 Q1 2020 59466574. North Chesterfield, VA Southwest 1997 2 $75 - $99 Q1 2020 59623165. Hanover, VA Outside Delineated Submarkets n/a 2 $100 - $124 Q1 2020 59461836. Glen Allen, VA Northwest 1985 1 $100 - $124 Q1 2020 59293277. Henrico, VA Northwest 1980 4 $100 - $124 Q4 2019 58847498. Chester, VA Outside Delineated Submarkets 2019 1 $525 - $599 Q3 2019 57724289. Richmond, VA Northwest 1974 4 $0 - $24 Q2 2019 567808810. Midlothian, VA Southwest 1989 2 $50 - $74 Q2 2019 565638011. North Chesterfield, VA Southwest 2006 2 $250 - $299 Q2 2019 563964712. Henrico, VA Northwest 1981 2 $75 - $99 Q1 2019 560198713. Midlothian, VA Southwest 1989 4 $75 - $99 Q1 2019 552113514. Midlothian, VA Southwest 2017 1 $375 - $449 Q1 2019 551950015. Richmond, VA Northwest 1997 6 $125 - $149 Q1 2019 551375116. Richmond, VA CBD 1870 4 $150 - $199 Q4 2018 551705217. Richmond, VA CBD West 1959 2 $150 - $199 Q4 2018 551966918. Henrico, VA Northwest 1980 1 $100 - $124 Q4 2018 551373819. Henrico, VA Northwest 1980 1 $300 - $374 Q4 2018 549558220. Prince George, VA Outside Delineated Submarkets 2013 1 $250 - $299 Q4 2018 5462212
For details on the transactions listed above, click on the Sales Comparables number link. For historical transactions ortransactions in another Reis market, please go to the Sales Comparables section of the Reis website. www.Reis.com
Sales TrendOffice - 1Q 2020Prepared By Reis, Inc.
Metro: RichmondCustomerID:1075682
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Property Location and Physical Characteristics
Property Name Property Type Multi-Tenant
Address 10501 Trade Ct Building Area (SF) 33,305GBA
City North Chesterfield No. of Bldgs./Floors 1 / 2
State/ZIP/County VA / 23236 / Chesterfield Year Built/Renovated 1997 / --
Metro (Submarket) Richmond (Southwest) Asset Class BC
Comments
Sale Details and Analysis
Sale Date 12 Feb 2020 Reis Cap Rate Analysis ProformaSale Price $2,700,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis
Sale Price PSF $81GBA Rentable Area Assumption 31,306 SF [NRA est]
Vacancy at Sale Potential Rent Revenue $529,310Vacancy Loss/Rate ($45,560) [ 8.5%]
$17.14 Market Rent x 2658 SF
Seller 1. Trade Road Associates LLC / 200 S 10th St, Richmond, VA23219
Effective Rent Revenue $483,749$16.89 In Place Rent x 28648 SF
Expense Reimbursements $37,145 [$1.19 PSF]($7.29 PSF Exp. - Avg. Stop @ $5.99)
x 28648 SF
Free Rent Concessions ($5,380) [$0.17 PSF]Credit Loss ($5,293) [1.0%]
Buyer 1. Trade Court Associates LLC / 10501 Trade Ct, NorthChesterfield, VA 23236
Additional Income $0 [$0.00 PSF]
Effective Gross Revenue $510,221Operating Expenses ($228,205) [$7.29 PSF]
Capital Reserve ($3,131) [$0.10 PSF]Net Operating Income $278,885
Comments Estimated Going-in Cap Rate 10.3%Based on Sale Price of $2,700,000
12-Month Rolling Metro Cap Rate 9.7% (Q1 2020)Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Buyer's Broker
Other Broker Lot Size 320,166 SF / 7.35 AcresInterest Purchased Time on Market
Key Tenants Virginia Department of Emergency Management
Parcel Number 747-70-72-10-200-000
Deed Reference 12631000436
Financing Details Atlantic Union Bank provided a $2,295,000 loan.
Other:
Sales TrendOffice - 1Q 2020Prepared By Reis, Inc.
Metro: RichmondCustomerID:1075682
Copyright 2020 Reis, Inc. Page 401075682
Property Location and Physical Characteristics
Property Name Property Type Multi-Tenant
Address 7200/7202/7204 Glen Forest Dr Building Area (SF) 123,611NRA
City Henrico No. of Bldgs./Floors 3 / 3
State/ZIP/County VA / 23226 / Henrico Year Built/Renovated 1984 / 1994
Metro (Submarket) Richmond (Northwest) Asset Class BC
Comments Property includes a 3-story, 39,032 SF building built in 1984; a 3-story, 43,111 SF building built in 1985 and a 3-story 43,240 SF buildingbuilt in 1987.
Sale Details and Analysis
Sale Date 03 Mar 2020Rec Reis Cap Rate Analysis ProformaSale Price $15,000,000 All per square foot figures are on an annual basis
Sale Price PSF $121NRA Rentable Area Assumption 123,611 SF
Vacancy at Sale 9.0% (excludes sublease) Potential Rent Revenue $2,329,026Vacancy Loss/Rate ($107,957) [ 4.6%]
$19.11 Market Rent x 5649 SF
Seller 1. Grander Capital Partners / (617) 312-0352 / 800 Boylston St,16th Fl, Boston, MA 021162. Glen Forest Richmond LLC
Effective Rent Revenue $2,221,069$18.83 In Place Rent x 117962 SF
Expense Reimbursements $230,486 [$1.86 PSF]($8.09 PSF Exp. - Avg. Stop @ $6.14)
x 117962 SF
Free Rent Concessions ($13,960) [$0.11 PSF]Credit Loss ($23,290) [1.0%]
Buyer 1. Douglas Management & Realty Inc / (954) 746-2221 / 1700 NW66th Ave, Ste 102, Plantation, FL 333132. Glen Forest Office LLC
Additional Income $0 [$0.00 PSF]
Effective Gross Revenue $2,414,306Operating Expenses ($999,895) [$8.09 PSF]
Capital Reserve ($12,361) [$0.10 PSF]Net Operating Income $1,402,050
Comments Estimated Going-in Cap Rate 9.4%Based on Sale Price of $15,000,000
12-Month Rolling Metro Cap Rate 9.7% (Q1 2020)Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Will Bradley and Mark Williford, Colliers International,3021-3205 Commerce Rd, Richmond, VA 23234, (804)320-5500
Buyer's Broker
Other Broker Lot Size 384,983 SF / 8.84 AcresInterest Purchased Time on Market
Key Tenants Sandpiper Hospitality, Heron Creek Benefits, IPC Technologies Inc, McGladrey & Pullen LLP, BrightStar Care, Pearson ProfessionalCenters, Virginia Cancer Institute, Centcom Global Inc, Guild Launch LLC, Advanced Dentistry of Richmond
Parcel Numbers 763-746-7206, 763-746-9903, 764-745-3794
Deed Reference
Financing Details
Other:
7200 Glen Forest Dr was renovated in 1993 and 7204 Glen Forest Dr was renovated in 1994.
Sales TrendOffice - 1Q 2020Prepared By Reis, Inc.
Metro: RichmondCustomerID:1075682
Copyright 2020 Reis, Inc. Page 411075682
Property Location and Physical Characteristics
Property Name Property Type Single Tenant Rental
Address 11798 N Lakeridge Pkwy Building Area (SF) 88,003NRA
City Hanover No. of Bldgs./Floors 1 / 2
State/ZIP/County VA / 23005 / Hanover Year Built/Renovated -- / --
Metro (Submarket) Richmond (Outside Delineated Areas) Asset Class BC
Comments
Sale Details and Analysis
Sale Date Feb 2020 Reis Cap Rate Analysis ProformaSale Price $9,100,000 All per square foot figures are on an annual basis
Sale Price PSF $103NRA Rentable Area Assumption --
Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue --Vacancy Loss/Rate --
Seller 1. CDH Properties LLC / 1101 E Laburnum Ave, Richmond, VA23222
Effective Rent Revenue --
Expense Reimbursements --
Free Rent Concessions --Credit Loss --
Buyer 1. One Liberty Properties Inc / (516) 773-2795 / 60 Cutter Mill Rd,Ste 303, Great Neck, NY 11021
Additional Income --
Effective Gross Revenue --Operating Expenses --
Capital Reserve --Net Operating Income --
Comments Estimated Going-in Cap Rate --
12-Month Rolling Metro Cap Rate 9.7% (Q1 2020)Reported Cap Rate, This Sale None
Additional Details When Available
Seller's Broker Buyer's Broker
Other Broker Lot Size 209,175 SF / 4.80 AcresInterest Purchased Time on Market
Key Tenants CREATIVE (88,003 SF)
Parcel Number 7789-30-7461
Deed Reference
Financing Details
Other:
Click here for a glossary of terms, or go to https://se.reis.com/ReisSEGlossary.pdf
Copyright 2020 Reis, Inc.
About Reis
Reis provides commercial real estate market information and analytical tools to real estate professionals through itsReis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietarydatabase containing detailed information on commercial properties in metropolitan markets and neighborhoodsthroughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution,flex/research & development, self storage, seniors housing properties and affordable housing, and is used by realestate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition,Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associatedwith individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides itsinformation services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.