Richmond Office Market
The Richmond office market experienced 240,000 SF of positive net absorption during Q3 2025, ending the quarter at a 14.2% vacancy rate, a tightening of 70 bps quarter-over-quarter, although an expansion of 50 bps so far in 2025. This positive net absorption was largely concentrated in the Northwest and CBD regions, which experienced a combined 240,000 SF of positive net absorption during the quarter. The market’s positive performance during the quarter brings optimism after the market saw large amounts of negative net absorption during the first half of 2025. Rents have remained stable so far in 2025, ending the third quarter at $22.43 PSF, relatively flat quarter-over-quarter and year-over-year. There is one property under construction in the market. The Class A, multi-tenant property is located at 15350 E West Road and will bring 50,000 SF of space to the Route 288 Corridor submarket, with an expected delivery of October.
Richmond Industrial Market
During Q3 2025, the market saw 338,000 square feet of positive net absorption, largely due to M.C. Dean occupying 325,500 SF at 11174 Enterprise Parkway in July. The market remains historically tight, ending Q3 2025 at a 5.3% vacancy rate, tighter than the historical average of 5.7%. Despite seeing over 1.3 MSF of positive net absorption year-to-date, the market’s vacancy rate has expanded 20 bps so far in 2025 solely due to deliveries outpacing absorption. Average asking rents ended Q3 2025 at $9.41 PSF, an increase of 5.8% year-over-year. Overall, the market has seen a 62.2% increase in rents since the beginning of 2020. The market’s development remains strong, with the market seeing almost 1.7 MSF of deliveries so far in 2025. Furthermore, construction remains elevated, with almost 8.0 MSF of space currently under construction. User demand is keeping the pipeline steady looking forward into 2026