Richmond Office Market
The Richmond office market experienced 296,000 SF of positive net absorption during the fourth quarter of 2025, ending the quarter at a 13.3% vacancy rate, a tightening of 80 basis points quarter-over-quarter and 20 basis points year-over-year. This positive net absorption was spread throughout the market, with every region performing positively during the quarter. Overall, the market experienced over 100,000 SF of positive net absorption during 2025, continuing the market’s positive performance from 2024. Rents remained stable in 2025, ending the year at $23.43/SF, relatively flat quarter-over-quarter and an increase of 0.7% year-over-year. There was one delivery during the year, a Class A, two-story property located at 15350 E West Road in Midlothian. It delivered in October and brought 50,000 SF of space to the Southwest region. There remain two properties, totaling 62,750 SF, under construction in the market.
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