Key Takeaways
• Building 1 at Sauer Industrial Center traded for $67.5 million, or $151
per-square-foot. The recently delivered property was fully leased with
Mondelez as the sole tenant at the time of sale.
• 1.2 million square feet was delivered, with just over 600,000 SF as
high-bay spec space. An additional 1.3 million square feet was added
to the pipeline, with AutoZone’s new distribution center claiming
800,000, leaving the rest to Ashton Creek, a two-building, 525,000
square foot spec project in Colonial Heights.
• Net absorption closed the quarter at 3.34 million square feet, lifting
12-month net absorption to 5.56 million square feet. This was fueled
by large move-ins from Sam’s Club and Coca-Cola in recently delivered
spec product.
“Elevated industrial demand paired with a healthy
development pipeline propelled Richmond’s industrial
market to new levels. New developments continued to be
a driver of market activity in both under construction and
recently delivered product. Fundamentals are expected to
remain robust throughout the remainder of the year as more
product is added to the market.”
John Vithoulkas | Research Analyst