“The first half of 2022 continued to show strong retail demand that carried over from 2021, but the sector has shown signs of slowing in the second quarter. Lack of small shop space and big box inventory, challenges in employee retention, inflation and overall concern about the economy have all contributed to diminished leasing in the retail sector. The lack of inventory is not just on the leasing front, but also on the sales front for both pad sites and existing retail properties. There has been huge demand from automotive users, car washes especially, to purchase pad sites or redevelop existing retail sites such as former fast food and bank branch locations. These users tend to pay a premium other retail users cannot afford, pricing a lot of users out of the market. Most pad opportunities have now been acquired and there are very few sites for quality free standing retail users in the Richmond MSA. We expect for all these trends to continue for the remainder of the second half of the year.”
Peter Vick & Harrison Hall | Senior Vice Presidents
- Stony Point Fashion Park sold for $14.6 million to Second Horizon Capital, an impact investment group known for redesigning underutilized properties into economic powerhouses and vibrant destinations. The property was 55% occupied at the time of sale.
- Chesterfield County approved the redevelopment of Spring Rock Green, currently a traditional mall plagued with long-term vacancies. The shopping center will be transformed into an “urban village” with mixed use developments adding 1,200 housing units and 125,000 square feet of new retail space.
- Mixed use and adaptive reuse projects have increased in popularity in recent quarters. Regency Mall adopted the conversion to mixed use by adding a 320-unit apartment building on the site of an empty Sears shell. These projects are expected to deliver increased foot traffic and sales to the mall.