Uncertainty looms as companies shift market strategies
- Sublet space has seen a nationwide increase since the start of the pandemic, Richmond included. From 2017-2019, the average quarterly vacant sublet space in Richmond’s market was 160,769 square feet. At the end of 2020, Richmond’s market closed with 588,482 square feet of vacant sublet space representing 1.3%of total inventory. A notable contributor to this figure comes from Owens & Minor vacating their 90,000 square foot space in Riverfront Plaza. The total space was put up for sublease, with approximately 40,000 square feet already backfilled. Additionally, Berkshire Hathaway’s 79,000 square foot sublease at 6603 West Broad Street demonstrates that demand in Richmond’s market has not faltered.
- Following the failed $1.5 billion Navy Hill project proposed in downtown Richmond, a $2.3 billion development project called GreenCity has been proposed at the site of the former Best Products headquarters in Henrico County. Anchored by a $250 million, 17,000-seat arena, the project, which the developers have deemed will be a mixed-use “ecodistrict”, is expected to include approximately 2 million square feet of office space, 280,000 square feet of retail space, two hotels, as well as 2,400 residential units.