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Richmond | Year-End Medical Office Report 2021

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“The Medical Office Market remains very active in Richmond. Limited Class A supply and new development due to inflated construction costs have pushed rents higher and driven occupiers and developers to look to renovate existing buildings to meet demand. Out of market investor continues to be strong for stabilized medical properties.”

Malcolm Randolph, SIOR | Senior Vice President

Key Takeaways

  • Net absorption remained positive with 40,344 square feet absorbed. The Virginia Physicians for Women was the largest contributor, adding 41,598 square feet of positive absorption at The Woodlands, a recently delivered medical office property owned by Hammes Partners.

  • The VCU Outpatient Facility was delivered in December. The 603,000 square foot pavilion serves as a one stop shop for outpatient care. VCU’s 500,000 square-foot Wonder Tower is still tracking for a mid-2023 delivery.

  • Asking rates ended a year long slide and rose to $20.92 per square foot.

  • Rising construction costs due to the ongoing supply chain crisis have encouraged elevated tenant improvement allowances while limiting new construction starts.


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Richmond | Year-End Medical Office Report 2021

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Related Experts

Malcolm Randolph Jr.

Senior Vice President

Richmond - North

Malcolm Randolph is a real estate advisor with a focus on the leasing and sales of office and healthcare properties.  Within his area of expertise, Malcolm advises both property owners and companies to assist them make informed, strategic real estate decisions. 

Malcolm has extensive experience developing and executing real estate strategies in Richmond and across the United States for clients ranging from small, local firms to Fortune 500 companies. He and his team guide their clients by offering a range of services including lease transactions, sales, project management, move management, lease administration, lease audit and portfolio strategy.

Malcolm is a founding member of the Richmond office's Medical Advisory Group. He and his team focus on assisting medical practices and medical property owners evaluate their real estate needs and execute strategies to help them meet their goals.  Malcolm and his team’s market share in the medical sector have afforded them unparalleled experience and market data which directly benefits their clients in making the most informed real estate decisions.

In addition to his work with healthcare and office occupiers, Malcolm has established a successful track record of leasing Class A office properties in the Richmond market.   His clients range from locally based property investors to publicly traded real estate investment trusts (REITs).  In this role, Malcolm and his team advise their clients on the repositioning, renovation, marketing and leasing of a variety of office assets. 

A native of Richmond, Malcolm began his career in the commercial real estate industry in 2003 with the same firm that became Colliers International Virginia in 2019.  He was elected as a principal of the firm in 2011. 

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John Carpin

Senior Vice President

Richmond - North

John Carpin has over 20 years of experience in the commercial real estate industry, with his primary responsibilities including landlord representation of industrial and office/medical properties for both institutional and local owners. In addition, he is involved with tenant representation for both national and local clients. In these capacities, John has represented landlords and tenants in the identification, acquisition and disposition of commercial assets. Since 1996, John has completed over 850 transactions totaling over $276 million in value and has been involved in over 10 million square feet of leasing transactions, while handling a portfolio of over 2.5 million square feet of office/medical and industrial properties.

In addition to Landlord and tenant representations, John has experience in investment/building and land sales. This work has provided vital experience in the building development process (pro forma evaluation), project management, (P.O.D. process, selection of architects, engineers and contractors, etc.) and lease procurement and negotiations.

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Catherine Walker

Associate

Richmond - North

Mrs. Walker joined Colliers in November 2017.  She specializes in leasing office, flex and medical buildings, representing both tenants and landlords.  She comes from a direct sales background in DC & Maryland after graduating from Virginia Tech in 2013 with a degree in Communications. 

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