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Industrial activity ramps up in Greater Richmond
April 15, 2022
Developers are flocking to the Richmond market for new projects according to recent CoStar Analytics data. More than 12 million square feet of industrial space or about 9 percent of the area’s existing inventory is in development as of March 2022.
Industrial development throughout the region is at an all-time high with more construction underway now than throughout the past 15 years. Greater Richmond offers extensive advantages for industrial projects, so developers and new companies are taking advantage of the region’s untapped potential.
Industrial developments at an all-time high
Richmond ranks among the 60 largest U.S. markets with nearly 135 million square feet of existing inventory. According to CoStar, fall of 2020 marked a turning point for the Richmond market with industrial developments growing every quarter since then.
Among the 60 largest U.S. markets, Richmond has the second highest percentage of inventory currently under construction. Richmond ranks just below Phoenix and outperforms markets like Indianapolis, Ind., Austin and Dallas-Fort Worth, Texas.
Companies are increasingly investing in Greater Richmond, but even more space is underway for new businesses to join the growing community. CoStar notes more than 6 million square feet of industrial space throughout the market is currently available.
Much of Greater Richmond’s industrial development has already been leased:
- Amazon announced a 2.6 million square feet robotics fulfillment center in Henrico, creating 1,000 new jobs
- Walgreens will establish a $34.2 million micro-fulfillment center in Hanover, creating 249 jobs
- Starplast announced a $17.7 million plastics manufacturing facility in Chesterfield, creating 300 new jobs
- Lowe’s will invest more than $50 million in a 1.2 million square foot distribution center in the City of Richmond
Furthermore, about half of Greater Richmond’s inventory under construction has been pre-leased by several major companies:
Greater Richmond advantages
CoStar’s data proves Greater Richmond is a strategic location for company investment. There are several reasons why companies choose Greater Richmond for their operations:
- Electric rates are 30 percent below the national average
- Building costs are 13 percent lower than the national average
- The Richmond MSA boasts a workforce of over 660,000
- Unionization and unemployment are among the lowest in the U.S.
- Local transportation includes four interstates, an international airport and river access to The Port of Virginia, one of the nation’s most technologically advanced seaports
- Its strategic location allows access to 45 percent of the U.S. population within one-day’s drive
- Read more benefits here
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- Topics:
- Advanced Manufacturing
- Other
