Richmond Office Market Report
Local Economic Drivers Provide Cautious Optimism
Amid Rising Vacancy in the Richmond Metro
Muted development limits upward pressure on availability. Entering April, Richmond boasted the lowest vacancy rate among major mid-Atlantic markets at 11.6 percent. Recent supply pressure has been minimal, with the metro adding roughly 530,000 square feet of office space since the end of 2019, amounting to only 1 percent of existing stock. This has helped moderate the rise in availability, as the rate has increased by just 30 basis points over the past year ending in March. Large commitments or move-ins by firms, such as CoStar, EAB and Genworth Financial, in Manchester and Innsbrook have softened the impact from large blocks of space being returned to the market. However, overall leasing activity still remains below pre-pandemic norms. The potential for a macroeconomic downturn may continue to hinder space demand in the near-term, resulting in vacancy inching up further throughout this year.