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Market Report

Richmond Office Market Report

4Q 2023

Vacancy Maintains Nationally-Low Standing as Regional
Rent Differences Bear Consideration

Relocations pose dual impacts. With the third-lowest vacancy rate of any major market in the country as of June, Richmond’s office sector has withstood the effects of changing work habits better than most. While less office space is occupied today than before the pandemic, recent leasing reflects ongoing demand from a broad range of tenants for both suburban and core options. The Virginia Department of Social Services is relocating to a 96,000-square-foot office in Glenn Allen, where ColonialWebb is also moving. OrthoVirginia also made a 77,000-square-foot commitment in Midlothian, while Sands Anderson is taking up 35,000 square feet in the Capitol District. These relocations nevertheless leave available older floor plans that will be a challenge to backfill. In some cases obsolete properties could be revamped, such as with the conversion of the Department of Social Services’ previous headquarters into multifamily housing.

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