The Richmond metropolitan area's commercial real estate market saw a significant transaction in late October, with Dominion Energy acquiring a large office property in Henrico County for $11.5 million. The deal for a 115,200-square-foot building on Cox Road was the largest sale reported, signaling continued investment in the region's suburban office corridors.
This major purchase was accompanied by a flurry of leasing and sales activity across Henrico, Chesterfield, and the City of Richmond, indicating a dynamic market for office, retail, and industrial spaces. Transactions involved a diverse range of businesses, from professional services firms and healthcare providers to retailers and logistics companies.
Key Takeaways
- Dominion Energy purchased a 115,200-square-foot office building at 4881 Cox Road in Henrico for $11.5 million.
- A separate commercial property on Hungary Spring Road in Henrico sold for nearly $2.5 million.
- Leasing activity was strong across multiple sectors, with notable deals in professional services, transportation, and healthcare.
- Henrico County, particularly the West End, remains a focal point for both high-value sales and new leases.
Henrico County Dominates High-Value Sales
The standout transaction of the period was Dominion Energy's acquisition of the property at 4881 Cox Road from Capital One National Association. The $11.5 million sale underscores the value and appeal of established office locations in Henrico's West End. The building offers substantial space, totaling 115,200 square feet.
Andrew Ferguson and Chris Wallace represented the buyer in the transaction, which closed as the top sale in the recent reporting period.
Another significant sale occurred on Hungary Spring Road in Henrico. On October 15, the property at 2910-2916 Hungary Spring Road was sold by GENSUN LLC to Woodville LLC for a total of $2,465,000. This deal, facilitated by Scott White and Lebs Breeden who represented the seller, further demonstrates investor confidence in Henrico's commercial assets.
The Significance of the Cox Road Corridor
The area around Cox Road in Henrico is a well-established business hub. It is home to numerous corporate offices, retail centers, and professional services firms. Its proximity to major transportation arteries like Interstate 64 makes it a strategic location for large companies like Dominion Energy and Capital One, contributing to consistently high property valuations.
Diverse Leasing Activity Signals Broad Market Health
Beyond major sales, the Richmond area experienced robust leasing activity, reflecting a healthy demand for commercial space across various industries. The deals highlight how different business sectors are expanding their physical footprints.
Office and Professional Services Lead the Way
The largest lease reported was secured by Youngblood, Tyler & Associates, an engineering and surveying firm. The company leased 8,194 square feet at 4405 Cox Road, Suite 100, in Henrico. This move keeps a key professional services firm within the active Cox Road business district.
In Chesterfield County, law firm Dunlap, Bennett & Ludwig entered into a sublease agreement for 4,403 square feet at 9011 Arboretum Parkway. This transaction shows continued demand for office space in the Arboretum area, another of the region's key suburban office parks.
Other notable office and service-related leases include:
- Stuart C. Siegel and Cornerstone RPO leasing 1,172 square feet at 5540 Falmouth St. in Henrico.
- Cornerstone Law Group taking a smaller space of 165 square feet at 1701 Raintree Drive in Henrico.
- CJ Global Enterprises leasing 1,482 square feet at 2727 Enterprise Parkway in Henrico.
Transportation and Logistics Secure Key Locations
The logistics and transportation sector also showed strong activity. Corporate Relocation leased 6,940 square feet at 5300 S. Laburnum Ave. in Henrico, a location that offers excellent access to Richmond International Airport and major highways.
In the city of Richmond, Virgin Med Transportation leased 5,590 square feet at 1519 & 1521 Brook Road. This deal highlights the importance of centrally located properties for service providers that require efficient city-wide access.
A Snapshot of Recent Leasing Activity
Across the Richmond metro, businesses leased tens of thousands of square feet in recent weeks. The top three leases alone—by Youngblood, Tyler & Associates, Corporate Relocation, and Virgin Med Transportation—totaled more than 20,700 square feet of commercial space.
Retail and Healthcare Sectors Expand Footprints
The retail and healthcare sectors were also active, with several businesses leasing new locations or expanding existing ones to better serve their customers. These leases are often a direct indicator of consumer-facing economic health.
Healthcare Providers Grow in Henrico
Healthcare continues to be a significant driver of real estate demand. IvyRehab, a physical therapy provider, leased 3,474 square feet at 3960 Stillman Parkway in Henrico. This type of lease is common as medical service providers seek accessible, neighborhood-level locations.
In another expansion, Eirene Counseling and Consulting added 1,989 square feet to its space at 8100 Three Chopt Road in Henrico, nearly doubling its presence to meet growing demand for mental health services.
New Retail and Service Businesses Open Doors
The retail landscape saw several new leases, indicating that brick-and-mortar locations remain essential for many businesses.
Key retail and service leases include:
- Revelare Kitchens, a home renovation company, leased 2,850 square feet on Dabney Road in Henrico.
- Richmond Sew Vac took 3,059 square feet at 8900 W. Broad St., a major retail corridor in Henrico.
- Top Tier Solar Solutions leased 3,814 square feet on Jahnke Road in Richmond.
- ClearDefense Pest Control of North Richmond secured 3,140 square feet on Janway Road in Henrico.
- The Veiled Mirror, likely a boutique or specialty shop, leased 1,200 square feet on N. 3rd St. in downtown Richmond.
Smaller retail leases also filled key vacancies, with Liberty Tax (700 square feet) and Vapor World and Tobacco (1,777 square feet) taking spaces on West Broad Street and Brook Road, respectively.
Overall, the recent transactions paint a picture of a resilient and diverse commercial real estate market in the Richmond region. High-dollar investments from major corporations like Dominion Energy, combined with steady leasing from a wide array of small and mid-sized businesses, suggest sustained economic activity heading into the final quarter of the year.
