The Richmond metropolitan area's commercial real estate market is demonstrating significant activity, highlighted by a $7 million industrial property sale on Deepwater Terminal Road. Recent transactions across industrial, multi-family, and retail sectors in Richmond, Henrico, and Chesterfield counties indicate sustained investor confidence and business expansion in the region.
Major deals include large-scale industrial leases and multi-million dollar sales of commercial buildings and apartment units, reflecting a dynamic and diverse market. This flurry of activity provides a clear snapshot of the economic landscape, with businesses either establishing new footprints or expanding existing operations.
Key Takeaways
- An industrial property at 2320 Deepwater Terminal Road sold for $7 million, marking the top transaction in the recent period.
- The industrial leasing market is also active, with Black’s Tire Service securing a 47,515-square-foot space.
- Investor interest in Richmond's multi-family housing market remains strong, evidenced by several multi-unit property sales.
- Commercial activity is robust in surrounding counties, with significant sales and leases recorded in both Henrico and Chesterfield.
Industrial Sector Leads High-Value Transactions
The industrial real estate sector has emerged as a powerhouse in the latest round of market activities. The most substantial transaction was the sale of a 90,827-square-foot facility at 2320 Deepwater Terminal Road in Richmond. Corridor Properties acquired the site for $7 million from Ashby’s Real Estate Investments.
This sale underscores the strategic importance of properties with logistical advantages. The Deepwater Terminal area is a key industrial hub, and investments of this magnitude signal long-term confidence in the region's shipping and distribution capabilities.
Leasing activity further reinforces the strength of this sector. In a significant deal, Black’s Tire Service leased a 47,515-square-foot building at 707 E. 7th St. in Richmond. This large-scale lease suggests a major expansion or new entry into the local market for the automotive service company.
Nearby, at 3310 Deepwater Terminal Road, Atlantic Constructors secured a 40,000-square-foot lease, adding to the concentration of industrial operations in the area. These large leases are critical indicators of business health and employment growth.
Top Industrial Deals
- Sale: $7 million for 90,827 sq. ft. at 2320 Deepwater Terminal Rd.
- Lease: 47,515 sq. ft. secured by Black’s Tire Service.
- Lease: 40,000 sq. ft. leased by Atlantic Constructors.
Multi-Family Properties Attract Strong Investor Interest
The demand for residential rental properties in Richmond continues to fuel the multi-family investment market. Several transactions involving apartment units highlight this ongoing trend.
Jokity Apartments made a notable investment, purchasing a portfolio of four units for $2.15 million. The properties are located at 506, 508, and 510 Allison Street, as well as 2212 Park Avenue, placing them in desirable city neighborhoods.
In another deal, Parkwood Ave LLC acquired four units at 1908 Parkwood Avenue for $862,000. These acquisitions, while smaller in scale than the major industrial sales, are vital to the city's housing landscape and show that investors see continued value in Richmond's rental market.
Context: Richmond's Housing Market
Consistent investment in multi-family properties reflects the broader trend of urban population growth and high demand for rental housing in cities like Richmond. These sales contribute to the ongoing evolution of neighborhoods and the availability of housing stock for residents.
Another key sale involved a 6,762-square-foot property at 1724A, 1726, and 1726A Altamont Avenue, which was purchased by JSC Altamont LLC for $1.4 million. This transaction further illustrates the active investment climate for multi-unit and mixed-use properties within the city.
Suburban Counties See Robust Commercial Growth
Commercial real estate activity is not limited to Richmond proper. The surrounding counties of Henrico and Chesterfield are also experiencing a significant volume of sales and leases, indicating widespread economic expansion.
Henrico County Highlights
In Henrico, a 16,930-square-foot property at 2910-2916 Hungary Spring Road was sold by GENSUN LLC to Woodville LLC for $2.5 million. This transaction was one of the top three sales in the region. Additionally, JTM Acoustical Real Property sold an 11,330-square-foot building at 2420 Grenoble Road for $1.75 million.
Land acquisition also points to future development. CFT NV Developments purchased two acres at 10300 Washington Highway for $1.8 million, signaling plans for new construction in a high-traffic corridor.
Leasing in Henrico remains strong, with companies like Regal Home Contracting (2,666 sq. ft.) and Corporate Relocation (6,940 sq. ft.) securing new spaces. These leases, though varied in size, collectively contribute to the county's commercial vitality.
Chesterfield County Activity
Chesterfield County also saw several key deals. Sheehy Ford of Richmond expanded its footprint by leasing an 11,250-square-foot space at 291-295 Turner Road. This move reflects confidence in the local auto market.
In the retail and service sectors, new businesses are setting up shop. LIVE Hydration Spa leased 1,527 square feet at 15810 Hull Street Road, while Rock N’ Roll Sushi is moving into a 1,644-square-foot space at 11458 Belvedere Vista Lane. These consumer-facing businesses are often a barometer of local economic health.
On the sales side, HMR LLC purchased a 6,120-square-foot building at 11300 Iron Bridge Road for $948,500, demonstrating continued investment in established commercial corridors within the county.
A Diverse and Active Market
Beyond the headline-grabbing multi-million dollar deals, a multitude of smaller transactions paint a picture of a healthy and diverse marketplace. Businesses of all sizes are actively buying and leasing space across the Richmond metro area.
For instance, The Driving Teacher RVA leased a small 350-square-foot office at 4915 Radford Avenue in Richmond, while Hale Trailer Brake & Wheel took 1,151 square feet in Hanover. These smaller deals are just as important as the large ones, as they often represent small business growth and entrepreneurship.
The sale of a former church at 7740 Cherokee Road for $3.6 million to an undisclosed buyer also stands out. The repurposing of such a large, unique property (31,852 square feet) will be a significant development to watch.
Overall, the combined sales and leasing data from across the region indicate a market characterized by strong demand, diverse investment, and broad-based business expansion. From large industrial warehouses to small retail storefronts, the Richmond commercial real estate landscape appears dynamic and poised for continued activity.
