The Richmond metropolitan area's commercial real estate market showed significant activity with several high-value property sales and a diverse range of leasing agreements. Two transactions surpassed the $1 million mark, including a notable $1.3 million sale on Granite Avenue in Richmond, signaling continued investor confidence in the region.
Leasing activity was also strong across multiple sectors, with retail, office, and industrial spaces being filled in Richmond, Chesterfield, Henrico, and surrounding counties. Hardware stores, architectural firms, and medical service providers were among the businesses securing new or expanded locations.
Key Takeaways
- Two commercial property sales in Richmond exceeded $1 million each, totaling over $2.36 million.
- A 0.15-acre property at 122 Granite Ave. sold for $1.3 million.
- Hardware retailers Taylor’s Do It Center and Costello’s Ace leased a combined 27,830 square feet in Chesterfield and Henrico.
- Leasing activity was robust across office, retail, and industrial sectors, indicating broad-based business growth in the region.
Major Property Sales Signal Active Market
Several key property sales highlighted the recent commercial real estate transactions in the Richmond area. These deals reflect a dynamic market with significant capital being invested into local properties.
The largest transaction involved a 0.15-acre property located at 122 Granite Ave. in the city of Richmond. Joe & Laurie Shelby purchased the site for $1.3 million from Granite Real Estate Co. This sale underscores the high value of strategically located parcels within the city.
Another major sale occurred at 3408 W. Leigh St. in Richmond, where B&S Real Estate acquired a 4,900-square-foot building for $1.06 million. The seller was Sisbro Associates. This transaction adds to the list of seven-figure deals shaping the city's commercial landscape.
Top 3 Sales by Value
- $1.3 million: 122 Granite Ave., Richmond (0.15 acres)
- $1.06 million: 3408 W. Leigh St., Richmond (4,900 sq. ft.)
- $365,000: 7115 Bethlehem Road, Henrico (3 acres)
In Henrico County, KM Hotels completed the purchase of a 3-acre parcel at 7115 Bethlehem Road for $365,000. The sellers included Jakhow LLC and the estates of Julian B. Jacobs and Bettie J. Jacobs, among others. This acquisition points to potential new development in a key suburban corridor.
Leasing Activity Spans Retail, Office, and Industrial Sectors
The leasing market was equally busy, with businesses from various industries securing new spaces to accommodate growth and expansion. These transactions were spread across Chesterfield, Henrico, Richmond, and Hanover counties.
Retail and Hardware Stores Secure Large Footprints
The retail sector saw two significant leases by major hardware brands. Taylor’s Do It Center/Pleasant’s Hardware signed a lease for 15,000 square feet at 10011 Hull Street Road in Chesterfield. This move establishes a large retail presence in a high-traffic area.
Similarly, Costello’s Ace Staples Mill LLC leased 12,830 square feet across three units at 9097, 9089, and 9085 Staples Mill Road in Henrico. The deal demonstrates the continued demand for physical retail space for home improvement businesses.
Other retail and service-oriented leases included:
- My Salon Suite leased 5,400 square feet at 4900 Commonwealth Center Parkway in Chesterfield.
- Wash House took 2,500 square feet at 1421 Eastridge Road in Henrico.
- T-Mobile Northeast leased 3,966 square feet at 4521 S. Laburnum Ave. in Henrico.
Office and Professional Services Expand
The office market was active with expansions and new leases. Hanbury Architecture secured a substantial 11,760-square-foot space at 1623 W. Main St. in Richmond, indicating growth in the professional services sector.
In Henrico, several companies expanded their office footprint. Kinloch Capital added 1,816 square feet to its space at 4801 Cox Road. This trend suggests that businesses are reassessing their space needs to support growing teams.
Understanding Commercial Leases
Commercial leases are contracts that allow a business to rent property for commercial purposes. The size, measured in square feet, and location are key factors that determine the lease's value. These agreements are crucial indicators of business health and economic activity in a region.
Additional office leases included:
- Dunlap Bennett & Ludwig subleased 4,403 square feet at 9011 Arboretum Parkway in Chesterfield.
- Baron & Snipes Co. leased 2,675 square feet at 11551 Nuckols Road in Henrico.
- Drive-to-Work leased 1,956 square feet at 2810 N. Parham Road in Henrico.
- A law firm partnership leased 1,260 square feet at 2800 N. Parham Road in Henrico.
Industrial and Specialized Services Leases
The industrial and specialized services sector also reported strong leasing activity. Ground/Water Treatment & Technology leased a 10,000-square-foot facility at 2103 Pine Forest Drive in Colonial Heights. This large lease highlights the need for specialized industrial space in the region.
In Hanover County, Rosendin Electric leased 3,236 square feet at 7443 Lee Davis Road, and JMA Mechanical Services leased 1,500 square feet at 8169 Pine Ridge Road. These leases support the operations of essential trade and technology companies.
Medical and wellness services also expanded. Aspire Recovery leased 4,020 square feet at 1393 Carmia Way in Chesterfield. Meanwhile, the Integrated Veterinary Center of Richmond expanded its existing location by 864 square feet at 9764 Gayton Road in Henrico.
Brokerage Firms Report Numerous Transactions
Several commercial real estate firms were instrumental in facilitating these sales and leases across the Richmond metro area. Their reports provide a comprehensive overview of the market's health.
S. L. Nusbaum Realty Co. was involved in numerous high-profile deals. Nathan Shor represented the seller in the $1.06 million sale on W. Leigh Street and was part of the team handling the $365,000 Henrico land sale. The firm also represented landlords in the Taylor's Do It Center, Aspire Recovery, and Integrated Veterinary Center leases.
Cushman & Wakefield | Thalhimer also played a key role. Reilly Marchant represented the seller in the top sale of the period, the $1.3 million transaction on Granite Avenue. The firm also handled the landlord representation for the Hanbury Architecture and Rosendin Electric leases.
"These transactions, from million-dollar sales to significant retail and industrial leases, reflect a robust and diverse commercial real estate market across the Richmond region."
Other firms reporting deals included CBRE, which represented Kinloch Capital in its office expansion, and Commonwealth Commercial Partners, which handled several office and retail leases in Henrico and Richmond. One South Commercial represented the subtenant in the Dunlap Bennett & Ludwig office sublease in Chesterfield. The consistent deal flow from these firms indicates a healthy and competitive marketplace for commercial properties.
