Richmond's commercial real estate market is demonstrating significant activity, with a series of high-value sales and diverse leasing deals closing across the region. Recent transactions highlight strong investor interest in key commercial corridors, particularly in Chesterfield, Henrico, and the City of Richmond, signaling a dynamic period for local business expansion and property investment.
Two separate sales each reached the $1.7 million mark, leading a flurry of deals that also saw robust leasing from office, retail, and industrial tenants. The activity spans multiple sectors, from professional services and contracting firms to new restaurants and fitness studios, painting a picture of a broad-based economic landscape.
Key Takeaways
- Two major commercial properties sold for $1.7 million each, one in Colonial Heights and another in Richmond.
- Leasing activity was strong, with office furniture company MOI Inc. securing a large 9,040-square-foot space.
- Chesterfield County emerged as a hotspot for new leases, attracting a variety of businesses including contractors, service providers, and retailers.
- New food and beverage establishments, including Paris Baguette and Otto Eats, are expanding into the Richmond area.
- The market shows a healthy mix of sales and leases across Richmond, Henrico, Chesterfield, and Hanover counties.
Top-Tier Sales Signal Investor Confidence
The top end of the market was defined by two significant transactions, both closing for an identical price of $1.7 million. This parallel activity in different parts of the metro area suggests widespread investor confidence.
In Colonial Heights, Apple Retail Properties acquired a 4,863-square-foot building at 796 Southpark Boulevard. This sale underscores the continued commercial appeal of the Southpark corridor. The seller was CDA Pan Colonial Heights LLC.
Simultaneously, in the city of Richmond, a 10,200-square-foot property at 5000 Old Midlothian Turnpike was purchased by PMT Properties LLC from Old Midlothian 5000 Associates. At more than double the square footage of the Colonial Heights property for the same price, this deal highlights the diverse valuation of commercial assets based on location and building type.
By The Numbers: Major Transactions
- $1.7 Million: Sale price for 4,863 sq. ft. in Colonial Heights.
- $1.7 Million: Sale price for 10,200 sq. ft. in Richmond.
- $1.575 Million: Sale price for a 5,002 sq. ft. property in Henrico.
- $5 Million+: Combined value of the top three reported sales.
Rounding out the top sales, a 5,002-square-foot building at 4306 S. Laburnum Ave. in Henrico was sold for $1.575 million. The property was purchased by S & L Properties Richmond LLC from 8th & N Condos LLC, indicating strong interest in commercial properties along the Laburnum Avenue corridor.
Leasing Market Buzzes with New Tenants
The leasing side of the market was equally active, with several companies securing substantial space to support their operations and growth. This activity points to a healthy demand for commercial space as businesses expand or establish a new presence in the region.
Office and Professional Services Lead the Way
The largest lease was signed by MOI Inc., an office furniture and interior solutions company, which took 9,040 square feet at 3200 W. Broad St. in Richmond. This move signals a significant commitment to the Scott's Addition area, a neighborhood known for its dynamic mix of commercial and residential spaces.
In the downtown area, public relations firm Padilla Speer Beardsley leased 6,138 square feet at 115 S. 15th St., reinforcing the central business district's appeal for professional service firms. Further out in Henrico, The Chartwell Law Offices leased 1,869 square feet on Cox Road, and Easther Meade LLC took 3,107 square feet on Westerre Parkway.
Why This Matters
Robust leasing activity is a key indicator of economic health. When companies like MOI Inc. and Padilla lease large spaces, it suggests they are confident about future business prospects and are actively hiring and expanding. This creates jobs and stimulates further economic activity in the surrounding areas.
Retail and Food Service Expansion
The Richmond region's retail and dining scene is also growing. The international bakery chain Paris Baguette has leased 3,000 square feet in Chesterfield at the intersection of Midlothian Turnpike and Old Buckingham Road, marking a notable entry into the local market.
Other food-related leases include:
- Otto Eats: Leased 3,624 square feet at 400 Hull St. in Richmond's rapidly developing Manchester neighborhood.
- CP Baking Co.: Secured 1,278 square feet on N. Parham Road in Henrico.
- Lucas Pizza Express: Took 1,100 square feet on E. Sliding Hill Road in Ashland.
These new establishments reflect a growing consumer demand for diverse dining options and contribute to the vibrancy of their respective neighborhoods.
Chesterfield and Henrico Attract Diverse Businesses
Chesterfield County was a hub of leasing activity for a wide range of businesses. S&L Legacy Contracting secured a 4,247-square-foot space at 3501 Courthouse Road, highlighting the demand from the construction and trades sector.
Other notable leases in Chesterfield include:
- Intelligent K9: 2,033 square feet on Hull Street Road.
- A New Life Outreach Family Services: 1,800 square feet on Huguenot Road.
- Sitting Pretty: 1,557 square feet in Sycamore Square.
Henrico County also saw a healthy mix of new tenants. Vivos Academy, an educational service, leased 2,507 square feet on Gayton Road. Fitness brand PVOLVE leased 1,820 square feet on W. Broad Street, and West End Therapy Associates expanded its existing space on Fitzhugh Avenue by 1,149 square feet. This expansion indicates organic growth from existing local businesses, a positive sign for the county's economic stability.
Smaller Deals Highlight Small Business Growth
While large transactions often capture headlines, a series of smaller sales and leases across the region point to a thriving small business ecosystem. In Hanover, Fleet Reps purchased a 1,500-square-foot condo for $325,000, while in Richmond, MSA3 LLC acquired a 1,763-square-foot property on Nine Mile Road for $330,000.
These deals, though smaller in scale, are crucial for local economic development. They represent entrepreneurs and small companies investing in their communities, creating jobs, and providing essential services. Leases for businesses like Brynic Solutions in Goochland (2,000 sq. ft.) and Luxe & You in Richmond (1,500 sq. ft.) further illustrate this trend of localized business growth across the entire metro area.
