metro: richmond · x the bls reports a seasonally unadjusted unemployment rate of 2.6% in october...

$: Metro: Richmond · x The BLS reports a seasonally unadjusted unemployment rate of 2.6% in October 2019 for the Richmond MSA, down from 2.8% one year earlier. x 0RRG\·V(FRQRP\ FRPUHSRUWVD$
Metro: Richmond

Copyright 2020 Reis, Inc.


ContentsMetro Executive Briefing 2

Reis Observer 5

Metro Trend Futures 13

Current Metro Rent Details14

Rent Growth Comparisons14

Current Metro Vacancy Details14

Vacancy Rate Comparisons15

Inventory Growth Comparisons15

Construction/Absorption Change16

Economic and Demographic Trends17

Metro Area Map18

Metro Data20

Submarket Overview 21

New Construction Listing 23

Construction Deliveries24

Metro Construction Breakdown24

Submarket New Construction Project Tally24

Metro Inventory Details24

Inventory Growth Rankings Forecast25

Construction/Absorption Change25

Metro Area Map25

New Construction Listing27

Sales Trend 33

Activity34

Map34

Most Recent Transactions34

Comparable Group Details36

Metro Executive Briefing

Metro Executive BriefingWarehouse/Distribution - 3rd Quarter 2019Prepared By Reis, Inc.

Metro: RichmondCustomerID:1075682

Copyright 2020 Reis, Inc. Page 41075682

Section 1 - Executive Briefing on Metro Conditions

Average Asking Rent $4.30

● Up 0.2% from Q2 2019.

● Expected to finish 2019 at $4.34.

Average Vacancy Rate 9.5%

● Rose by 50 basis points.

● Expected to finish 2019 at 10.2%.

Market Overview

A comprehensive assessment of theRichmond warehouse/distributionmarket reveals that the largestconcentrations of competitivewarehouse/distribution space arelocated in the submarket,representing square feet and of themetropolitan inventory, followed bySouthwest, with a 24.1% share, andSoutheast (17.2%). Since thebeginning of Q4 2010, the fastestgrowing area has been the Southeastsubmarket, adding 2.2 million squarefeet over that period, or 46.4% of totalmetropolitan warehouse/distributioncompletions.

Asking and Effective Rent

Asking rents in the Virginia statecapital advanced by 0.2% during thethird quarter of 2019 to an average of$4.30. Since the same reportingperiod last year, asking rents haveclimbed by 1.2%, up from $4.25.Since the beginning of Q4 2010, themetro as a whole has recorded anannual average increase of 0.6%.Effective rents, which exclude thevalue of concessions offered toprospective tenants, increased by

0.3% during the third quarter to anaverage of $3.92. During the past fourquarters, positive movement in askingrent was recorded in all five of themetro's submarkets.

Competitive Inventory,Employment, Absorption

Total employment in the Richmondmetropolitan area increased by 2,300jobs during the third quarter,amounting to a growth rate of 0.3%,while industrial employmentcontracted by 448. Since thebeginning of Q4 2010, the averagegrowth rate for industrial-usingemployment in Richmond has been0.6% per year, representing theaverage annual addition of 500 jobs.The metro experienced negativeabsorption of 212,000 square feetduring the third quarter. Over the lastfour quarters, market absorptiontotaled 1.1 million square feet, 62.0%greater than the average annualabsorption rate of 650,444 square feetrecorded since the beginning of Q42010. From an historical perspective,the third quarter vacancy rate is 3.0percentage points lower than the12.5% average recorded since thebeginning of Q4 2010.

Outlook

Between now and year's end, 562,000square feet of competitivewarehouse/distribution stock will beintroduced to the metro, and Reisestimates that net total absorption willbe positive 189,000 square feet.Consequently, the vacancy rate willcontinue to drift upward to finish theyear at 10.2%. During 2020 and 2021,construction activity undersurveillance is expected to deliver atotal of 661,000 square feet. Industrialemployment growth at the metro levelduring 2020 and 2021 is anticipated toaverage -0.6% annually, but over thesame period positive absorption willaverage 496,000 square feet peryear. The market vacancy rate willfinish 2020 at 9.7% and will decline0.4 percentage points to 9.3% by yearend 2021. Between now and year-end2019 asking rents are expected toincrease 0.9% to a level of $4.34,while effective rents will rise by 0.5%to $3.94. On an annualized basisthrough 2020 and 2021, asking andeffective rents are projected toadvance by 2.6% and 2.8%,respectively, to finish 2021 at $4.57and $4.16.


Reis Observer

Reis Observer RICHMOND

1

Published January 10, 2020 THE ECONOMY

Low unemployment still prevails in Richmond, but job growth is sluggish. This could be seen as a mixed position for the metro, with positives and negatives at opposition as 2020 starts. However, another factor emerges: commercial real estate. “From apartments to data centers to hotels, the region’s commercial development market experienced exceptional growth across many sectors in 2019,” Richmond BizSense.com reported December 23rd. “Henrico County has become one of the state’s fastest-growing areas for data center development, a trend that continued throughout 2019, particularly in the county’s White Oak Technology Park,” BizSense.com reported. Infill—the practice of developing within existing buildings or frameworks—continued an “upswing” in 2019. In new construction, there has been hotel “bonanza” in the form of new hotel starts, BizSense.com reported. “One local hotelier in particular, Henrico-based KM Hotels, had a busy year announcing new projects. They include a five-story, 127-room Residence Inn by Marriott hotel at the corner of Floyd Avenue and North Thompson Street off Interstate 195; the state’s first AC Hotel by Marriott at 1300 E. Byrd St., along the south side of the Kanawha Canal; and a new Tru by Hilton hotel in Ashland,” according to this source. industrial demand has stayed strong. “Metro Richmond has long been a player for logistics and industrial space—and 2019 proved it will remain that way going into the new year,” BizSense.com reported. Finishing off the deals is the “Diamond.” “Thalhimer Realty Partners, the investment and development arm of Thalhimer, last month purchased the Wesco Distribution site at 2902 N. Arthur Ashe Blvd. for $3.75 million, city property records show. The 3.2-acre property sits across Boulevard West from the Greyhound bus station and is within view of the baseball stadium across North Arthur Ashe Boulevard,” BizSense.com reported. Sources close to the deal said the building will remain a warehouse for an electrical supply company for several years. With plenty of activity on the commercial real estate front, the latest Current Employment Survey (CES) data from the U.S. Bureau of Labor Statistics (BLS) show the Richmond Metropolitan Statistical Area (MSA) is not faring particularly well. Total non-farm employment is up 6,400 jobs (0.9%) in the 12 months ending in October 2019. Total private employment was up 5,200 jobs (0.9%). These are positive numbers, but an annual gain of at least 1.0% would be welcome. As for individual sectors, there were pluses and minuses across the board. Construction and Related Trades, with 39,700 employed, lost 400 jobs (1.0%). Manufacturing, with

Employment:

• The BLS reports a seasonally unadjusted unemployment rate of 2.6% in October 2019 for the Richmond MSA, down from 2.8% one year earlier.

• Moody’s Economy.com reports a

third quarter 2019 average household income of $146,785 for Richmond. Average household incomes of $161,142 and $143,029 are reported for the top metros in the nation and South Atlantic region, respectively.

Employment Growth:

Employment by Sector:

Reis ObserverJanuary 10, 2020Prepared By Reis, Inc.




2

Published January 10, 2020 32,500 employed, gained 300 jobs (0.9%). Wholesale Trade, with 28,300 employed, lost 200 jobs (0.7%). Retail Trade, a fairly large sector with 64,800 employed, lost 900 jobs (1.4%). Leisure and Hospitality, which covers those industries associated with tourism, lodging and dining, employs 67,700 and posted a solid gain of 2,200 jobs (2.2%). Overall Government employment, large at 113,900 also posted a healthy gain of 1,200 jobs (1.1%) (Richmond is the capital of Virginia). White-collar employment showed both gains and losses. The Information sector is small, with only 7,000 employed. This sector includes web portals and telecommunications, and lost 100 jobs. Financial Activities employs 52,700 and gained a solid 1,300 jobs (2.5%). Professional and Business Services, a large, well-paying sector with 115,900 employed actually posted a loss of 400 jobs (0.3%). Losses in upper echelon employment sectors bear watching. Employment Services, an industry within Professional Services that includes temporary workers, employs 21,600 and lost 1,000 jobs (4.4%). Fortunately, Education and Health Services, with 102,800 employed, gained 2,200 new jobs (2.2%). Household-based data from the BLS show the labor force, which covers those working and those looking for work, increased by 16,477 (2.4%) in the 12 months ending in October. Employment, which by this measure also includes free-lance workers and those who commute to work outside the MSA, increased by 17,866 (2.7%). The overall employment picture here is positive, but there are some weak spots, and certain sectors are showing much better performances than others. For all of Virginia, the Richmond Times-Dispatch reported December 23rd that “Virginia is poised to finish 2019 with its fifth straight year of economic growth and its second straight year of growth exceeding 2.0%, according to a report by economists at Old Dominion University that also identifies some weak points in the economy.” “That is good news, but it also shows that during this [economic] expansion, growth in Virginia has lagged that of the nation,” said Robert M. McNab, a professor of economics and director of the Dragas Center for Economic Analysis and Policy at ODU. OUTLOOK The Times-Dispatch also reported in December “Top executives for small- and medium-sized businesses in central Virginia remain optimistic about sales, capital spending and employment over the next six months.” The fourth-quarter economic outlook survey conducted by the Virginia Council of CEOs and the University of Richmond’s Robins School of Business found that 57.0% of CEOs expect to add jobs in the next six months. Business leaders appear to be confident about 2020.





3

Published January 10, 2020 THE REAL ESTATE MARKET OFFICE

The Richmond general purpose, multi-tenant office market posted a third quarter 2019 vacancy rate of 13.5%. The rate was down 10 basis points for the quarter and up 50 basis points for the year. Vacancy has spent the last few years between 13.0% and 13.9%. The rate hit 14.2% in the second quarter of 2016 and has been lower than that ever since. The third quarter Class A vacancy rate was 12.6%, down 100 basis points from the prior quarter and down 10 over 12 months. The Class B/C rate was 14.8%, up 120 basis points from the prior quarter and up 140 over 12 months. Reis expects overall vacancy to finish 2019 at 13.6% and rise to 14.1% by 2023. Reis reports third quarter average asking and effective rents of $19.15 psf and $16.06 psf, each up 0.4% for the quarter and 0.7% for the year. These are good gains for this market, which generally registers modest annual and quarterly increases. The Class A third quarter asking rent was reported at $21.22 psf and Class B/C at $16.58 psf. Class A rents were up 0.4% for the quarter and up 0.7% for the year, while Class B/C rents were up 0.7% for the quarter and up 1.0% for the year. Reis forecasts overall gains of 0.8% and 0.9%, asking and effective for all of 2019. Gains will eventually reach 1.8% asking and 1.7% effective by 2022. • Virginia Business reported January 2nd, “Chester-based Shamin Hotels has

bought the Richmond Times-Dispatch building in downtown Richmond for $14.462 million from a Berkshire Hathaway Inc. subsidiary, Shamin President and CEO Neil Amin confirmed. Shamin Hotels will be moving its headquarters into the four-story, 172,110-square-foot building at 300 East Grace Street later this year, sharing space with the Richmond Times-Dispatch and other tenants. The building will retain the newspaper’s branding, Amin said.”

Special Real Estate Factors:

• Office: “The Sauer Center development continues to fill out, this time luring a D.C.-based nonprofit to relocate its headquarters to Richmond,” Richmond BisSense.com reported December 19th. “Great Minds, an organization that works with teachers and scholars to develop school curricula for pre-kindergarten through grade 12, is finalizing a lease to take all of 840 Hermitage Road in the Whole Foods-anchored project led by Sauer Properties. Great Minds spokesman Chad Colby confirmed the lease and said they hope to be moved in by fall 2020. Its D.C. office will be retained, as will a third office in Detroit, but the Richmond office will serve as its new HQ. It has leased all 17,000 square feet available in the one-story building near the intersection of Hermitage Road and West Clay Street. Great Minds is leasing all of 840 Hermitage Road.”

• The BizSense.com commercial real estate roundup reported Richmond-based Lynx Ventures is using an Opportunity Zone (OZ) funds to help construct The Current, a $68 million, two-building office, retail, and residential project on a 2-acre surface lot at 400 Hull St. in Manchester.





4

Published January 10, 2020 APARTMENT

Vacancy in Richmond’s 78,246-unit apartment market posted a 3.8% rate in the third quarter of 2019, unchanged for every quarter in the past 12 months. The rate was 3.6% in the second quarter of 2018. Class A vacancy finished the third quarter at 4.9%, up 10 basis points for the quarter and up 10 over the year. The Class B/C vacancy rate was 2.9%, unchanged for the quarter and for the year. Reis forecasts a 4.1% overall vacancy rate for year-end 2019, and 5.0% for 2023. In 2019, Reis reports 1,095 units completed construction in nine projects. The largest of these is the Winterfield at Midlothian, with 238 units. The most recent is the December completion of Building A of the Flats at City View, with 13 units. All told, Reis forecasts new construction and net absorption to total 7,905 and 6,603 units, respectively, from 2019 to 2023. Reis reports four projects totaling 909 units currently under construction for completion in January alone.

The average asking rent was up 0.5% in the third quarter of 2019 to finish at $1,036 per month, while the average effective rent rose 0.5% as well to $994 per month. The year-over-year gains were 2.9% and 3.1%. The market has cooled off since the plus-5.0% gains of 2018. The Class A asking rent, at $1,202 per month, is up 0.4% over the third quarter and up 2.4% over 12 months. The Class B/C asking rent is $878 per month, up 0.5% for the period and up 3.1% over the year. Reis expects overall gains of 3.1% asking and 3.3% for effective rents in 2019. • “In Scott’s Addition, Henrico-based Capital Square is making its first foray into

development using OZ funds to help build its Scott’s Collection, a $90 million, three-phase project that eventually will house hundreds of new apartments along Moore and Clay streets. One of the buildings could be the tallest in the neighborhood. Final regulations for the OZ program are pending at the federal level and could be handed down in the New Year,” BizSense.com reported in December.

• Apartment: “An area developer who’s been on an apartment hot streak in Hanover County is opening the doors to his latest community,” BizSense.com reported January 2nd. “Larry Shaia’s Charter Realty and Development Co. is putting the finishing touches on Cambridge Square Apartments, a 207-unit complex at 7125 Brandy Run Drive, behind the Goodwill store and Food Lion-anchored Brandy Hill Plaza shopping center at Mechanicsville Turnpike and Lee Davis Road. The $36 million project is more than a year in the making, with Shaia purchasing the land in November 2017 for $1.26 million and construction starting in mid-2018…Rents range from $1,100 to $1,700 a month for units ranging from 735 to nearly 1,400 square feet.”

• “Richmond real estate developer Lynx Ventures sold Market Villas, a 31-unit adaptive reuse apartment property, to real estate asset management firm CJehn Partners LLC for more than $3.9 million, Cushman & Wakefield Thalhimer’s Capital Markets Group announced.” Virginia Business reported December 4th that “the property located in downtown Richmond’s historic Shockoe Bottom neighborhood includes first-floor retail space in close proximity to the 17th Street Farmers’ Market.”

Special Real Estate Factors: Continued





5

Published January 10, 2020 RETAIL Community-neighborhood shopping center vacancy finished the third quarter of 2019 at 12.4%, unchanged over the quarter and up 90 basis points over the year. Double-digit vacancy is a fixture here, but the rate had managed to stay in the range of 10.0% to 12.0% the past few years. Having broken that mark in the second quarter, and stayed static in the third, occupancy here is at least stable. Net absorption opened 2019 with negative 40,000 square feet with no new construction. Second quarter followed with negative 56,000, and third quarter with negative 8,000. The 57,350-square-foot West Broad marketplace South is a community shopping center under construction with a June 2020 date. Reis expects the community-neighborhood shopping center vacancy rate to finish 2019 at 11.9%, with gradual increases to follow. Reis reports power center vacancy at 3.2%, up from 2.9% one year earlier. Reis’s third quarter community-neighborhood shopping center market average rents are $18.14 psf asking and $15.59 psf effective, down 0.2% and 0.1%, respectively, from the prior quarter. These rates are up 2.1% and 2.0% over 12 months. Effective rents are still 14.1% lower than asking rents, indicating an active role played by concessions. Asking and effective rents finished 2018 with 2.2% increases. Reis reports a power center asking rent of $24.08 psf, up 6.7% over the year. Reis forecasts rent gain of 1.2% and 1.0% in 2019, with smaller gains to follow • BizSense.com also noted in the Bermuda square purchase that “five of six single-

tenant outparcels fronting West Hundred Road and Jefferson Davis Highway are occupied by Chipotle, SunTrust Bank, Captain D’s, Shoney’s, and Starbucks.” A 0.7-acre outparcel at 2501 West Hundred Road, which has served as a makeshift parking lot for the retail center, is slated to be developed for a Valvoline Express Care Center, sources said.

• Retail: “A national grocery store chain has unloaded a Chesterfield shopping center it picked up two years ago in the wake of a high-profile merger involving its parent company,” BizSense.com reported December 5th. “Giant Food Stores sold the Bermuda Square retail center at 12601-12649 Jefferson Davis Highway to a business entity tied to Nashville-based real estate firm GBT Realty Corp. for $18.6 million, according to county property records.” “Giant purchased the seven-building, 15-acre retail center two years ago for $13.7 million. It most recently was assessed by the county for $10.3 million, according to property records. No plans for the center had been filed with the county’s planning division.”

• “The group behind the redevelopment of a struggling West End mall appears to be cashing in on some of its success at the ever-evolving property. The Rebkee Co. and Thalhimer Realty Partners, which together are transforming Regency Square in Henrico, last week sold two newly constructed and fully leased retail buildings on a 1.6-acre outparcel at 1420 N. Parham Road near the mall’s JCPenney concourse for $7.4 million. The properties sold include the 5,200-square-foot BetterMed Urgent Care building and the adjacent 6,600-square-foot freestanding retail center that houses Panera Bread and PenFed Realty,” BizSense.com reported in November.






6

Published January 10, 2020 TRANSACTION ANALYTICS Office There was no qualifying office sale in the third quarter of 2019, according to Reis. There was one in the second quarter, the $3.6 million ($69 psf) May sale of Waterford 1 in Midlothian, at 52,000 square feet. Amongst active submarkets over the past four quarters, Reis reports the Northwest leading for square feet sold and transaction volume, at 671,546 and $88 million, respectively. The price per-square-foot was $131. One large deal last January accounts for most of that activity. Apartment There were 15 qualifying apartment sales in the third quarter of 2019, Reis reports. The 15 sales totaled $117.9 million at a mean price of $109,000 per unit. The mean sales price was $7.9 million. The mean cap rate was 5.8%. Of the top sales of the previous 12 months, one was in the third quarter. In July, the South Bank, with 147 units, sold for $23 million ($156,463 per unit). Retail Reis reports four qualifying retail sales in the third quarter of 2019 for a transaction volume of $11.4 million. The mean price per-square-foot was $152. The mean sales price was $2.8 million. The mean cap rate was 11.5%, the 12-month rolling cap rate was 7.8%. Amongst active submarkets over the past four quarters, the one with the most activity was the Southwest, with 774,187 square feet sold for a transaction volume of $128 million. The highest price per-square-foot was in the Northwest, at $165, which was only $8.00 more than the Southwest.

* Reis Transaction Analytics includes single sale transactions of $2,000,000 and greater, and excludes portfolio sales where pricing of individual buildings cannot be confirmed.





7

Published January 10, 2020 INDUSTRIAL Vacancy in Richmond’s 46-million-square-foot warehouse/distribution market finished the third quarter of 2019 at 9.5%, up 50 basis points over the quarter. This rate is down 130 basis points over the year. Reis reports average asking and effective rents of $4.30 psf and $3.92 psf, up 0.2% and 0.3% for the quarter and up 1.2% and 1.6% for the year. Rents were weak in the first quarter but have recovered. Net absorption finished 2018 at 1 million square feet, but the 2019 year-to-date total stands at negative 126,000, after negative 212,000 was recorded in the third quarter. Phase 1 of Airport Logistics Center, at 246,760 square feet, is under construction in the Southeast submarket for a February 2020 completion. For the 5.8-million-square-foot Flex/R&D market, third quarter vacancy is 11.4%, up 50 basis points over the quarter and down 280 over the year. Net absorption posted 81,000, 50,000 and negative 18,000 square feet in the first, second, and third quarters. No Flex/R&D space has been added since 2013, and none is under construction. Reis forecasts vacancy to finish 2019 at 10.9%, peak at 11.9% in 2021, and then fall to 10.8% in 2023. Third quarter asking and effective rents are reported at $8.14 psf and $7.32 psf, up 0.5% and 0.4% for the quarter and up 1.5% and 2.2% over 12 months. Reis predicts annual rent gains will be near 2.0% for the next few years. • Richmond BizSense.com’s December 23rd article paid particular attention to the

growing data center development trend, particularly at White Oak Technology Park in Henrico. “While Facebook continues to build a $2 billion data center campus that eventually will house 2.4 million square feet on 172 acres in the park, QTS Data Centers is planning to grow its footprint on 210 acres it owns nearby at 6020 Technology Blvd,” this source stated. QTS “is set to deliver about 2.3 million square feet of new data center space to the area.”


• Industrial: “Three years after arriving on the local grocery scene, a New York-based supermarket chain…has picked Hanover County for a large-scale distribution facility and regional headquarters,” BizSense.com reported December 11th. “Wegmans Food Markets is set to build a 1.1-million-square-foot facility on about 220 acres just east of Hanover County Municipal Airport,” the governor’s office announced. “The $175 million project would create 700 full-time jobs, 140 or so of which would be executive-level positions. Hanover and Virginia won the project over North Carolina, which also was in the running.” In a statement, Wegmans President and CEO Colleen Wegman said the Hanover site was selected for its proximity to the company’s stores and workforce growth.

Unless otherwise indicated, economic and demographic data provided by Moody’s Economy.com

Publication Date: January 2020 © 2020 Reis, Inc.

For additional information on up to 275 markets for the four principal property types plus specialty sectors, visit www.reis.com.

Sector 3Q19 3Q18 Chg

Office 13.5% 13.0% 50 bps

Apartment 3.8% 3.8% 0 bps

Retail 12.4% 11.5% 90 bps

Warehouse 9.5% 10.8% -130 bps

Flex/R&D 11.4% 14.2% -280 bps

Vacancy

Sector Chg

Office $19.15 psf $19.01 psf 0.7%

Apartment $1,036 month $1,007 month 2.9%

Retail $18.14 psf $17.76 psf 2.1%

Warehouse $4.30 psf $4.25 psf 1.2%

Flex/R&D $8.14 psf $8.02 psf 1.5%

Rents3Q19 3Q18





Metro Trend Futures

Metro Trend FuturesWarehouse/Distribution - 3rd Quarter 2019Prepared By Reis, Inc.



Section 3 - Current Metro Rent Details

Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 $ 4.23

1970-1979 $ 4.62

1980-1989 $ 5.04

1990-1999 $ 4.88

2000-2009 $ 5.34

After 2009 $ 6.26

As of 09/30/19

Low 25% Median 75% High

$ 2.00 $ 3.95 $ 4.72 $ 5.48 $ 8.33

26 27

6772

26 27

62

Under$ 2.51

$ 2.52$ 3.73

$ 3.74$ 4.95

$ 4.96$ 6.17

$ 6.18$ 7.39

$ 7.40$ 8.61

$ 8.62$ 9.83

$ 9.84Over

Num

ber

of P

rope

rtie

sLow 25% Median 75% High

0.0% 0.0% 0.0% 0.0% 0.0%

3

248

0 0 0 0 0 2

Under- 0.1%

0.0%0.1%

0.2%0.3%

0.4%0.5%

0.6%0.7%

0.8%0.9%

1.0%1.1%

1.2%Over

Num

ber

of P

rope

rtie

s

3 Negative Growth 250Positive Growth

As of 09/30/19 Qtr Ending 09/30/19

Section 4 - Rent Growth Comparisons

Asking Rent Growth

Quarterly Annualized Annualized Forecast

3Q19 2Q19 YTD Avg 1 Year 1 Year 3 Year 5 Year

Richmond 0.2% 0.7% 0.3% 1.4% 1.9% 2.4% 2.6%

South Atlantic 0.8% 0.8% 0.7% 2.8% 2.7% 2.9% 2.8%

United States 0.5% 0.5% 0.6% 2.8% 2.7% 2.8% 2.9%

Period Ending: 09/30/19 06/30/19 09/30/19 12/31/18 12/31/19 12/31/21 12/31/23

Metro Ranking

3Q19 2Q19

N/A N/A

22 9

68 30

09/30/19 06/30/19* of 29 regional metros

** of 101 U.S. metros

2019 2020 2021 2022 20230.0

0.5

1.0

1.5

2.0

2.5

3.0

Richmond

South Atlantic

US

Asking Rent Growth Rate Forecast%

Period ending 12/31/23




Section 5 - Current Metro Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 17.7%

1970-1979 21.2%

1980-1989 20.0%

1990-1999 23.9%

2000-2009 21.9%

After 2009 14.4%

As of 09/30/19

Low 25% Median 75% High

0.0% 0.0% 0.0% 25.7% 100.0%

146

8 10 12 13 151

48

Under5.0%

5.1%10.0%

10.1%15.0%

15.1%20.0%

20.1%25.0%

25.1%30.0%

30.1%35.0%

35.1%Over

Num

ber

of P

rope

rtie

s

As of 09/30/19

Section 6 - Vacancy Rate Comparisons

Vacancy Rates



Richmond 9.8% 9.0% 9.0% 9.1% 9.9% 9.4% 9.1%

South Atlantic 10.4% 10.4% 10.3% 9.7% 10.6% 10.5% 10.3%

United States 9.8% 9.8% 9.7% 9.2% 10.1% 9.9% 9.7%

Period Ending: 09/30/19 06/30/19 09/30/19 12/31/18 12/31/19 12/31/21 12/31/23

Metro Ranking

3Q19 2Q19

N/A N/A

12 10

47 41



2019 2020 2021 2022 2023

8.5

9.0

9.5

10.0

10.5

Richmond

South Atlantic

US

Vacancy Rate Forecast%





Section 7 - Inventory Growth Comparisons

Inventory Growth Rates



Richmond 0.0% 1.0% 0.3% 0.8% 2.2% 1.2% 0.9%

South Atlantic 0.4% 0.5% 0.4% 2.4% 2.0% 1.7% 1.5%

United States 0.3% 0.5% 0.4% 2.2% 1.8% 1.4% 1.2%

Period Ending: 09/30/19 06/30/19 09/30/19 12/31/18 12/31/19 12/31/21 12/31/23

Metro Ranking

3Q19 2Q19

N/A N/A

18 4

55 13



2019 2020 2021 2022 20230.0

0.5

1.0

1.5

2.0

Richmond

South Atlantic

US

Inventory Growth Comparisons Forecast%





Section 8 - Construction/Absorption Change

Construction and Absorption

Quarterly

3Q19 2Q19 YTD Avg

Sq Ft Built Sq FtAbsorbed

Con/AbsRatio Sq Ft Built Sq Ft

AbsorbedCon/Abs

Ratio Sq Ft Built Sq FtAbsorbed

Con/AbsRatio

Richmond 0 -356,000 0.0 437,000 1,000 437.0 145,700 -90,000 -1.6

South Atlantic 5,852,000 4,573,000 1.3 7,569,000 1,262,000 6.0 5,956,300 2,996,000 2.0Average over period ending: 09/30/19 09/30/19 09/30/19 06/30/19 06/30/19 06/30/19 09/30/19 09/30/19 09/30/19

Annualized

5 Year Forecast


Con/AbsRatio

Richmond 415,600 372,800 1.1

South Atlantic 22,199,400 20,459,400 1.1Average over period ending: 12/31/23 12/31/23 12/31/23

0

500,000

1,000,000

1,500,000

Squ

are

Fee

t

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0

5

10

Vac

ancy

Rat

e (%

)

Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption





Section 9 - Economic and Demographic Trends

2014 2016 2018 2020 2022 2024

0.0%

1.0%

2.0%

3.0%

Total Employment Industrial Employment

Richmond Employment Trends and Forecast

Per

cent

age

Cha

nge

Provided by Moody's Economy.com, Period ending 12/31/23

2014 2016 2018 2020 2022 2024

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Richmond South Atlantic US

Total Employment Growth Trends and Forecast Metro vs. Region & U.S.

Per

cent

age

Cha

nge


2014 2016 2018 2020 2022 2024

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

Population Households

Richmond Population/Household Growth Trends and Forecast

Per

cent

age

Cha

nge





Section 10 - Metro Area Map: Richmond




Section 11 - Metro Data

Year Qtr InventorySF/Units Completions Inventory

Growth% Vacant Stock VacancyRate

VacancyChange(BPS)

OccupiedStock

NetAbsorption Asking Rent Ask Rent %

Chg

2014 Y 43,301,000 130,000 0.3% 5,448,000 12.6% -150 37,853,000 792,000 $ 3.95 2.1%

2015 Y 44,561,000 1,260,000 2.9% 5,277,000 11.8% -80 39,284,000 1,431,000 $ 4.03 2.0%

2016 Y 44,975,000 414,000 0.9% 5,070,000 11.3% -50 39,905,000 621,000 $ 4.11 2.0%

2017 Q4 45,466,000 10,000 0.0% 4,465,000 9.8% 0 41,001,000 16,000 $ 4.20 0.5%

2017 Y 45,466,000 491,000 1.1% 4,465,000 9.8% -150 41,001,000 1,096,000 $ 4.20 2.2%

2018 Q1 45,606,000 140,000 0.3% 4,679,000 10.3% 50 40,927,000 -74,000 $ 4.22 0.5%

2018 Q2 45,809,000 203,000 0.4% 5,097,000 11.1% 80 40,712,000 -215,000 $ 4.24 0.5%

2018 Q3 45,809,000 0 0.0% 4,960,000 10.8% -30 40,849,000 137,000 $ 4.25 0.2%

2018 Q4 45,849,000 40,000 0.1% 3,820,000 8.3% -250 42,029,000 1,180,000 $ 4.26 0.2%

2018 Y 45,849,000 383,000 0.8% 3,820,000 8.3% -150 42,029,000 1,028,000 $ 4.26 1.4%

2019 Q1 45,849,000 0 0.0% 3,735,000 8.2% -10 42,114,000 85,000 $ 4.26 0.0%

2019 Q2 46,286,000 437,000 1.0% 4,171,000 9.0% 80 42,115,000 1,000 $ 4.29 0.7%

2019 Q3 46,286,000 0 0.0% 4,527,000 9.8% 80 41,759,000 -356,000 $ 4.30 0.2%

2019 Y 46,848,000 999,000 2.2% 4,624,000 9.9% 160 42,224,000 195,000 $ 4.34 1.9%

2020 Y 47,277,000 429,000 0.9% 4,391,000 9.3% -60 42,886,000 662,000 $ 4.45 2.5%

2021 Y 47,509,000 232,000 0.5% 4,369,000 9.2% -10 43,140,000 254,000 $ 4.57 2.7%

2022 Y 47,712,000 203,000 0.4% 4,186,000 8.8% -40 43,526,000 386,000 $ 4.70 2.8%

2023 Y 47,927,000 215,000 0.5% 4,034,000 8.4% -40 43,893,000 367,000 $ 4.84 3.0%

Year Qtr EffectiveRent

Eff Rent %Chg Cons/Abs Abs/Occ

Stock% Population Pop%Chg Employment Emp%

Chg Households HH%Chg

Avg HHIncome

AHHI%Chg

2014 Y $ 3.59 2.3% 0.2 2.1% 1,263,750 1.0% 635,330 1.6% 495,400 1.4% $127,628 4.5%

2015 Y $ 3.66 1.9% 0.9 3.6% 1,275,390 0.9% 660,000 3.9% 502,130 1.4% $132,852 4.1%

2016 Y $ 3.74 2.2% 0.7 1.6% 1,287,080 0.9% 666,200 0.9% 508,850 1.3% $134,788 1.5%

2017 Q4 $ 3.84 0.5% 0.6 0.0% 1,299,160 0.2% 671,430 0.0% 514,430 0.2% $139,452 0.9%

2017 Y $ 3.84 2.7% 0.4 2.7% 1,299,160 0.9% 671,430 0.8% 514,430 1.1% $139,452 3.5%

2018 Q1 $ 3.84 0.0% -1.9 - 0.2% 1,302,550 0.3% 675,570 0.6% 515,680 0.2% $141,031 1.1%

2018 Q2 $ 3.84 0.0% -0.9 - 0.5% 1,306,170 0.3% 676,530 0.1% 516,740 0.2% $141,474 0.3%

2018 Q3 $ 3.86 0.5% 0.0 0.3% 1,308,150 0.2% 679,500 0.4% 517,950 0.2% $142,471 0.7%

2018 Q4 $ 3.87 0.3% 0.0 2.8% 1,310,170 0.2% 679,000 - 0.1% 519,330 0.3% $144,356 1.3%

2018 Y $ 3.87 0.8% 0.4 2.4% 1,310,170 0.8% 679,000 1.1% 519,330 1.0% $144,356 3.5%

2019 Q1 $ 3.88 0.3% 0.0 0.2% 1,312,190 0.2% 681,430 0.4% 520,490 0.2% $145,399 0.7%

2019 Q2 $ 3.91 0.8% 437.0 0.0% 1,314,170 0.2% 684,030 0.4% 521,890 0.3% $146,467 0.7%

2019 Q3 $ 3.92 0.3% 0.0 - 0.9% 1,316,130 0.1% 686,300 0.3% 523,460 0.3% $146,785 0.2%

2019 Y $ 3.95 2.1% 5.1 0.5% 1,318,080 0.6% 687,970 1.3% 524,900 1.1% $147,603 2.2%

2020 Y $ 4.06 2.8% 0.6 1.5% 1,325,860 0.6% 690,860 0.4% 529,530 0.9% $150,250 1.8%

2021 Y $ 4.17 2.7% 0.9 0.6% 1,333,670 0.6% 692,040 0.2% 534,570 1.0% $154,079 2.5%

2022 Y $ 4.28 2.6% 0.5 0.9% 1,341,700 0.6% 698,400 0.9% 540,000 1.0% $159,397 3.5%

2023 Y $ 4.40 2.8% 0.6 0.8% 1,349,760 0.6% 701,920 0.5% 545,230 1.0% $164,176 3.0%


Submarket Overview

Submarket OverviewWarehouse/Distribution - 3rd Quarter 2019Prepared By Reis, Inc.



Section 12 - Submarket Overview

Submarket Inventory(Buildings)

Inventory(Sq Ft)

AskingRent $ CRD % Vac

%

FreeRent(mos)

Expenses $(Commercial)

LeaseTerm(yrs)

Northwest 60 4,619,000 $ 5.85 - 2.5% 3.1% 5.1 $ 0.63 2.0

Northeast 61 3,934,000 $ 4.63 - 2.3% 11.7% 6.9 $ 1.70 3.0

Southeast 58 7,967,000 $ 4.99 - 6.9% 14.0% 5.1 $ 8.64 3.6

Southwest 93 11,134,000 $ 4.17 - 2.1% 13.1% 6.3 $ 1.63 1.7

North Richmond City 138 5,540,000 $ 5.30 - 3.2% 7.6% 5.6 $ 1.85 2.1


New Construction Listing

New Construction ListingIndustrial - 3rd Quarter 2019Prepared By Reis, Inc.

Metro: RichmondAs of 21-Jan-2020CustomerID:1075682


Section 13 - Construction Deliveries

Completed SF SF Under Construction Totals Planned Proposed Totals

2019 YTD 2020 2020 2021 and Later 2019 and LaterWarehouse/Distribution 436,800 0 246,760 472,960 1,156,520 4,979,800 960,230 5,940,030

Flex/R&D 0 0 0 0 0 395,300 50,000 445,300Manufacturing 0 82,000 0 0 82,000 275,000 0 275,000

N/A 0 0 974,000 0 974,000 2,680,000 0 2,680,000Totals 436,800 82,000 1,220,760 472,960 2,212,520 8,330,100 1,010,230 9,340,330

Section 14 - Metro Construction Breakdown

3.4 %

3.3 %

28.0 %

65.3 %

Metro Construction by Project Type 2018 and Later

Flex/R&DManufacturingN/AWarehouse/Distribution

36.7 %

23.6 %

16.8 %

15.7 %

4.5 %

2.8 %

Metro Construction by Top Five Submarket Share 2018 and Later

SoutheastNon-Submarketed AreasNortheastSouthwestNorthwestOther Submarkets in Metro

Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have afirm completion date.

Section 15 - Submarket New Construction Project Tally

1. Completed 2. Under Construction 3. Planned/Proposed

Submarket Flex/R&D Ware./Dist. Other Flex/R&D Ware./Dist. Other Flex/R&D Ware./Dist. Other GrandTotal

Northwest 0 0 0 0 152,000 0 73,500 359,800 0 585,300

Northeast 0 0 0 0 0 0 283,000 1,878,000 25,000 2,186,000

Southeast 0 0 0 0 246,760 974,000 0 633,430 2,655,000 4,509,190

Southwest 0 436,800 0 0 320,960 0 0 837,500 275,000 1,870,260

North Richmond City 0 0 0 0 0 0 88,800 269,300 0 358,100

Non-Submarketed Areas 0 0 82,000 0 0 0 0 1,962,000 0 2,044,000




Section 16 - Metro Inventory Details

Inventory By Age

Year Built Percent

Before 1970 14.0%

1970-1979 18.0%

1980-1989 23.0%

1990-1999 23.0%

2000-2009 10.0%

After 2009 12.0%

As of 09/30/192014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0.0

0.5

1.0

1.5

2.0

2.5

Richmond South Atlantic US

Industrial Inventory Growth Trend and Forecast%

Section 17 - Inventory Growth Rankings Forecast

South Atlantic Region Cumulative Inventory Growth Forecast Ranking 2019 and Later National Cumulative Inventory Growth Forecast Ranking 2019 and Later

Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast RankCharleston 17.3% 1

Palm Beach 5.6% 15

Nashville 4.9% 16

Richmond 4.5% 17

Greensboro/Winston-Salem 3.6% 18

Tampa-St. Petersburg 3.3% 19

Lexington 1.9% 24

Savannah 29.7% 1

Reno 4.7% 56

Hartford 4.6% 57

Richmond 4.5% 58

Tucson 4.3% 59

Ventura County 3.9% 60

Long Island 1.2% 101

Section 18 - Construction/Absorption Change

Construction and Absorption

Quarterly

3Q19 2Q19 YTD Avg


Con/AbsRatio Sq Ft Built Sq Ft

AbsorbedCon/Abs

Ratio Sq Ft Built Sq FtAbsorbed

Con/AbsRatio

Richmond 0 -374,000 0.0 437,000 51,000 8.6 145,700 -52,300 -2.8

South Atlantic 6,870,000 5,066,000 1.4 7,693,000 1,233,000 6.2 6,341,000 3,213,300 2.0Average over period ending: 09/30/19 09/30/19 09/30/19 06/30/19 06/30/19 06/30/19 09/30/19 09/30/19 09/30/19




Section 19 - Metro Area Map: Richmond

Completed Projects Under Construction Planned/Proposed




Section 20 - New Construction Listing

No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.

GroundbreakEst.

Completion Status

Submarket: North Richmond City

1

Westwood Center Office Warehouse2231 WESTWOOD TRAIL RICHMOND, VA23229

Owner Name: RoseOwner Phone: (804) 330 - 3900Owner Company: Brandywine Realty Trust

12-09-2019 Warehouse/Distribution Richmond 69,300 1 1 Proposed

2

Project Utopia2201 Westwood Ave Richmond, VA 23230

Owner Phone: (602) 418 - 3151Owner Company: Carvana

11-18-2019 Warehouse/Distribution Richmond 200,000 1 2 Planned

3

Dabney 14 Bldg2269 & 2283 DABNEY RD RICHMOND, VA23230

Leasing Agent Name: Amanda TysonLeasing Agent Phone: (804) 521-1830Leasing Agent Company: Brandywine RealtyTrust

06-18-2019 Flex/R&D Henrico 43,500 1 1 Planned

4

Dabney 12 Bldg2269 & 2283 DABNEY RD RICHMOND, VA23230

Leasing Agent Name: Amanda TysonLeasing Agent Phone: (804) 521-1830Leasing Agent Company: Brandywine RealtyTrust


Submarket: Northeast

5

Department of Forensic ScienceTimes Dispatch Blvd & Studley RdMechanicsville, VA 23116

Owner Name: Linda JacksonOwner Phone: (804) 828 - 8420Owner Company: Department of ForensicScience

11-01-2019 Flex/R&D Hanover 283,000 1 Planned

6

ChemTreat Inc Technology Laboratory10041 Lickinghole Rd Ashland, VA 23005

Owner Phone: (804) 935 - 2000Owner Company: CHEMTREAT

05-13-2019 N/A Hanover 25,000 1 1 Planned

7

Pole Green Road Warehouse CenterPole Green Rd & I-295 N Mechanicsville, VA23116

Developer Name: William JrDeveloper Phone: (804) 643 - 4200Developer Company: Riverstone Properties

02-25-2019 Warehouse/Distribution Hanover 463,000 3 1 Planned





GroundbreakEst.

Completion Status

8

Alcoholic Beverage Control HeadquartersPole Green Rd & I-295 N Mechanicsville, VA23116

Developer Name: William JrDeveloper Phone: (804) 643 - 4200Developer Company: Riverstone Properties

01-14-2020 Warehouse/Distribution Hanover 315,000 1 1 Planned

9

Wegmans Headquarters and DistributionFacility DevelopmentSliding Hill Rd & New Ashcake Rd Ashland, VA23005

Owner Phone: (585) 464 - 4620Owner Company: Wegmans Food Stores Inc

01-03-2020 Warehouse/Distribution Hanover 1,100,000 3 4/2020 2/2022 Planned

Submarket: Northwest

10

Wilton Commerce Center5801 Staples Mill Rd Henrico, VA 23228

Owner Phone: (804) 741 - 7368Owner Company: Wilton Development


11

Northlake 9512015 North Lakeridge Parkway Ashland, VA23005

Developer Name: JennaDeveloper Phone: (703) 269 - 0600Developer Company: JLL

10-24-2019 Warehouse/Distribution Hanover 152,000 1 1UnderConstr.

12Crescent Bldg 7LAKERIDGE PKWY @ STONY RUN LNASHLAND, VA 23005

04-22-2019 Flex/R&D Hanover 50,000 1 Proposed

13

Speculative Distribution Center at NorthlakeBusiness Park Ph 1US-1 & N Lakeridge Pkwy Ashland, VA 23005

Owner Name: Gibson WrightOwner Phone: (804) 288 - 2238Owner Company: Dominion Land & DevelopmentCorporation

04-09-2019 Warehouse/Distribution Hanover 238,000 1 Planned

14

Speculative Distribution Center at NorthlakeBusiness Park Ph 2 Bldg 1US-1 & N Lakeridge Pkwy Ashland, VA 23005



15

Speculative Distribution Center at NorthlakeBusiness Park Ph 2 Bldg 2US-1 & N Lakeridge Pkwy Ashland, VA 23005







GroundbreakEst.

Completion Status

Submarket: Southeast

16

White Oak Technology Park Ph 15900 ELKO RD SANDSTON, VA 23150

Developer Phone: (919) 265 - 7595Developer Company: Scout Development LLC

12-17-2019 N/A Henrico 974,000 2 1 3/2020UnderConstr.

17

White Oak Technology QTS Data CenterExpansion Bldg 46020 Technology Blvd Sandston, VA 23150

Owner Name: Kevin SneadOwner Phone: (913) 814 - 9988Owner Company: QTS Data Centers

11-22-2019 N/A Henrico 165,000 1 1 Planned

18




19




20




21

Polykon @ White Oak Technology Park6201 Engineered Wood Way Sandston, VA23150

Developer Phone: (703) 276 - 3961Developer Company: SNC Lavalin

11-08-2018 Manufacturing Henrico 70,000 1 1 10/2016 10/2018 Complete

22 White Oak Technology Park Ph 2 Bldg 1US-60 & VA-60 Richmond, VA 23225

10-11-2019 N/A Richmond 500,000 1 1 Planned







GroundbreakEst.

Completion Status



25

Airport Logistics Center Ph 3S Laburnum Ave Henrico, VA 23231

Developer Phone: (317) 669 - 6000Developer Company: Becknell Industrial

09-25-2019 Warehouse/Distribution Henrico 129,750 1 1 Proposed

26




27

Airport Logistics Center Ph 16101 S LABURNUM AVE HENRICO, VA 23231


09-25-2019 Warehouse/Distribution Henrico 246,760 1 1 2/2020UnderConstr.

28




29

Byrd Center Ph 32724 Charles City Rd Henrico, VA 23231

Owner Phone: (703) 906 - 5461Owner Company: Byrd 2 LLC


30

Airport Distribution Center Bldg D2600 DISTRIBUTION DR HENRICO, VA 23231

Owner Name: Derek HawkinsOwner Phone: (317) 669 - 6007Owner Company: Becknell Industrial

04-10-2018 Warehouse/Distribution Henrico 202,560 1 1 10/2017 4/2018 Complete

Submarket: Southwest

31 Cartograf Manufacturing Facility9401 Courthouse Rd Chesterfield, VA 23832

10-28-2019 Manufacturing Chesterfield 275,000 1 Planned





GroundbreakEst.

Completion Status

32

Willis Commerce Center1410 Willis Rd Richmond, VA 23237

Developer Name: Amanda HenryDeveloper Phone: (571) 527 - 1644Developer Company: Scannell Properties

10-21-2019 Warehouse/Distribution Chesterfield 405,000 1 10/2020 Planned

33

Project Lightning 21501 BELLWOOD RD RICHMOND, VA 23237

Developer Phone: (804) 643 - 3187Developer Company: Devon USA

08-28-2019 Warehouse/Distribution Chesterfield 320,960 1 1 9/2019UnderConstr.

34Goliath Ph 2Battery Brooke Pkwy & Reynolds IndustrialRichmond, VA 23237

07-16-2019 Warehouse/Distribution Chesterfield 175,000 1 Planned

35Goliath Ph 1Battery Brooke Pkwy & Reynolds IndustrialRichmond, VA 23237

07-16-2019 Warehouse/Distribution Chesterfield 436,800 1 1 9/2018 6/2019 Complete

36

Fedex Freight16201 Walthall Industrial Pkwy Colonial Heights,VA 23834

Owner Phone: (901) 818 - 7500Owner Company: FEDEX FREIGHT

03-15-2018 Warehouse/Distribution Chesterfield 140,143 1 1 1/2018 Complete

37

Project River City Proposed Future Expansion1608 Willis Rd Richmond, VA 23237

General Contractor Phone: (757) 366 - 4000General Contractor Company: Armada HofflerConstruction Inc

02-28-2018 Warehouse/Distribution Chesterfield 36,500 Proposed

38

Project River City1608 Willis Rd Richmond, VA 23237

General Contractor Phone: (757) 366 - 4000General Contractor Company: Armada HofflerConstruction Inc

02-28-2018 Warehouse/Distribution Chesterfield 221,000 1 1 Proposed

39

Ruffin Mill Industrial Park15900 Sabra Way COLONIAL HEIGHTS, VA23834

Owner Phone: (804) 518 - 2000Owner Company: Sabra Dipping Company LLC

01-17-2019 Warehouse/Distribution Chesterfield 40,000 1 1 8/2018 12/2018 Complete





GroundbreakEst.

Completion Status

Submarket: Not in a Reis submarket

40

Aldi Division Headquarters and DistributionFacility6537 BOYDTON PLANK RD PETERSBURG, VA23803

Owner Phone: (804) 594 - 5278Owner Company: Aldi

11-01-2018 Warehouse/Distribution Dinwiddie 575,000 1 2 7/2017 7/2018 Complete

41

Virginia I-95 Distribution Ph 14701 Commerce Rd Richmond, VA 23234

Developer Name: Scott AbbottDeveloper Phone: (615) 277 - 2866Developer Company: Panattoni Development Co.

09-21-2018 Warehouse/Distribution Richmond 462,000 1 9/2018 Complete

42

Virginia I-95 Distribution Ph 24701 COMMERCE RD RICHMOND, VA 23234

Developer Name: Scott AbbottDeveloper Phone: (615) 277 - 2866Developer Company: Panattoni Development Co.

09-21-2018 Warehouse/Distribution Richmond 462,000 1 Planned

43

Deepwater Industrial Park3021 E Commerce Rd Richmond, VA 23234

Developer Name: Joseph MarchettiDeveloper Phone: (804) 762 - 0200Developer Company: Hourigan Development

08-06-2019 Warehouse/Distribution Richmond 1,500,000 Planned

44

Green Leaf Medical2804 Decatur St Richmond, VA 23224

Developer Name: PhilDeveloper Phone: (240) 888 - 6780Developer Company: GREEN LEAF

01-06-2020 Manufacturing Richmond 82,000 1 2 8/2019 1/2020 Complete


Sales Trend

Sales TrendIndustrial - 3Q 2019Prepared By Reis, Inc.



3Q 2019 Metro Statistics Metro Statistics - 12 Month RollingMean Median 25th Percentile Mean Median 75th Percentile

Cap Rate n/a n/a 7.2% 8.3% 8.8% 10.4%Sale Price $9,456,667 $3,500,000 $3,037,500 $10,942,674 $4,390,000 $8,700,000Number of Floors 1 1 1 1 1 1Year Built 1995 1993 1969 1997 1984 1991




Most Recent Transactions

City, State Property Type Year Built Floors

Price PerSq Ft

Range Sale Date

Reis SalesComparables

Number

1. Richmond, VA Warehouse 1975 1 $2,000 - $2,500 Q4 2019 5868784

2. Richmond, VA Warehouse 1966 1 $0 - $24 Q4 2019 5860614

3. Ashland, VA Distribution Center 1977 1 $50 - $74 Q4 2019 5835857

4. South Chesterfield, VA Warehouse 2007 1 $25 - $49 Q4 2019 5833943


6. Richmond, VA Manufacturing 1971 2 $0 - $24 Q3 2019 5796860

7. Richmond, VA Manufacturing 1993 1 $25 - $49 Q3 2019 5694788

8. Prince George, VA Distribution Center 2001 1 $25 - $49 Q3 2019 5703440

9. North Chesterfield, VA Distribution Center 1974 1 $100 - $124 Q2 2019 5692848

10. Richmond, VA Warehouse 1951 1 $1,400 - $1,599 Q2 2019 5659521

11. Richmond, VA Flex Office/R and D 1999 1 $75 - $99 Q2 2019 5635479


13. Richmond, VA Flex Office/R and D 1999 1 $125 - $149 Q1 2019 5566345

14. Chester, VA Warehouse 1989 1 $0 - $24 Q1 2019 5577318

15. Richmond, VA Distribution Center 1990 1 $25 - $49 Q1 2019 5564942



18. Richmond, VA Distribution Center 2018 1 $100 - $124 Q4 2018 5512119


20. Colonial Heights, VA Flex Office/R and D 2012 1 $50 - $74 Q4 2018 5496780

For details on the transactions listed above, click on the Sales Comparables number link. For historical transactions ortransactions in another Reis market, please go to the Sales Comparables section of the Reis website. www.Reis.com

https://se.reis.com/comps/index.cfm?event=comps.getSCByRecordID&scid=5868784























Property Location and Physical Characteristics

Property Name Property Type Manufacturing

Address 3310 Deepwater Terminal Rd Building Area (SF) 212,691NRA

City Richmond No. of Bldgs./Floors 1 / 2

State/ZIP/County VA / 23234 / Richmond City Year Built/Renovated 1971 / --

Metro (Submarket) Richmond (Outside Delineated Areas) Ceiling Height (Ft) 21

Comments Masonry

Sale Details and Analysis

Sale Date 18 Sep 2019 Reis Cap Rate Analysis ProformaSale Price $3,500,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $16NRA Total Rentable Area Assumption --

Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Alloy Polymers / (507) 454-6900 / 580 E Front St, Winona, MN559872. Alloy Properties LLC

Effective Rent Revenue --

Expense Reimbursements --

Free Rent Concessions --Credit Loss --

Buyer 1. 3310 Deepwater Terminal LLC / 3310 Deerwater Terminal Rd,Richmond, VA 23234

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --

Comments Est Going-in Cap Rate/EGIM -- / --

12-Month Rolling Metro Cap Rate 7.6% [Q3 2019]Reported Cap Rate, This Sale None

Additional Details When Available

Seller's Broker (Lstg)Matt Anderson, Colliers International, 6641 W BroadSt, Ste 101, Richmond, VA 23230, (804) 240-8833

Lot Size 728,383 SF / 16.721 Acres

Buyer's Broker Key Tenants

Other Broker Alloy Polymers

Interest Purchased

Parcel Number S008-0572-030

Deed Reference 20333

Time on Market

Space Allocation Manufacturing 212,691 SF

Total 212,691 SF

Financing Details Sonabank NA provided a $3,508,750 loan.

Other:





Property Name Property Type Manufacturing

Address 3008 Mechanicsville Tpke Building Area (SF) 90,250NRA

City Richmond No. of Bldgs./Floors 2 / 1

State/ZIP/County VA / 23223 / Henrico Year Built/Renovated 1993 / --

Metro (Submarket) Richmond (Northeast) Ceiling Height (Ft) --

Comments


Sale Date 02 Jul 2019 Reis Cap Rate Analysis ProformaSale Price $3,150,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis


Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. PepsiCo / (914) 253-2000 / 700 Anderson Hill Rd, Purchase, NY105772. Bottling Group LLC




Buyer 1. SilverCap Partners / (704) 790-6744 / 6101 Carnegie Blvd, Ste425, Charlotte, NC 282092. SCP-G Mechanicsville LLC Effective Gross Revenue --

Operating Expenses --Capital Reserve --

Net Operating Income --




Seller's Broker Cam Maxey, NAI Dominion, 3901 Westerre Pkwy, Ste240, Richmond, VA 23233, (804) 380-7254

Lot Size 693,910 SF / 15.93 Acres

Buyer's Broker Key Tenants

Other Broker Pepsi-Cola Bottling (90,250 SF)

Interest Purchased

Parcel Number 800-732-5605

Deed Reference 5867 / 457

Time on Market

Space Allocation Manufacturing 90,250 SF

Total 90,250 SF

Financing Details

Other:





Property Name Property Type Distribution Center

Address 7000 Hardware Dr Building Area (SF) 798,786NRA

City Prince George No. of Bldgs./Floors 1 / 1

State/ZIP/County VA / 23875 / Prince George Year Built/Renovated 2001 / --

Metro (Submarket) Richmond (Outside Delineated Areas) Ceiling Height (Ft) --

Comments


Sale Date Jul 2019 Reis Cap Rate Analysis ProformaSale Price $21,720,000 All per square foot figures are on an annual basis


Vacancy at Sale 100.0% (excludes sublease) Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Ace Hardware Corp / (888) 827-4223 / 2200 Kensington Ct, OakBrook, IL 60523




Buyer 1. Ashley Capital LLC / (212) 755-1900 / 60 E 42nd St, Ste 4530,New York, NY 10165

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --




Seller's Broker Lot Size 6,769,224 SF / 155.4 Acres

Buyer's Broker Evan M Magrill and Bobby Phillips, Cushman &Wakefield, 11100 W Broad St, Glen Allen, VA 23060,(804) 697-3435

Key Tenants

Other Broker Vac Fmr Ace Hardware Corporation (798,786 SF)

Interest Purchased

Parcel Number 350-01-00-003-0

Deed Reference

Time on Market

Space Allocation Warehouse/Distribution 798,786 SF

Total 798,786 SF

Financing Details

Other:

Click here for a glossary of terms, or go to https://se.reis.com/ReisSEGlossary.pdf

https://se.reis.com/ReisSEGlossary.pdf


About Reis

Reis provides commercial real estate market information and analytical tools to real estate professionals through itsReis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietarydatabase containing detailed information on commercial properties in metropolitan markets and neighborhoodsthroughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution,flex/research & development, self storage, seniors housing properties and affordable housing, and is used by realestate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition,Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associatedwith individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides itsinformation services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.

metro: richmond · x the bls reports a seasonally unadjusted unemployment rate of 2.6% in october...

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