The cost to rent warehouse space has risen 50% in the last nine months, something many attribute to illegal marijuana cultivation in laissez faire Richmond, driving out legitimate and traditional warehouse users. Vacancies are at 2.2%, essentially a closed market.
Manufacturing space is also almost non-existent at 2.7% vacancy and a 30% rise in the last six months.
There is currently low demand and still plenty of office space with 17% vacancy and a slightly downward trend of rental rates to about $2.30/SF. We need to find a way to make Richmond more attractive for office users.
In order for Richmond to grow manufacturing and warehouse/distribution jobs, someone has to build new space, but there is very little activity. The real estate market is similar, with quite a few new developments being entitled in the last couple of years but almost nothing actually being built. Some attribute this to concern about rent control and just cause putting a damper on the market.