Richmond Industrial Figures Q1 2025

The Richmond industrial market recorded 329,800 sq. ft. of positive net absorption during the first quarter, driving vacancy down slightly to 3.5%. Notable move-ins include Amazon’s occupancy of 188,000 sq. ft. at 1701 Bermuda Hundred Road and Fullscript’s move into 121,500 sq. ft. at 12063 Washington Highway. Counterbalancing these two moves was Triple Diamond Glass’ move out of 292,000 sq. ft. at 8800 Wells Station Road.

No new industrial product delivered during Q1, but the development pipeline remains active. Axial Industrial by Crescent Communities broke ground on AXIAL Rockville 64, a 335,000 sq. ft. Class A property in Rockville. The project will have two buildings and is set on 29 acres. There are currently nine properties totaling 3.9 million sq. ft. under construction across the Richmond market.

Tenants signed 19 leases totaling 892,000 sq. ft. during the first quarter, down from the above-average levels posted in Q4 2024. First quarter leasing levels fell below the post-pandemic average as sustained low vacancy rates present a challenge to finding space. Overall asking rates increased slightly to $8.46 per sq. ft. per annum on a triple net basis.