Richmond Office Figures Q1 2025

The Richmond office market recorded 247,600 sq. ft. of occupancy gain during the first quarter of 2025, driving vacancy down 40 basis points (bps) to 11.9%.

The most notable move-in during the quarter was Bon Secours’ occupancy of 26,500 sq. ft. of Class A space at 2230 W Broad Street. The building is part of the Sauer Center Phase II project and delivered in Q2 2024. Bon Secours now occupies half of the 53,000 sq. ft. property while the other half remains available for lease. Additionally, New York Life moved into 19,068 sq. ft. at Innsbrook Commons and Eastern Virginia Career College took occupancy of 11,379 sq. ft. at the 4900 Building also located in the Innsbrook submarket. As for move-outs, Carepoint Holdings permanently closed its location at Highwoods Two medical office, contributing 37,511 sq. ft of negative absorption.

The Timmons Group’s new headquarters at 7053 Celebration Park Avenue delivered 150,000 sq. ft. during the first quarter. The Timmons Group, Chesterfield County Public Schools, and Chesterfield County Virginia Economic Development all moved into the property upon delivery. Thalhimer Realty Partners’ 51,000 sq. ft. project at 5800 Patterson Avenue is the only remaining office property under construction. The project is 100% preleased to multiple tenants, including 26,000 sq. ft. to Bon Secours. Overall asking rates held steady at $21.67 per sq. ft. per annum on a full-service gross basis.