Blog | 5 min read
4.7 million+ square feet of Class A office space planned for Greater Richmond
January 19, 2023
Blog | 5 min read
January 19, 2023
Throughout the last year, companies and individuals found increased value in Greater Richmond. Virginia site location announcements were up (GRP had a banner FY22 assisting 13 projects) and the region is seeing an influx of residents that are adding to the local workforce.
Community builders are also discovering opportunities in Greater Richmond as seen by several local redevelopment projects.
Currently, nearly 68 million square feet of office inventory is available in Greater Richmond as shown in the bar graph below. Taking into consideration six of the region’s redevelopment projects, Greater Richmond is set to gain more than 4.7 million square feet of new Class A office space totaling an available inventory of at least 72.6 million square feet of office.
Embracing region-wide Environmental, Social and Governance initiatives, much of Greater Richmond’s new office spaces will be constructed with sustainability and community at top-of-mind. Plus, many developments are mixed-use allowing for new homes, shops, restaurants and more that will bolster Greater Richmond’s already superior quality of life.
Henrico County’s 200-acre GreenCity will be an “ecodistrict” that promotes environmental sustainability, civic engagement and inclusion. Anchored by a $250 million, 17,000-seat arena that’s set to be North America’s greenest arena, GreenCity will feature 2.2 million square feet of office space, 280,000 square feet of retail space, 2,400 housing units and two hotels.
The $2.3 million project will break ground early this year. With 2.2 million square feet of office space coming online thanks to this redevelopment, new-to-market companies with ESG goals are sure to find a home in Greater Richmond.
The Diamond District is a $2.4 billion redevelopment project in the City of Richmond to replace a current baseball stadium with mixed-use areas. The project spans 67.5 acres in addition to the 6.6 acres owned by Virginia Commonwealth University. The Diamond District will include 11 acres of park and green space, two hotels, more than 3,000 housing units, 195,000 square feet of retail space and 935,000 square feet of new office space.
According to developers RVA Diamond Partners, the Phase 1 target completion date is set for 2026. The Diamond District will be a good option for new-to-market companies that have their employees’ best interests in mind. Workers that live in the district will have the opportunity to live, work and play all within walking distance. Employees not within walking distance will enjoy the region’s short 24.9-minute average drive into work.
Plans to replace the vacant 2.2-acre Southern States silos include two new buildings along the James River. One is a 20-story apartment tower with co-working spaces and a rooftop bar. The second is a 6-story, 130,000 square foot office building with a 4th floor green terrace, rooftop amenity deck and 11,000 square feet of commercial space on the ground floor.
Hourigan Development anticipates going vertical with the construction in the second quarter of 2023.
Thanks to the redevelopment in mid-town, 1.3 million square feet of 5-star office space will be added to the region’s overall office inventory according to CoStar and more could be on the way. Developers Gumenick Properties are planning for new office space on 2 acres in the Libbie Mill redevelopment project.
The Lake is a Chesterfield County-based mixed-use development project that will create more than 100,000 square feet of Class A office space. According to Taylor Long Properties, there were 17,500+ employees located within 3 miles of the development in 2022. The development stretches 105 acres in total and, in addition to office space, will provide retail and entertainment options like a surf park and live amphitheater events, multifamily homes and townhomes.
The City of Richmond plans to establish an innovation district with the City Center redevelopment project. Already home to life sciences institutions like Virginia Commonwealth University, the VA Bio+Tech Park and the United Network for Organ Sharing headquarters, Greater Richmond’s life sciences hub is 175 years in the making. Deputy Director, Office of Equitable Development, and City Center Project Manager Maritza Mercado Pechin envisions the redevelopment as the “brain” of Greater Richmond’s life sciences hub.
The RFI process for the 9.5-acre City Center redevelopment recently closed with reviews underway. While the square footage of new office space is yet to be determined, one of the goals included in the project specifications is to develop Class A office space in addition to life sciences-focused research buildings.
This Chesterfield-based redevelopment project spans 41.9 acres. In addition to an undisclosed amount of office and retail space, Spring Rock Green will feature up to 1,100 multifamily units, 125 townhouses or condominiums, a hotel, a parking deck and a sports and entertainment facility. “Our vision is to establish a destination community for people to live, work, shop and play,” said Art Collins, president of Collins Enterprises. “The streets will be walkable and have open spaces weaving throughout the development. People will be drawn to the high quality residential, shopping, restaurants and entertainment that creates an exciting overall experience.”