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News release

RICHMOND, VA

Demand for Class A Office Space in Richmond Outpacing All Other Inventory 

Jones Lang LaSalle shows Class A vacancy down to 11.4 percent from high of 18.3 percent


RICHMOND, September 25, 2013 -- Demand for Class A space in the Richmond market is outpacing demand for all other inventory, according to research analysis from Jones Lang LaSalle.

Overall Class A vacancy is 11.4 percent after reaching a high of 18.3 percent in the fourth quarter of 2009. High levels of availability, rock-bottom Class A rental rates and lofty concession packages have enticed many tenants into higher-grade space.

“Office tenants seeking new or renewal leases in Class A buildings, both in the Central Business District and northwest quadrant of Richmond, continue to achieve desirable economics and concession packages from landlords," said Scott P. Harrison, SIOR, Vice President in the Richmond office of Jones Lang LaSalle. "In the southwest quadrant, Class A office buildings compete feverously for quality tenants with aggressive and creative landlord incentives. The southwest office market is clearly the most competitive and challenging."
As this flight to quality has ensued, vacancy in Class B inventory has begun to climb.

"Class B office properties throughout the metro Richmond area need to engage the renewal and retention process as soon as possible when leases approach expiration, given the competition from the Class A market,” Harrison added.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.