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News release

RICHMOND, VA

Richmond Suburbs See Highest Investment Sales Volume for Commercial Buildings since 2011

Suburban office transactions in Richmond top $127 million in 2014


RICHMOND, Va., March 2, 2015 – The suburban office investment sales market in the Richmond suburbs reached over $127 million in 2014, the highest investment dollar volume in the suburbs since 2011, according to research from JLL.

The Northwest quadrant, particularly the Innsbrook submarket, has produced the largest number of transactions due to several large portfolio sales.

“All notable office dispositions of late have been in the suburbs. There’s greater investor and asset diversity in the suburbs, single digit vacancy among true Class A buildings and there’s been no new class A office development over the past 7 years making it attractive to both local and national investors,” said Jimmy Appich, Senior Vice President JLL.

“Additionally, prices remain attractive in comparison to tier 1 markets, rent growth has been consistent over the past few years and most of the dispositions have been portfolios making it opportunistic for new investors to take a quick foot hold in the market or existing to expand their footprint,” added Appich.
While several significant investment sales were pending in downtown Richmond, transactions in 2014 were led by local developers purchasing historic, but functionally obsolete office properties with the intention of repurposing them for multifamily or hotel developments.

“With no new development on the horizon in the suburbs, you can expect to see a continuing tightening in the market. Additionally, there are a number of large block requirements for which there is not enough office space available so suburban office construction is inevitable,” added Appich.

About JLL
JLL (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 fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $53.6 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.