RICHMOND, VA--The Richmond, VA office market has been successful at shielding itself from the economic downturn the last few quarters. This quarter, however, the economy finally caught up with the market.
The evidence is particularly clear in the leasing market and key market statistics, according to a second-quarter analysis by Perry H. Moss, (top right photo) CCIM, MBA, GVA Advantis Regional Director of Research, Greater Virginia.
Market Statistics & Summary
Richmond is better positioned and purports better economic figures than most other areas of the state as well as the nation. However, even the best positioned of markets will eventually feel the sting of high fuel prices, a
contracting housing/credit market, and negative job growth.
Virtually every significant statistical category and trend showed weakness this quarter. In some cases, the data reflects an improvement over last year, however, a closer examination reveals that it is the last half of 2007 that is holding up the last 12 months of activity.
This is true, nowhere more, than in the sales market where the 2nd quarter markedly illustrated the capital markets credit issues. Unfortunately, next quarter, the market will absorb the departure of Wachovia Securities, who will be subleasing their considerable space. The CBD Class A vacancy rate could jump from 9.6% to 15.6%, while the Class A NWQ rate will go from 13.2% to 16.0%.
CONTACT:
Perry H. Moss, CCIM, MBA
Regional Director of Research, Greater Virginia
Advantis Real Estate Services Company
707 East Main Street, Suite 1400
Richmond, VA 23219
Tel 804.672.4248
Fax 804.783.1920
E-mail pmoss@gvaadvantis.com
http://www.gvaadvantis.com/
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