Richmond: Economy/Business/Real Estate

[I miss RVA]

This just in from Axios Richmond:

The city of Richmond had the second-highest rate of applications for new business startups in the entire state in 2022. The city saw 23.2 applications per 1,000 residents for the full-year 2022. Only the city of PETERSBURG - at 23.9 applications/1,000 residents ranked higher.

The RVA metro ranked 36th nationally, ahead of metro Hampton Roads, which clocked in at 38th.

From today's Axios Richmond:

https://www.axios.com/local/richmond/2023/07/18/richmond-startups-virginia-applications

[ancientcarpenter]

44 minutes ago, I miss RVA said:

This just in from Axios Richmond:

The city of Richmond had the second-highest rate of applications for new business startups in the entire state in 2022. The city saw 23.2 applications per 1,000 residents for the full-year 2022. Only the city of PETERSBURG - at 23.9 applications/1,000 residents ranked higher.

The RVA metro ranked 36th nationally, ahead of metro Hampton Roads, which clocked in at 38th.

From today's Axios Richmond:

https://www.axios.com/local/richmond/2023/07/18/richmond-startups-virginia-applications

What's the difference between "business startup" and me just filing an LLC for a business?

How does this chart define startup? Is it "companies that don't have funds yet" ha!

[I miss RVA]

5 minutes ago, ancientcarpenter said:

What's the difference between "business startup" and me just filing an LLC for a business?

How does this chart define startup? Is it "companies that don't have funds yet" ha!

Very good question - I'm not sure how they're defining it.

[eandslee]

A good article about a bi-partisan effort to bring semiconductors to Virginia. Also included in this article, we discover this:

Intel Corp. considered Chesterfield County’s Upper Magnolia Green site for a $20 billion chip factory, but ultimately picked Ohio instead.

https://www.virginiabusiness.com/article/va-semiconductor-alliance-powers-forward/

That checks out with what I was told. I’ve also been told that there are many more “big fish” still swimming around looking for a place to plant their flag. If we can get a budget passed, we’ll see even more money and resources devoted to drawing in the perfect advanced manufacturer…in the Richmond area and other places in VA!

Edited July 19, 2023 by eandslee

[I miss RVA]

14 hours ago, eandslee said:

A good article about a bi-partisan effort to bring semiconductors to Virginia. Also included in this article, we discover this:

Intel Corp. considered Chesterfield County’s Upper Magnolia Green site for a $20 billion chip factory, but ultimately picked Ohio instead.

https://www.virginiabusiness.com/article/va-semiconductor-alliance-powers-forward/

That checks out with what I was told. I’ve also been told that there are many more “big fish” still swimming around looking for a place to plant their flag. If we can get a budget passed, we’ll see even more money and resources devoted to drawing in the perfect advanced manufacturer…in the Richmond area and other places in VA!

Ummm... (yelling at the General Assembly) -- Powhite extension???? Sometime in my lifetime, PLEASE???

Maybe it's a chicken-and-egg situation - but does the county NEED the expressway extension in order to SERIOUSLY improve the roads and infrastructure in and around Upper Magnolia Green? We CAN'T keep letting the big fish swim to other metros. RVA NEEEEEEEEEDS to land an Intel-size fish! One HUGE advantage to the site that LEGO chose for their huge factory that Upper Mag lacks: proximity to major highways - what with both I-95 and I-295 not all that far from where LEGO is building.

I just worry that with every day that passes and Upper Magnolia Green isn't made shovel-ready and the area surrounding it, and the transportation network, infrastructure, etc., isn't ready to launch - we're setting ourselves up to be bridesmaids again. We don't need to be bridesmaids any longer. Let's LAND US SOME BIG KETTLES OF FISH!!! I'm getting sick and damn tired of RVA being "seriously considered" only to be repeatedly passed over for places like Nashville, RDU-CH, somewhere Ohio, anywhere Pennsylvania, upstate New York, South Carolina ... WHEREVER!

Edited July 19, 2023 by I miss RVA

[eandslee]

5 hours ago, I miss RVA said:

Ummm... (yelling at the General Assembly) -- Powhite extension???? Sometime in my lifetime, PLEASE???

Maybe it's a chicken-and-egg situation - but does the county NEED the expressway extension in order to SERIOUSLY improve the roads and infrastructure in and around Upper Magnolia Green? We CAN'T keep letting the big fish swim to other metros. RVA NEEEEEEEEEDS to land an Intel-size fish! One HUGE advantage to the site that LEGO chose for their huge factory that Upper Mag lacks: proximity to major highways - what with both I-95 and I-295 not all that far from where LEGO is building.

I just worry that with every day that passes and Upper Magnolia Green isn't made shovel-ready and the area surrounding it, and the transportation network, infrastructure, etc., isn't ready to launch - we're setting ourselves up to be bridesmaids again. We don't need to be bridesmaids any longer. Let's LAND US SOME BIG KETTLES OF FISH!!! I'm getting sick and damn tired of RVA being "seriously considered" only to be repeatedly passed over for places like Nashville, RDU-CH, somewhere Ohio, anywhere Pennsylvania, upstate New York, South Carolina ... WHEREVER!

Yeah, I think the key lies in the passage of the state budget wherein are the funds to build roads with access to Upper Magnolia and the Powhite parkway extension…or at least about a mile or so of it (baby steps, I suppose). There is money in the budget to build an access road from 360/Hull street to Upper Magnolia as well as some other infrastructure, if I’m not mistaken.  Something like $400M is earmarked for infrastructure improvement for such projects. 
 

Budget has to pass!

[I miss RVA]

2 hours ago, eandslee said:

Yeah, I think the key lies in the passage of the state budget wherein are the funds to build roads with access to Upper Magnolia and the Powhite parkway extension…or at least about a mile or so of it (baby steps, I suppose). There is money in the budget to build an access road from 360/Hull street to Upper Magnolia as well as some other infrastructure, if I’m not mistaken.  Something like $400M is earmarked for infrastructure improvement for such projects. 
 

Budget has to pass!

So even if it passes - HOW LONG will it take to even get started - much less complete - some of these much-needed roads?

Meanwhile - HOW MANY companies will "seriously consider" metro RVA - but the -- AGAIN -- our lack of preparation and infrastructure ends up leaving us standing at the altar as bridesmaids again? My frustration is that we keep getting passed over for a VERY FIXABLE reason - yet we've been faffing around for HOW LONG now? Is it even reasonable to expect that some of these necessary improvements, roads, etc., will even be ready within three years? Five years? 

Meanwhile - these big fish mega-projects are making decisions now, or next year - in other words, they'll likely make their choice LONG BEFORE we get any of these improvements in place.

Will any of them be willing to come here with the "promise" that new roads are being built, new infrastructure is being put in place? This absurd foot-dragging has already cost us Intel and one or two others - we can't afford to keep talking the big talk about all the improvements that will be made to attract big fish - but not walking the big walk of actually implementing said improvements that are necessary to make it happen.

Edited July 20, 2023 by I miss RVA

[wrldcoupe4]

That’s not exactly a local problem.  We’re talking about road funding which is largely state and federal. Takes time to acquire right of way, design and building. They are working through the process.  Not sure where in America highways go from idea to completed in a couple years. 

[Flood Zone]

They don't.

And that makes sense. There's the funding angle. There's often the land acquisition angle. And then there's the forgotten angle that quite often you're forever altering the composition of nature and land, and that should be done only after due deliberation and contemplation. I'm not even speaking of environmental interests per se; I'm speaking more broadly of the inherent obligation to be a good steward of the land under one's control. Add all that up, and it takes time. Should take time. And I'm very much one who likes to see impressive roads (and public transit systems).

[I miss RVA]

3 hours ago, wrldcoupe4 said:

That’s not exactly a local problem.  We’re talking about road funding which is largely state and federal. Takes time to acquire right of way, design and building. They are working through the process.  Not sure where in America highways go from idea to completed in a couple years. 

YES!!! That is EXACTLY my point, @wrldcoupe4!  It DOES TAKE TIME to develop infrastructure and roads. It DOESN'T happen overnight. And while this process is taking time... we're getting passed over again and again for these huge mega projects (like Intel and there was another one) who are actively and vigorously "considering" metro Richmond - but ultimately selecting places like Nashville, RDU-CH, upstate New York, anytown Ohio, among others, because they are YEARS ahead of us in this time-consuming process - and have places like Upper Magnolia Green ALREADY properly prepared to receive a major factor or a company relo or HQ2.

My argument/angst is that there's SO much talk among the powers that be that Upper Magnolia is going to be the game-changer, that will bring a multi-billion-dollar investment and thousands of jobs to the area when we are YEARS away from even breaking ground on roads and infrastructure, much less having them in place. Meanwhile - as the clock ticks - we keep losing out to other cities on these big fish mega projects.

[wrldcoupe4]

Chesterfield and Henrico have had Meadowville and White Oak for mega projects and have been successful ( Meta and Lego for example). Due to that success, Meadowville is nearing buildout which is why Chesterfield has been working to establish Upper Magnolia as their next one. There are still other mega project opportunities in the region like West Creek. 

[I miss RVA]

27 minutes ago, wrldcoupe4 said:

Chesterfield and Henrico have had Meadowville and White Oak for mega projects and have been successful ( Meta and Lego for example). Due to that success, Meadowville is nearing buildout which is why Chesterfield has been working to establish Upper Magnolia as their next one. There are still other mega project opportunities in the region like West Creek. 

All well and good, but we cannot and must not sit on our laurels, not when we continue to fall farther and farther behind our primary competitor metros (RDU-CH, Nashville in particular - and to a limited extent CLT (city/metro, not airport) - and I say regarding them it's now only a limited extent because they have sized-out of our market-size category and it's not an apples-to-apples competition anymore. RVA vs CLT (city/metro, not airport) is basically like trying to match a middleweight against a heavyweight in the boxing ring - it's not a fair fight.)

So imagine if we had landed Intel - a $10 billion factory (was it 10?) would probably be breaking ground by now - and 5,000-plus jobs would be on the way. FIVE-THOUSAND!!

We can't look backwards at what we have. We MUST keep our focus forward and look ahead to what we can chase down and get!

[wrldcoupe4]

Was there feedback from intel that we lost because a road wasn’t built yet? Or were there other factors like incentives, relevant labor pool, etc?

[Flood Zone]

53 minutes ago, wrldcoupe4 said:

Was there feedback from intel that we lost because a road wasn’t built yet? Or were there other factors like incentives, relevant labor pool, etc?

I tend to doubt it. The linked article, just before the portion quote up-thread, states, "Virginia has lagged behind other states, including Arizona, New York, Michigan and Ohio, in building out its semiconductor industry."  Although it says Upper Magnolia was considered, this isn't necessarily an RVA thing. Looks like Virginia is trying to break into a club of sorts. RVA could certainly benefit, but another portion of the article says that NoVa would be posed to be attractive.

Edited July 20, 2023 by Flood Zone

[wrldcoupe4]

https://www.nbc12.com/2023/07/21/business-returns-broad-street-following-closures-disruptions/

[I miss RVA]

On 7/22/2023 at 7:43 AM, wrldcoupe4 said:

https://www.nbc12.com/2023/07/21/business-returns-broad-street-following-closures-disruptions/

Great feature! SOOO good to see Broad Street coming back to life. Just wait: imagine how it will be when the 8-story apartment building adds residents and when VPM/WCVE has their headquarters and TV studios on Broad. Wow...

Now if only we could get some high-rise construction at 4th and Broad and on E. Broad between 6th and 7th (footprint of the old Thalhimer's department store).

[Rooster]

great to see! Theyve also just taken the fencing off the rehab of the nice looking building at 2nd and Broad (on the N side). For lease signs are up...

[rjp212]

Atlantic Union is finally growing again!  They'll be acquiring Danville-based American National Bank & Trust.

Source: https://richmondbizsense.com/2023/07/25/breaking-news-atlantic-union-strikes-deal-to-acquire-danville-based-bank/

 

[eandslee]

20 minutes ago, rjp212 said:

Atlantic Union is finally growing again!  They'll be acquiring Danville-based American National Bank & Trust.

Source: https://richmondbizsense.com/2023/07/25/breaking-news-atlantic-union-strikes-deal-to-acquire-danville-based-bank/

 

Now this is great to see!  Finally, UAB is moving again!  I was concerned a few months ago when they started laying off people and looking to consolidate office space.  This announcement turns the table a bit!  Hopefully, they go on the offensive again and start getting bigger through acquisitions.  Can't keep the status quo and  remain relevant!   Yay for AUB!  Now, let's get some more!

[KJHburg]

Here is your local office market report among others and it is pretty upbeat about the Richmond market in general with the general malaise of the office market across the country.  Your office space per square foot is very low compared to other markets however they might mean it would be difficult to build a new office building and charge the rates per square foot they would need to justify some new construction.  Unless a new tower is significantly preleased.  

https://thalhimer.com/marketwatch/market-reports/richmond-va/

[wrldcoupe4]

Our occupancy has been resilient as demonstrated by our low availability rate, which is about 56% lower than Charlotte’s for example. 

[I miss RVA]

A story that might fly under the radar screen but is another of those quiet - yet big - WINS for metro RVA:

Just as we continue to see bank branches such as Wells Fargo, BoA, etc., closing, yet another out-of-town credit union is planting its flag in metro RVA. This time, Langley FCU is opening it's first-ever branch outside its home base of Hampton Roads. The first RVA branch will be in the former Wells Fargo branch in West Broad Village, 11151 W.  Broad Street in Short Pump. And by all indications, it's probably safe to say that this won't be the only LFCU branch to open in RVA. According to Michael Schwartz' reporting in today's RBS, the credit union said the following in a statement:

“Richmond reflects our desire to serve our growing membership in this market,” the credit union said in an emailed statement. “We believe the Richmond market has tremendous growth potential and we’re very excited to open our first physical branch in this market.”

As I've often said, any time an out-of-town or out-of-state business recognizes the tremendous potential the RVA market offers and takes the Nestea Plunge and invests in opening operations here, it's a HUGE WIN for Richmond. Glad to see Langley enter the market.

From today's Richmond BizSense:

https://richmondbizsense.com/2023/08/21/credit-union-giant-langley-fcu-expanding-into-richmond-market/

[I miss RVA]

Interesting post on the RVA subreddit. It's mind-boggling that (if the calculations are accurate) 21% of downtown is nothing but parking. In most cases, it's surface lots, though there are quite a few parking decks in the mix. But - wow - a fifth of downtown's land area is used for parking.  Monroe Ward has the lion's share of parking lots - though the map (below) includes decks and lots in the southern portion of the legacy Financial District and portions of the greater City Center district. The upside is that a fifth of downtown is ripe for development. The downside is that there is a LOT of desolation downtown - and it lends credence to the whole "ghost town" feel that has, unfortunately, been synonymous with downtown RVA for so many years (decades even). Can you imagine the forest of high-rises that could occupy these spaces - and how transformative such development would be for downtown?

From our friends at RVA/Reddit:

https://www.reddit.com/r/rva/comments/15x94c0/21_of_downtown_richmond_is_parking_lots/?%24deep_link=true&correlation_id=16de3cf7-596f-431c-aea2-5e0ff2763f02&post_fullname=t3_15x94c0&post_index=4&ref=email_digest&ref_campaign=email_digest&ref_source=email&utm_content=post_title&%243p=e_as&_branch_match_id=1043272668928614667&utm_medium=Email Amazon SES&_branch_referrer=H4sIAAAAAAAAA22Q3WrDMAyFnya7S9vYaUoHZQzGXkMYW05F%2FYetLH38Ke22q4Fljr%2FDkYSvzKW97vcVnSPemVJ2gdJtr8tbp0ZdLgimvYjMlWZKJsBSw%2BW6pTr93qlPOeu67n7yNkcBdasvI7e8IyZuIofj%2FTzagyg1QPbg8ppYCirZa8zJATUopt4ozRDyI9Np6T86xALbVp3%2B4Lpgpyaba8VgmHICcsKHyaG2%2FtQfz5PvRz3Y3qBR%2FREP3qvTpP1BSa7kxuCXEJKJuLXT8LfX06Tk8C7OKKCiF4XRUABHMzZ%2BQrAmFkNz%2Bt9teakWfz2BC0ewObH8hNDHGCYO%2BA1bXgEofQEAAA%3D%3D

 

[Shakman]

More land to build upon and up!  Way up.

Edited August 23, 2023 by Shakman

[I miss RVA]

Axios Richmond had a brief write-up and included a useful and informative link to the actual parking study, which I'll include below. 

Not a big surprise that New York (1%), Washington D.C, (3%), Chicago (4%), San Francisco (4%) and Boston (6%) have the least amount of central city land dedicated to parking.  At 21%, Richmond - for as much as we rightfully kvetch about the sea of parking lots (particularly in Monroe Ward) - clocked in at 22nd among the 80 cities surveyed (as ranked by "parking score") - and was the best of the three Virginia cities (RVA, Norfolk, Virginia Beach) included in the study.  Norfolk is at 23% while Virginia Beach is in the lowest quarter of the study list at 35%.

Axios Richmond's write-up can be found here:

https://www.axios.com/local/richmond/2023/08/23/richmond-downtown-parking-lots

Parking Reform Network's report and write-up can be found here:

https://parkingreform.org/resources/parking-lot-map/

Check out how the 80 cities studied stack up as ranked by "parking score":

Edited August 23, 2023 by I miss RVA