Richmond: Economy/Business/Real Estate

[I miss RVA]

Interesting tidbit from Axios Richmond:

RVA again makes a national top-10 list - this time, River City clocks in at 7th nationally in the number of buildings converted from office space to apartments in 2022. According to Axios, RVA is one of only a handful of cities nationwide where all of its building conversions came from office buildings, as opposed to flips from other types of buildings, including warehouses, etc.

In Virginia, Richmond is just ahead of Norfolk but well behind Alexandria, which was second nationally in office-to-apartment conversions.

On the bigger scale - meaning - flips from all types of buildings, RVA still made the top 20 - checking in at #17 in 2022. The rankings are from a RentCafe study and analysis of cities with the most flips to residential.

From Axios Richmond:

https://www.axios.com/local/richmond/2023/09/05/richmond-apartment-conversions-ranking

The RentCafe article can be found here:

https://www.rentcafe.com/blog/rental-market/market-snapshots/adaptive-reuse-apartments/

Edited September 11, 2023 by I miss RVA

[wrldcoupe4]

That’s like 1 bldg. There must be more in Richmond. It’s not all been new construction. 

Port City and Model Tobacco to name a couple. 

[RiverYuppy]

18 minutes ago, wrldcoupe4 said:

That’s like 1 bldg. There must be more in Richmond. It’s not all been new construction. 

Port City and Model Tobacco to name a couple. 

The 188 figure is referring to 188 buildings that have been converted to apartments, not 188 apartment units.

Edited September 11, 2023 by RiverYuppy

[I miss RVA]

34 minutes ago, RiverYuppy said:

The 188 figure is referring to 188 buildings that have been converted to apartments, not 188 apartment units.

Correct. At least that's how I read it. Looking at Los Angeles - they lead with 1,292 buildings of all kinds having been converted into residential buildings - of them, 692 are former office buildings.

According to Axios' report - RVA is one of a handful of cities in which ALL of the residential conversions are former office buildings. So in RVA's case, 188 office buildings were converted into residential buildings.

Edited September 11, 2023 by I miss RVA

[wrldcoupe4]

Incorrect. They are saying 188 apartments were converted from office space. Which is only accounting for the 188 unit conversion at 7th and Main. There were not 188 buildings in Richmond converted from office to residential last year.  My point was this assertion from axios is wrong:

According to Axios, RVA is one of only a handful of cities nationwide where all of its building conversions came from office buildings, as opposed to flips from other types of buildings, including warehouses, etc.

[I miss RVA]

6 minutes ago, wrldcoupe4 said:

Incorrect. They are saying 188 apartments were converted from office space. Which is only accounting for the 188 unit conversion at 7th and Main. There were not 188 buildings in Richmond converted from office to residential last year.  My point was this assertion from axios is wrong:

According to Axios, RVA is one of only a handful of cities nationwide where all of its building conversions came from office buildings, as opposed to flips from other types of buildings, including warehouses, etc.

Ahhhhhhhh -- I understand. So a major "GFE" - gross factual error - on the part of Axios. 

Might be worth letting them know so they can publish a correction. Big difference between 188 units and 188 buildings!

Thanks for clarifying this, Coupe! 

Edited September 11, 2023 by I miss RVA

[I miss RVA]

Here's another one of those stories that I unquestionably put into the WIN column for RVA. Atlanta Falcon's owner and Home Depot co-founder Arthur Blank is opening Richmond's first PGA Tour Superstore location (and only the second on in Virginia - the other being in Fairfax). The store will be located at 10941 W. Broad Street in Short Pump and is slated to open in early 2024. The Fairfax location opened in 2021. Blank just this month opened locations in Oklahoma City and right here in Chicago (downtown). Getting this retailer - currently 64 stores nationwide and growing - in Richmond is a big WIN for the RVA metro. Interesting nugget from Michael Schwartz' reporting in today's RBS: the chain has been eyeballing Richmond for the past two years.

Either way, this to me is another small story with big implications, indicating that Richmond is increasingly gaining national attention as a place for "it" businesses and retailers to come and do business.

From today's Richmond BizSense:

https://richmondbizsense.com/2023/09/21/national-golf-retailer-pga-tour-superstore-lines-up-first-richmond-area-outpost/

 

Edited September 21, 2023 by I miss RVA

[eandslee]

Richmond is finally #1 in something!

https://x.com/grpva/status/1705282842928820602?s=46&t=o4uerbkBtrd3OGnHPDEKyw

Edited September 22, 2023 by eandslee

[I miss RVA]

21 minutes ago, eandslee said:

Richmond is finally #1 in something!

https://x.com/grpva/status/1705282842928820602?s=46&t=o4uerbkBtrd3OGnHPDEKyw

I'm telingl you - the more and more we keep topping these various national rankings or at least making top-5, top-10 or top-20 on these lists, the more national name recognition we are garnering. It may seem small - but stuff like this is, in my mind, HUGE and yet another WIN for metro RVA!

Which reminds me - tonight I will be partaking of the Friday-night Sabbath dinner at the home of the rabbi who I famously quoted about a month ago as uttering the line that the powers that be in RVA really should be using as a marketing mantra.

"Of course we know of Richmond. Who doesn't?"

[I miss RVA]

@RVABizSenseMikeis reporting in today's RBS that James River Transportation has been sold to New Jersey-based Academy Bus Charter. JRT was founded in 1928 in Buckingham Country as a shuttle service for rural residents to and from Richmond. Kinda sad to see the James River name -- a traditional, classically "Richmond" company -- go away - but here's hoping Academy will do a good job of running the new central-Virginia portion of their overall business.

From today's Richmond BizSense:

https://richmondbizsense.com/2023/10/02/longtime-owners-sell-james-river-transportation-to-n-j-based-competitor/

[KJHburg]

saw this today. 

 

[eandslee]

40 minutes ago, KJHburg said:

saw this today. 

 

Hey, we’re not doing too bad!  There’s actually more news than this, but this is an okay start! 

[plain]

6 hours ago, KJHburg said:

saw this today. 

 

RIC: Not just the U.S., but the entire continent!! Nice!!!

[KJHburg]

How Richmond's apartment market holds up compared to all other metro areas.  Your average rent is basically $700 cheaper a month than the DC area!  6518 apartments under construction in Q3 2023.

You can download and compare to other cities here

U.S. Multifamily MarketBeat | United States | Cushman & Wakefield (cushmanwakefield.com)

[eandslee]

Check out this article from Jennifer Wakefield, CEO of GRP, that talks about what businesses look for that the Richmond region offers.  The part that really got to me, being and airport advocate, was the last paragraph of the Quality of Life section (still frustrating):

https://www.virginiabusiness.com/article/love-at-first-site/?utm_content=267746612&utm_medium=social&utm_source=facebook&hss_channel=fbp-350808887428&mibextid=Zxz2cZ

[I miss RVA]

1 hour ago, eandslee said:

Check out this article from Jennifer Wakefield, CEO of GRP, that talks about what businesses look for that the Richmond region offers.  The part that really got to me, being and airport advocate, was the last paragraph of the Quality of Life section (still frustrating):

https://www.virginiabusiness.com/article/love-at-first-site/?utm_content=267746612&utm_medium=social&utm_source=facebook&hss_channel=fbp-350808887428&mibextid=Zxz2cZ

This graf, no?

One of the region’s few weaknesses site selectors mention in GRP’s annual survey is the limited number of direct flights from Richmond International Airport. “Our location is an advantage but also a disadvantage because airlines look at the largest markets,” Wakefield says, adding that Perry Miller, president and CEO of the Capital Region Airport Commission, “has done a tremendous job of attracting new direct flights,” and the airport now has direct flights to
35 destinations. “That’s needed because we’re being counted out of projects.”

Agreed - very frustrating. That's killing us - being knocked out of consideration for projects because of poor air service (relative to our competitors). 

At least - FINALLY - someone is attempting to address this problem, as in Perry Miller. I've said for a while now that the CRAC FINALLY (yes repeating it in all caps) has the right man for the job. RIC lagging behind other airports and the, until recently, utter dearth of a broad selection of direct flights has been a problem for the airport for DECADES. Not years. DECADES. While air service at airports of our competitors exploded over the last 10, 20, 30 years, RIC was left to sit fallow. Like you, @eandslee, undoubtedly feel, don't get me started on this particular point.

As we've seen (and it's not worth detailing chapter and verse which markets have done what, yada yada), those markets with robust airports with robust service and a robust selection of flights to a robust selection of destinations have had a significant leg up when it comes to attracting business relos. This has been metro RVA's growth Achilles heel over the past 50 years that, IMNSHO, is every bit as significant as Virginia's insipid independent city paradigm and adherence to the Dillon rules. It may be a "chicken and egg" scenario - does it take a fast-growing market to attract the air service to turn a middling airport into a potent engine that drives business relos - or is it more the potent airport that's one of the biggest factors in igniting faster market growth?

We've made more strides in addressing this problem over the last two years than we have in the last 30 or 40 years. Let's see how things continue to move forward under Mr. Miller's leadership as we head into 2024. We're still lightyears behind other markets and will have to fly at warp speed to have any shot of unlapping ourselves. At least - now - FINALLY (yes a third time) we've got both feet on the gas pedal and the afterburners lit.

Edited October 18, 2023 by I miss RVA

[Brent114]

Looks like we may soon get extra attention and inve$tment! 

The Feds named Richmond one of 31 target cities for global technologies development.   The money is coming from the CHIPS program. 
 

https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs

 

They are expecting results within 10 years! 

Edited October 23, 2023 by Brent114

[I miss RVA]

2 hours ago, Brent114 said:

Looks like we may soon get extra attention and inve$tment! 

The Feds named Richmond one of 31 target cities for global technologies development.   The money is coming from the CHIPS program. 
 

https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs

 

They are expecting results within 10 years! 

Here's the Richmond-specific part of the federal announcement:

https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs/2023/Advanced-Pharmaceutical-Manufacturing-Tech-Hub

[ancientcarpenter]

2 hours ago, Brent114 said:

Looks like we may soon get extra attention and inve$tment! 

The Feds named Richmond one of 31 target cities for global technologies development.   The money is coming from the CHIPS program. 
 

https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs

 

They are expecting results within 10 years! 

Wow - this is great. Heard it on NPR today but didn't know RVA was on the list. 

I did hear it's something like $400-500 million so that's quite a bit between 31 cities!

[I miss RVA]

Hourigan & D.C.-based DSC Partners have sold two large warehouses on Commerce Road, midway between downtown and Deepwater Terminal, according to @RVABizSenseMike's reporting in today's RBS. The buyer, Maryland-based Matan Cos., is bullish expanding their footprint in the RVA market.

From Mike's reporting:

Managing director Jamie Minkler said Matan has historically done most of its business in the greater D.C. area but in recent years has increasingly headed south into the Northern Virginia, Richmond and Hampton Roads regions. 

“A lot of the population growth is down that way,” Minkler said.

A big takeaway - RVA's industrial marketplace remains quite robust. From Mike's reporting:

Minkler said while leasing activity is a bit slower than it was a year ago, demand for industrial space between 25,000 and 100,000 square feet is still remarkably strong in Richmond. 

“Everything’s taking a little bit longer, but there’s still a lot of demand,” Minkler said. “In particular, Richmond, out of all the markets we operate in…(demand is) the strongest.”

From today's Richmond BizSense:

https://richmondbizsense.com/2023/10/25/hourigan-sells-two-more-southside-warehouses-for-40m/

 

[Brent114]

I haven’t looked for a link yet but I just heard on VPM that the old Rolls Royce plant is being converted to a glass manufacturer (for doors and windows).  It will generate  650 jobs! 

[HRVA]

On 11/3/2023 at 12:36 PM, Brent114 said:

I haven’t looked for a link yet but I just heard on VPM that the old Rolls Royce plant is being converted to a glass manufacturer (for doors and windows).  It will generate  650 jobs! 

Here’s the governors press release: https://www.governor.virginia.gov/newsroom/news-releases/2023/november/name-1016719-en.html

[I miss RVA]

7 hours ago, HRVA said:

Here’s the governors press release: https://www.governor.virginia.gov/newsroom/news-releases/2023/november/name-1016719-en.html

Great news!! So glad to see this coming to pass. 

[I miss RVA]

@RVABizSenseMikehas reporting in today's RBS that California-based firm LBA Realty has invested $245 million in the purchase of more than 2 million sq ft of warehouse space in Henrico County. While no new construction is involved, I'm always heartened when I see out-of-state investment in the metro area. I might be a mile off base, but nothing proclaims the relevance of the RVA market like big-dollar, out-of-state business investment.

From today's Richmond BizSense:

https://richmondbizsense.com/2023/11/08/california-firm-goes-big-in-henrico-with-245m-worth-of-warehouse-deals/

[Child2021]

Notes: 

Richmond's employment continues to accelerate, growing 4.53% annually in the second quarter. 

Affordability is a major reason for recent growth, compared to similar markets.

The area is seeing strong migration from other within the state and from outside. 

In the second quarter of 2023, 3,400 units were delivered to the market. This marks the highest delivered within a single quarter. 

The number of single family permits has dropped by 16.5% compared to last year. 

Multifamily outlook is lagging, due to the metro's ability to gain a solid footing over the rest of the nation. 

Even with the amount of supply coming online in 2024, the metro will at best track the nation's average. 

Economic situation is more stable, with Richmond continuing to outperform the rest of the nation into the short term, but unfavorable demographics are expected to offset the metro's key assets. Those key assets are: lower cost of living, lower cost of business, which is to weigh of performance (Don't know what this means).