Richmond: Economy/Business/Real Estate

[wrldcoupe4]

Sorry typo / meant to say prelease commitment. 

[eandslee]

4 minutes ago, wrldcoupe4 said:

Sorry typo / meant to say prelease commitment. 

Ah got it.  Makes more sense now, but the premise of my question still remains the same.   If they're still looking for a commitment, that's not good.  If true, that's disappointing, but at the same time, doesn't make much sense given the reports that there have been companies looking for large spaces to lease in Richmond (maybe that was just pre-COVID).

[wrldcoupe4]

The last year turned office leasing on its head. Uncertainty makes long term decisions really tough. This year there will hopefully be more certainty, which will help flush out projects like this and others. Hopefully, more will come to Richmond.  While the smaller wins are great, we need more like CoStar. 

[I miss RVA]

From McKinsey via Arpit Gupta on Twitter:  Richmond top five in workforce growth among mid-sized cities (I take offense to their use of "small" quite frankly!) The Covid effect has the mega cities shedding workers -- and second and third-tier cities picking up workers. This is a huge positive for the Richmond economy and continued population growth.

 

[Icetera]

1 hour ago, I miss RVA said:

From McKinsey via Arpit Gupta on Twitter:  Richmond top five in workforce growth among mid-sized cities (I take offense to their use of "small" quite frankly!) The Covid effect has the mega cities shedding workers -- and second and third-tier cities picking up workers. This is a huge positive for the Richmond economy and continued population growth.

 

I cannot figure out their logic behind the city sizing chart.  In no way is Tucson a large city if VA Beach, Tampa Bay etc are not.  Since they must be going by CSA, then Richmond (only has MSA) is certainly comparably small within the dataset.


 

[I miss RVA]

That said, MSA vs CSA is not an apples-to-apples comparison, no? 

[vdogg]

On 2/19/2021 at 4:15 PM, Icetera said:

I cannot figure out their logic behind the city sizing chart.  In no way is Tucson a large city if VA Beach, Tampa Bay etc are not.  Since they must be going by CSA, then Richmond (only has MSA) is certainly comparably small within the dataset.


 

The bigger the city, the darker the blue. Tucson is d@mn near clear in the size chart so as far as relative size rankings the chart is correct. It puts Jacksonville metro on par with HR size wise which is also correct. As far as the size monikers, when you’re from New York, everything else is small. It’s all relative and should be done by region/state. In Virginia, Richmond and HR are THE big cities outside of NoVa. Nationwide, not so much. That said, I’d say both metros qualify for mid to large, small doesn’t quite cut it.

[Icetera]

21 hours ago, vdogg said:

The bigger the city, the darker the blue. Tucson is d@mn near clear in the size chart so as far as relative size rankings the chart is correct. It puts Jacksonville metro on par with HR size wise which is also correct. As far as the size monikers, when you’re from New York, everything else is small. It’s all relative and should be done by region/state. In Virginia, Richmond and HR are THE big cities outside of NoVa. Nationwide, not so much. That said, I’d say both metros qualify for mid to large, small doesn’t quite cut it.

The second chart is mine as I was trying to work out their logic.  This is the chart in question:

[wrldcoupe4]

CoStar, as reported by CoStar, has taken another 50k SF, this time sublease at Riverfront Plaza. 

[eandslee]

They need their new digs now!!  Thanks for the report. 

[I miss RVA]

2 hours ago, wrldcoupe4 said:

CoStar, as reported by CoStar, has taken another 50k SF, this time sublease at Riverfront Plaza. 

Oh this is really getting interesting. Thanks for the scoop, Coupe! 

Any thoughts on how this might impact what eventually gets built on the CoStar campus?

[Icetera]

39 minutes ago, I miss RVA said:

Oh this is really getting interesting. Thanks for the scoop, Coupe! 

Any thoughts on how this might impact what eventually gets built on the CoStar campus?

Sounds like they are slowly bringing the intended jobs over for which the new building will eventually be needed for.

[rjp212]

SunTrust Center just listed nearly 121.000 sf for lease spread throughout the building.  I know there's been an issue with relocations finding enough space, so hopefully this will help.

https://www.loopnet.com/Listing/919-E-Main-St-Richmond-VA/4104927/

Edited March 10, 2021 by rjp212

[Icetera]

17 hours ago, rjp212 said:

SunTrust Center just listed nearly 121.000 sf for lease spread throughout the building.  I know there's been an issue with relocations finding enough space, so hopefully this will help.

https://www.loopnet.com/Listing/919-E-Main-St-Richmond-VA/4104927/

I believe the biggest complaint has been a lack of larger spaces available.  Even with combining suites, these look a bit tight for a significant relocation (exception: 14th Fl.).


 

[wrldcoupe4]

There are a lot of options in the market for 125k sf right now. 

[eandslee]

4 minutes ago, wrldcoupe4 said:

There are a lot of options in the market for 125k sf right now. 

125k square feet is pretty large...so what is it...is there a need (still) for even larger space?  And if there is a high demand for larger office space (as it is reported in the news), why are there still a lot of office space options for 125k square feet right now?  Is 125k not big enough?

[wrldcoupe4]

There are larger options and more to come. 

[eandslee]

So, I guess we can expect to hear some news of some big moves into these soon-to-be-available office spaces that are in very high demand...according to news we are hearing (in theory). 

[I miss RVA]

2 hours ago, wrldcoupe4 said:

There are a lot of options in the market for 125k sf right now. 

Coupe - all in one place or spread out? I'd think to draw a major corporate re-lo, we'd have to be able to offer a nice chunk in one or (max) two buildings, no?

[wrldcoupe4]

11 hours ago, eandslee said:

So, I guess we can expect to hear some news of some big moves into these soon-to-be-available office spaces that are in very high demand...according to news we are hearing (in theory). 

Near term, I think you’ll see more space being given back as big companies right size as well as some lateral movement within the market. 
 

as to having large chunks of space in 1 place to attract large users, there will be options for that coming, but not that would change the skyline...

Not trying to sound like Nostradamus or something 

Edited March 11, 2021 by wrldcoupe4

[eandslee]

1 hour ago, wrldcoupe4 said:

Near term, I think you’ll see more space being given back as big companies right size as well as some lateral movement within the market. 
 

as to having large chunks of space in 1 place to attract large users, there will be options for that coming, but not that would change the skyline...

Not trying to sound like Nostradamus or something 

Ah!  Got it!  The key there was "not that would change the skyline..." so thanks for that.  I like your predictions though...you're ALMOST like Nostradamus!

[rjp212]

Great to see companies continue to move from the Suburbs to the City.  West Creek Financial is taking about half of the available office space in The Current.

https://richmondbizsense.com/2021/03/11/west-creek-financial-leaving-innsbrook-for-the-current-in-manchester/

[eandslee]

5 minutes ago, rjp212 said:

Great to see companies continue to move from the Suburbs to the City.  West Creek Financial is taking about half of the available office space in The Current.

https://richmondbizsense.com/2021/03/11/west-creek-financial-leaving-innsbrook-for-the-current-in-manchester/

Yeah!  Gotta love seeing this!  Hope they are able to fill the second half of the space very soon!  Congrats to those who helped filled the space!!

Edited March 11, 2021 by eandslee

[I miss RVA]

7 hours ago, wrldcoupe4 said:

Near term, I think you’ll see more space being given back as big companies right size as well as some lateral movement within the market. 
 

as to having large chunks of space in 1 place to attract large users, there will be options for that coming, but not that would change the skyline...

Not trying to sound like Nostradamus or something 

You could be known as ... "Coupestradamus"

[I miss RVA]

5 hours ago, rjp212 said:

Great to see companies continue to move from the Suburbs to the City.  West Creek Financial is taking about half of the available office space in The Current.

https://richmondbizsense.com/2021/03/11/west-creek-financial-leaving-innsbrook-for-the-current-in-manchester/

This is HUGE for Manchester -- and for the city. And that it's getting some ink is important - that will make a nice splash in the real estate community - and maybe the trend of "suburb-to-the-city" will take hold and become an on-going reality at least for a while.