Economy: Regional Growth Drivers Accelerate
Richmond continues to strengthen its position as one of the mid-Atlantic’s most dynamic growth markets, backed by major economic development wins, infrastructure investments, and expanding talent attraction. Richmond International Airport (RIC) was recognized as North America’s most efficient airport serving fewer than 5 million passengers, while LinkedIn ranked the region second as the fastest-growing metro area for jobs and new talent. Pharmaceutical giant Eli Lilly closed on the purchase of 227 acres in Goochland County, marking a major milestone toward construction of its $5 billion manufacturing campus in West Creek Business Park. Colonial Heights approved a $180 million sports and entertainment complex with a mix of hospitality and retail components, and VCU Medical Center was named the top hospital in Virginia by U.S. News & World Report.
Supply And Demand: Balanced Fundamentals
Overall vacancy closed the quarter down 50 basis points (bps) year-over-year (YOY) and remained flat quarter-over-quarter (QOQ) as net absorption numbers continue to keep pace with deliveries. Pipeline activity has accelerated with 5,941 units currently in development, including seven projects that broke ground in the third quarter, the majority of which are located in Chesterfield County. The first residential portion of The Lake is underway near Brandermill as The Breeden Co. started construction on Vida on the Lake, a $72 million project with 258 units planned.Bonaventure broke ground on the 344-unit Attain at Swift Creek, a $93.3 million development adjacent to the Kroger at Iron Bridge Marketplace.
Beyond the active pipeline, developers continue to pursue new project locations throughout the region. After purchasing the land for $8 million from Highwoods Properties, Richmond-based Spy Rock Real Estate announced plans for more than 300 units on an infill site in the Innsbrook area of western Henrico, which will include a mix of apartments and townhomes, a first for the developer in that submarket.
Pricing: Rent Growth Moderates
Effective rents closed the third quarter up 0.6% YOY as growth rates continue to moderate. Year-to-date sales volume has topped $504.5 million, though active slowed significantly in the third quarter after active first half to the year. Capital Square purchased the 255-unit Colony at Centerpointe in Midlothian for $74.6 million after selling the 373-unit complex at 2000 West Creek in Goochland for $115 million to Weinstein Properties. Both trades occurred late in the second quarter of 2026.
