Abstract
The Richmond, Virginia industrial market demonstrated continued resilience through the first half of 2026, outperforming the national market where overall vacancy climbed to 7%, more than double Richmond’s rate, as excess post-COVID speculative supply weighed on many peer markets like Charlotte and Savannah.
As the Greater Richmond industrial market moves into the second half of 2026, the core fundamentals that have defined recent performance remain firmly in place. Constrained supply, disciplined development activity, and broad-based tenant demand continue to support market stability. While national headwinds such as trade policy volatility and high construction costs create some uncertainty, Richmond’s diversified tenant base and relative affordability compared to peer markets position it favorably on a regional and national scale.
Looking ahead, rental rate growth is expected to continue, but at a more moderate pace as affordability pressures begin to emerge, particularly among smaller local users. The ongoing shortage of functional small and mid-bay product is likely to sustain upward pressure on sub-50,000 square foot assets through year-end, while big-box landlords may experience slightly increased tenant leverage as new deliveries come online.
