Richmond November 2020 – Key Take Aways 

• Industrial sector remains hot with vacancy below 4%; Multi-family also remains hot, but asking rents are flattening – which is usual in the 4^th quarter.
• Retail vacancy is also still quite low, but workouts are starting to happen, which will cause vacancy rates to go up.
• Public sector remains strong with planning underway as budgets are finalized – projects are getting approved.
• Huge concern with the construction market and the lack of skilled labor; larger firms can attract the talent but small and mid-sized firms are challenged.  The big projects (Dominion, Facebook, etc.) are drawing in the top talent which is causing pricing to start going up due to demands on materials.  There is also additional concern about shutting down again due to covid spikes.
• “Choppy” is the word most everyone agreed on for the state of the market.
• Diversification of work across sectors is absolutely the way to go right now as various sectors surge or sputter.
• Lots of money entering the market from outside / new investors looking at Richmond.
• Interest rates are expected to remain low.  Most banks are not looking at new clients right now – only proven track record where there is a relationship.  Refinances, acquisitions, partner buyouts and capital expenditures are all very active.
• PPP forgiveness is underway.
• Construction loans are being made in the healthcare, industrial and any owner occupied deals.
• Pricing on deals is going up based upon demand and the amount of money in the marketplace.