RICHMOND—Suburban office properties in the Richmond area appear to be going against a larger national trend in which investors focus on core city product, while avoiding offices in the outlying suburbs.
That was not the case for the Richmond suburbs last year, according to JLL, which reports that these markets reached over $127 million in investment sales. The Northwest quadrant, particularly the Innsbrook submarket, has produced the largest number of transactions due to several large portfolio sales.
In fact, all notable office dispositions recently have been in the suburbs, JLL SVP Jimmy Appich, tells GlobeSt.com. The reasons include greater investor and asset diversity in the suburbs and single digit vacancy among the Class A buildings. Also, supply was seriously constrained over the past seven years with no new Class A buildings developed at all, he says.
All of the aforementioned have made the local suburbs highly attractive to both local and national investors. Pricing is also attractive compared to tier 1 markets and most of the dispositions have been portfolios, giving investors a cost-effective way to enter into or expand their presence in the market.
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