The local market was not left out of the action.
Sales volume in the Richmond region for retail and office properties in 2021 were at all-time highs, according to data from commercial real estate brokerage Cushman & Wakefield | Thalhimer. Retail property sales accounted for about $594 million, while sales of office properties hit a whopping $853 million
Other high-water marks were established in the market. Multifamily rental growth hit an all-time high of 14.7%, according to Apartment List (the Thalhimer report showed rental growth of 11.3%), and also indicated rents have grown 18.9% since the pandemic began.
Not to be outdone, the industrial market had a record year of leasing with about 10 million square feet leased during the year — more than double the historical averages.
At the end of December 2021, 9.9 million square feet of industrial space was underway, according to brokerage Porter Realty Co. Inc. The previous high under construction was 3.5 million square feet.
Interestingly, the report indicated 60% of the building space under construction is preleased.
All the 2021 activity is good news for commercial real estate participants as well as the Richmond metro area, but is it sustainable with higher rates expected in 2022?