Richmond Commercial Office Space for Rent

Q3 2026

Q3 2026 Richmond Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Richmond industrial absorbed 668,000 SF in Q3 2026 as leasing rose 159% year over year and asking rents climbed 11.6%, with 12.2 million SF under construction. Retail vacancy stayed low at 3.4%, while office vacancy rose to 12.3% after large downtown move-outs. On TenantBase, office demand more than quintupled to 54.8% of Richmond tenant searches, up from 10.0% in Q2.

Sector Snapshot

  • Office: Softer quarter. Vacancy rose 70 basis points to 12.3%, while rents grew 2.9% year over year.
  • Industrial: Strong leasing. Vacancy fell to 5.2%, with 2.6 million SF leased in Q3.
  • Retail: Tight. Vacancy was 3.4%, and Short Pump was at 1.2%.
  • Multifamily: Steady. Vacancy was 9.0%, with effective rent of $1,588.

Richmond Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Richmond region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 54.8%
  • Retail/Storefront: 42.9%
  • Warehouse/Industrial: 2.4%

Three-Quarter Trend

  • Office: 11.6% in Q1, 10.0% in Q2, 54.8% in Q3
  • Retail/Storefront: 70.3% in Q1, 71.4% in Q2, 42.9% in Q3
  • Warehouse/Industrial: 18.1% in Q1, 20.7% in Q2, 2.4% in Q3

Key Takeaways

  • Office became the top category, rising from 10.0% of searches in Q2 to 54.8% in Q3.
  • Office tenants want flexibility. 56.5% of office searches sought terms under one year, for spaces of 600 to 1,300 SF.
  • Retail tenants are committing long. 75.0% of retail searches sought terms of 3 years or longer.
  • Retail requirements are mid-size. 3 to 5 year and 5+ year retail searches both averaged 2,500 to 5,000 SF.

Office Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 12.3%, up 70 basis points quarter over quarter, with Class A at 14.9%
  • Net absorption: negative 281,000 SF in Q3 and negative 428,000 SF year to date
  • Direct asking rent: $22.18/SF full service, up 2.9% year over year, with Class A at $24.28/SF
  • Construction: 293,000 SF underway, with no Q3 deliveries
  • Submarkets: the CBD at 16.7% and the Far West End at 23.5%, while Innsbrook captured 26.2% of Q3 leasing

TenantBase Office Activity

Demand share: 54.8% of Richmond tenant searches, up from 10.0% in Q2 and 11.6% in Q1.

Lease terms:

  • Less than 1 year: 56.5%
  • 2 to 3 years: 30.4%
  • 3 to 5 years: 8.7%
  • 5+ years: 4.3%

Space requirements by term:

  • Less than 1 year: 600 to 1,300 SF
  • 2 to 3 years: 1,625 to 3,375 SF
  • 3 to 5 years: 1,500 to 3,000 SF

TenantBase data vs. the market: Richmond office tenants on TenantBase are seeking small spaces on short terms. Rising CBD vacancy gives these tenants more options downtown, while Innsbrook remains the most active submarket for leasing.

Industrial & Warehouse Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 5.2%, down 20 basis points quarter over quarter
  • Net absorption: 668,000 SF in Q3 and 682,000 SF year to date
  • Asking rent: $9.02/SF NNN, up 11.6% year over year
  • Leasing: 2.6 million SF, up 159% year over year
  • Construction: 12.2 million SF underway across 25 properties
  • Major lease: ID Logistics, 582,000 SF at I-895 Logistics Center

TenantBase Warehouse Activity

Demand share: 2.4% of Richmond tenant searches, down from 20.7% in Q2 and 18.1% in Q1.

TenantBase data vs. the market: Warehouse searches on TenantBase were minimal in Q3, while large logistics users drove market leasing. With rents up 11.6% in a year, small industrial tenants should budget for higher costs at renewal.

Retail Market

Key Metrics (Q3 2026, Cushman & Wakefield | Thalhimer)

  • Vacancy: 3.4%, down 10 basis points quarter over quarter
  • Asking rent: $19.57/SF NNN
  • Construction: 379,455 SF underway, 74.3% preleased
  • Submarkets: Short Pump at 1.2% and $34.00/SF, Mechanicsville at 3.4%, and Midlothian West at 4.9%
  • New stores: Kroger plans 120,000 SF in Hanover, and Publix plans 50,000 SF in Chesterfield

TenantBase Retail Activity

Demand share: 42.9% of Richmond tenant searches, down from 71.4% in Q2 and 70.3% in Q1.

Lease terms:

  • 3 to 5 years: 37.5%
  • 5+ years: 37.5%
  • 2 to 3 years: 18.8%
  • Less than 1 year: 6.3%

Space requirements: 3 to 5 year and 5+ year searches averaged 2,500 to 5,000 SF.

TenantBase data vs. the market: Richmond retail tenants on TenantBase are planning long commitments for mid-size space. With vacancy at 3.4% and new construction mostly preleased, tenants should start searches early, especially in Short Pump.

Development & Economic Drivers

  • Diamond District: CarMax Park opened April 7, 2026, and phase 1 includes a 98,000 SF office building and 276 apartments (Richmond BizSense)
  • Lego: a $1.5 billion-plus, 1.7 million SF factory in Chesterfield with 1,700-plus jobs, opening in 2027 (Lego)

Multifamily Market

Richmond apartment vacancy was 9.0% in Q2 2026, with effective rent of $1,588, up 0.6% year over year, according to Cushman & Wakefield. About 4,410 units were under construction.

Q4 2026 Outlook

  • Office: Expect more sublease and direct options downtown as vacancy rises.
  • Industrial: Expect rent growth to continue as large projects lease up.
  • Retail: Expect vacancy to stay low, with most new construction preleased.
  • Multifamily: Expect steady occupancy as the construction pipeline shrinks.

Frequently Asked Questions

What type of commercial space are Richmond tenants searching for in 2026?

In Q3 2026, 54.8% of Richmond tenant searches on TenantBase were for office space, 42.9% for retail space, and 2.4% for warehouse space.

What is the office vacancy rate in Richmond?

Richmond office vacancy was 12.3% in Q3 2026, with the CBD at 16.7%, according to CBRE.

What is the retail vacancy rate in Richmond?

Richmond retail vacancy was 3.4% in Q3 2026, with Short Pump at 1.2%, according to Cushman & Wakefield | Thalhimer.

How can I find commercial space in Richmond at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Richmond region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Richmond, July 1 to September 30, 2026
  2. TenantBase, Richmond Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Richmond Commercial Real Estate Market Report, Q1 2026
  4. CBRE, Richmond Office Figures, Q3 2026
  5. CBRE, Richmond Industrial Figures, Q3 2026
  6. Cushman & Wakefield | Thalhimer, Richmond Retail MarketBeat, Q3 2026
  7. Cushman & Wakefield, Richmond Multifamily MarketBeat, Q2 2026
  8. Richmond BizSense, Diamond District First Building, May 2026
  9. Lego, Virginia Factory Construction Milestone, October 2025

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.