Some parts of Virginia have experienced a slowing down of commercial real estate, but Richmond is still experiencing growth. As an experienced commercial realtor in Richmond, Virginia, I’ve heard a wide range of frustrations from clients looking for retail space in the area. Here are six common complaints I hear quite often:
- Limited availability of desirable, high-traffic locations: Many buyers are frustrated by the lack of prime retail spaces available in Richmond’s most popular shopping districts like Carytown, Short Pump, and along Broad Street in the city’s core. These high-visibility, high-foot-traffic areas are in high demand but have low vacancy rates.
- Outdated spaces requiring major renovations: Much of the available retail inventory, particularly in some of the older commercial corridors, consists of dated spaces that need significant renovations or tenant improvements to modernize and suit their branding/concept. The cost of major overhauls is adding up in a higher interest environment.
- Lack of parking and accessibility: Parking is a perennial issue, with many buyers frustrated by the parking constraints for certain properties, whether it’s a shortage of spaces, inconvenient locations, or challenging access points for customers. This impacts the perceived desirability of the space.
- Issues with zoning and permitted uses: Zoning restrictions in some areas of Richmond can limit the types of retail businesses allowed, creating issues for certain buyers whose concepts may not be permitted in their desired locations.
- Need for bigger spaces that are hard to find: For retailers looking for larger footprints of 10,000+ square feet, the options tend to be much more limited, especially if they want single-story, ground-floor spaces in dense areas instead of multi-level properties.
- Outdated spaces requiring major renovations: A lot of the available retail inventory, particularly in some of the older commercial corridors, consists of dated spaces that need significant renovations or tenant improvements to modernize and suit their branding/concept. The cost and hassle of major overhauls is a turnoff.
- Scarcity of supply has pushed rental prices up – so there’s a squeeze felt by small businesses or startups looking to lease, the constant increase in rental rates for retail storefronts can make finding an affordable space quite difficult. Prime locations command premium rates that may be out of their budget.
Navigating these common frustrations and finding the right balance of location, space, pricing, and other factors within the Richmond retail landscape can be challenging. As a local expert, a big part of my role is advising clients on ways to overcome these hurdles. If you are looking at retail space in Richmond connect with me at Sperity Ventures to find the perfect spot for your business to grow.
