Divaris Shaves 93 KSF of Retail Space Off the Richmond Market

By Adrian Maties, Associate Editor

Overall Rental Rate Vs. Overall Vacancy Rates in the Richmond Market

Divaris Real Estate is doing its part to lower the retail vacancy in Greater Richmond. Recently, the Virginia Beach-based company announced the signing of four leases totaling 93,544 square feet of space in the region. DRE’s Richmond office handled the negotiations.

Two of the four leases were for space in the Victorian Square Shopping Center off Hull Street Road. DRE represented the landlord in both transactions. The lessees were discount retailer Gabe’s (Gabriel Brothers) and Planet Fitness, one of the largest and fastest-growing franchisers and operators of fitness centers.

Gabe’s signed the largest of the four leases. The retailer will occupy 57,599 square feet of space in the Greater Richmond shopping center. Planet Fitness committed to occupy 19,412 square feet. Other tenants at Victorian Square include Ashley Furniture, Dollar Tree, Empire Beauty School, Hair Cuttery, and Dr. Mason Dentistry.

Designer Shoe Warehouse also signed a lease for 15,000 square feet of space at the Willow Lawn Shopping Center, on the corner of Broad Street and Willow Lawn Drive. DRE’s Brett McNamee represented the tenant in its negotiations with landlord Federal Realty Investment Trust. Finally, DRE’s Cheryle Toy and Read Goode represented Dunkin’ Donuts in its negotiations to occupy 1,533 square feet of retail space at 900 West Broad St. in Richmond.

According to Cushman & Wakefield | Thalhimer’s latest retail market report, the vacancy rate in the Richmond region was 6 percent at the end of Q2, unchanged from the previous quarter, yet lower than what it was a year ago. With the exception of Q1 2015, the region’s retail vacancy was last this low in Q2 2007. But, at the time, inventory was lower by 6.9 million square feet. Average rents in Greater Richmond have also declined since Q1 2015, reaching $13.96 per square foot, which is still higher than the level recorded in Q2 2014.

Charts courtesy of Cushman & Wakefield | Thalhimer.