Richmond Industrial Figures Q1 2026

The market shifted into a softer occupancy phase by Q1 2026 even as pricing remained resilient. Vacancy rose by 1.2 percentage points to 5.6% and was up 2.2 percentage points compared to Q1 2025, while availability climbed to 6.2%. Net absorption remained steady, moving from negative 222,000 sq. ft. in Q4 2025 to negative 207,000 sq. ft., but this still marked a sharp reversal from the 629,000 sq. ft. of positive absorption posted in Q1 2025. Despite weaker demand, the average asking rate rose to $8.65, up 5.1% quarter‑over‑quarter and 1.8% year‑over‑year from $8.38.

Supply dynamics were a key component of this shift in vacancy. Space under construction nearly quadrupled over the year, from 3.0 million sq. ft. in Q1 2025 to 11.5 million sq. ft. in Q1 2026, and quarterly deliveries increased to 1.4 million sq. ft. from just 104,000 sq. ft. in Q4 2025, expanding available inventory in the market.