Richmond Office Figures Q1 2026

The market began to soften in Q1 2026 with net absorption turning negative. Occupancy loss reached 99,000 sq. ft. due to significant move-outs outpacing move-ins during the quarter. This marks a shift in demand strength after 2025 recorded a cumulative 364,000 sq. ft. of positive absorption. Vacancy rose to 11.3%, up 0.4 percentage points from Q4 2025, but still 0.9 percentage points lower year-over-year.

As occupancy improved during 2025, asking rents reset higher. The average asking rate increased from $21.68 in Q1 2025 to $21.85 in Q1 2026, a 0.8% increase year-over-year. Construction activity also increased, with two projects under construction totaling 93,000 sq. ft., both medical office properties. Of this square footage, 52.3% remains available for pre-lease.