Richmond’s medical office market contains just 5.4 MSF throughout the region, and fundamentals remain stable given the sustained demand and limited development pipeline. Speculative construction has been limited with inventory growth hitting 10.1% since 2020. Nearing the mid-year mark, overall sector vacancy is 8.6%, down 70 basis points (bps) from the end of 2024 and on the upper end of historic averages. Quoted base rates are hovering in the $25 range on a per-square-foot basis with additional upward pricing pressure for new construction.

Our Q2 medical office report provides detailed analysis of vacancy trends by submarket, lease transaction activity, and emerging market opportunities for healthcare providers and investors seeking to understand Richmond’s evolving medical office landscape.s.