CBRE

FIGURES|RICHMONDOFFICE|Q42025

LeasingActivityRemainsActive,Ledby

HealthcareandBusinessServicesOccupiers

10.7%

OverallVacancyRate

Note:Arrowsindicatechangefrompreviousquarter.

152,133

SFNetAbsorption

0

SFDelivered

$21.64

AverageFSGAskingRate

TheRichmondofficemarketexperiencedasixthconsecutivequarterofpositivenetabsorption,recordinganoccupancygainof152,000sq.ft.Notablemove-insincludeCostaroccupyingan

additional22,970sq.ft.atRiverfrontPlazainRichmond’sdowntown.Therealestateinformationandanalyticscompanyhasbeenleasingswingspaceintheofficetowerwhileconstruction

continuesonitsnearbycorporatecampusat401S5thStreet.AlsotakingoccupancythisquarterwasCSCLeasingCompany,whichmovedinto33,431sq.ft.at6641WBroadStreetinthe

Glenside/BroadStreetsubmarket.

Asaresult,totalvacancyfellby50basispoints(bps),reaching10.7%forthequarter.

Simultaneously,theaverageaskingrateincreasedslightlyto$21.64persq.ft.perannumonafull-servicebasis.

Leasingactivityremainedactive,with60tenantssigningleasestotaling347,000sq.ft.Ofthesetransactions,tenwereover10,000sq.ft.and77%wererelocations.

FIGURE1:HistoricalSupply&DemandDynamics

SF(000s)

1,200

1,000

800

600

400

200

0

(200)

(400)

(600)

20152016201720182019202020212022202320242025

Deliveries(L)NetAbsorption(L)OverallVacancy

Source:CBRE

14

12

10

8

6

4

2

0

1CBRERESEARCH?2025CBRE,INC.

FIGURES|RICHMONDOFFICE|Q42025

2CBRERESEARCH?2025CBRE,INC.

FIGURE2:SelectNotableQ42025LeaseTransactions

Healthcare

Healthcaretenantsrecordedstrongactivitythis

quarter.ThelargestdealofthequarterwasVirginiaCardiovascularSpecialists’20,531sq.ft.leaseat7515RightFlankRoadintheMechanicsvillesubmarket.

Theycurrentlyhaveeightotherlocationsinthe

Richmondareawherepatientscanvisitfor

comprehensiveheartcare.Alsoleasingspacethis

quarterwasStarCityBehavioralHealth,whichsignedfor13,289sq.ft.at1610ForestAvenueintheGlenside/BroadStreetsubmarket.

BusinessServices

Businessservicesoccupiershavealsobeenactivethisquarter,contributing16%toannualgrossleasing

activity.Mostnotablewasan18,110sq.ft.leaseby

CBIZat4435WaterfrontDrive.Thiswillbethe

accountingandtaxadvisoryprovider’sfirstlocationintheRichmondarea.Ernst&Young(EY),alsoa

providerofaccountingandtax-relatedservices,

renewedits15,779sq.ft.leaseat2100ECaryStreet.

LeasingSnapshot

Tenant

Industry

Address

Submarket

QuadrantSF

LeaseType

VirginiaCardiovascularSpecialists

Healthcare

7515RightFlankRd

Mechanicsville

NE

20,531

NewLease

ConfidentialTenant

Other

4144InnslakeDr

Innsbrook

NW

19,355

NewLease

CBIZAccounting,Tax&AdvisoryServices

BusinessServices

4435WaterfrontDr

Innsbrook

NW

18,110

NewLease

UndisclosedTenant

Other

808MoorefieldParkDr

MidlothianCorridor

SW

17,261

NewLease

UndisclosedTenant

Other

4860CoxRd

Innsbrook

NW

16,416

NewLease

Ernst&Young(EY)

BusinessServices

2100ECarySt

ShockhoeBottom

NW

15,779

Renewal

StarCityBehavioralHealth

Healthcare

1610ForestAve

Glenside/BroadSt

NW

13,289

NewLease

FIGURE3:2025GrossLeasingbySector(SharebySF)

$22.00

19%

31%

Legal

5%

12%

Government

$20.00

BusinessServices

FinancialServices

17%16%

Education

Other

$21.00

$19.00

FIGURE4:HistoricalRentGrowthSource:CBRE

$18.00

20182019202020212022202320242025

Source:CBRESource:CBRE

FIGURES|RICHMONDOFFICE|Q42025

3CBRERESEARCH?2025CBRE,INC.

EconomicOutlook

EducationandHealthServicesLeisureandHospitality

Mining,Logging,andConstruction

Trade,Transportation,andUtilities TotalNonfarm ManufacturingFinancialActivities OtherServicesGovernment

ProfessionalandBusinessServicesInformation

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI’ssizablecontributiontogrowthinrecentquarters.Someindicatorsofbusinessactivity,suchascapitalgoodsorders,are

improving,andstrengtheningcreditmarketsarehelpingtousherrealestateintoanewcycle.

Thepicturegetsmoremelancholywhenlookingat

households.Consumerconfidenceremainsweak,with

spendingreportedlydrivenbyasmallersegmentofaffluenthouseholds.Thismosaicofdatasuggeststhatannual

averageGDPgrowthwillbesteadyin2026,at2%,buta

touchsofterthanin2025.Akeycatalystisasofterlabor

market,ascompaniesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.Aconsequenceofthis

outlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

FIGURE5:EmploymentGrowthbyIndustry,12-MonthPercentChange

Source:BLS

-8%-6%-4%-2%0%2%4%6%8%

FIGURE6:UnemploymentRate

9%8%7%6%5%4%3%2%1%0%

RichmondUnitedStates

Source:BLS

FIGURE7:ConsumerPriceIndex,12-MonthPercentChange

12%10%8%6%4%2%0%-2%

SouthRegionUnitedStates

Source:BLS

FIGURES|RICHMONDOFFICE|Q42025

FIGURE8:KeyMarketStatistics

2025NetAbsorption(SF)

486,984

DirectOverall

VacancyRateVacancy

(%)Rate(%)

Under

Construction

(SF)

Q42025NetAbsorption(SF)

243,023

GrossAskingRent($/SF)

22.25

Inventory(SF)

NumberofBuildings

25,827,85710.411.1

NorthwestQuadrant

-

483

5,647,280

13.6

14.1

74,947

129,318

23.74

CBD

-

38

Glenside/BroadSt633,601,37913.215.0133,101183,45522.33-

Innsbrook995,956,76910.711.646,601(36,831)22.80-

46

21.65

3.2

5.4

(1,225)

32,320

NearWestEnd

-

1,353,797

13

7.8

8.5

0

(14,128)

23.32

NorthBroad

-

1,387,508

33

4.6

4.6

6,059

2,159

18.79

ParhamEast

-

1,716,419

WestEnd822,794,4594.74.8(21,900)95,17820.36-

SouthwestQuadrant213

7,458,296

10.0

10.4

(80,300)

27,640

20.53

-

MidlothianCorridor

71

3,430,556

16.8

17.4

(68,428)

43,926

20.64

-

NortheastQuadrant

62

1,411,992

5.1

5.4

(9,966)

(12,445)

19.65

-

SoutheastQuadrant

33

1,157,261

10.5

10.5

(624)

2,714

18.84

-

Overall

791

35,855,406

10.1

10.7

152,133

504,893

21.64

-

Source:CBREChartincludesselectkeysubmarketsintheNorthwestandSouthwestQuadrants.

CBREMid-AtlanticResearchbeganusingaproprietarydatabaseforofficepropertiesinmid-2024.BeginningQ32024,statisticsandtrendsreportedinpreviousreportslikelychangedduetoourreviseddatamethodologies.Thein