From Cushman & Wakefield | Thalhimer
Economy
Fredericksburg’s economy reported strong improvement for the
year. The area added 5,883 jobs between August 2016 and
August 2017. The region’s unemployment rate ticked up 1 basis
point from last quarter, but at 3.9% was still lower compared to
4.4% recorded third quarter of 2016.
According to the Virginia Employment Commission’s most recent
Quarterly Census of Employment and Wages, the
Fredericksburg region added 77 net businesses in the first
quarter 2017. This is the most recent quarterly data available.
Market Overview
The industrial vacancy rate continued its downward trend
throughout the Fredericksburg region in Q3. The rate fell to
4.7% in Q3, down from 5.3% in Q2 and 8.1% in Q3 2016.
Transactions of note included Precision Doors & Hardware,
which renewed its lease for a 20,992 square foot (sf) space. A
clothing distributor renewed their 7,759-sf space at 11900 Main
Street and Halmen renewed 9,120 sf at 11812 Main Street.
Inflatable Jump Rentals leased 6,000 sf at 1117 Tyler Street in
Fredericksburg while an auto repair shop leased 5,400 sf in the
same building.
Tyler Holdings, LLC purchased a 64,732-sf building for $2 million
at 1015 Tyler Street. KSI, an auto parts supplier located in the
building, and has since expanded their leased space since the
departure of Paragon Gym.
Outlook
The fourth quarter is forecasted to remain positive for the
industrial market as tenants continue to consume available
space, and there remains very little vacancy over all. The biggest
demand is likely to continue for smaller flex-type industrial
properties between 1,000 sf and 3,000 sf. However, there is
softening in the larger-block industrial properties, with bigger
sites around 20,000 sf or more remaining vacant. The addition of
several newly-available properties in that size range will
increase availability.
