Developing Institutional-Quality Industrial Product in Richmond’s Supply-Constrained Airport Submarket
The Challenge
Richmond’s Airport industrial submarket has long been one of the region’s tightest, with limited land availability and strong tenant demand creating a persistent supply gap for Class A product. Finding developable sites at attractive basis points had become increasingly difficult for developers without deep local relationships and off-market access. For those willing and able to source creatively, the opportunity to deliver well-located, institutional-quality industrial product remained compelling.
Our Solutions
Commonwealth leveraged its proprietary network of relationships to source a 56-acre site off-market at a price significantly below prevailing market rates — a critical foundation for a development that could deliver competitive rents while maintaining attractive returns. The resulting project, Airport South Commerce Center, delivered two Class A industrial buildings totaling 403,920 square feet in Q1 2026. The larger building, a 334,800 square foot rear-load facility with 32-foot clear heights, was designed for maximum flexibility — divisible to accommodate one to five users. The second building was designed for either build-to-suit or speculative delivery, broadening the potential tenant universe and reducing lease-up risk across the portfolio.
The Results
The $54.3 million development delivered Class A product into one of Richmond’s most supply-constrained submarkets, with a flexible configuration designed to appeal to the broadest possible range of tenants. Commonwealth’s ability to source the site off-market at a below-market basis created a structural cost advantage that positions the project competitively for lease-up and long-term value creation. With delivery completed in Q1 2026, the asset is actively being positioned for stabilization and an opportunistic future disposition.
