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Merritt Kicks Off Richmond-Area Industrial Expansion

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The development’s first stage is set for completion this summer. The post Merritt Kicks Off Richmond-Area Industrial Expansion appeared first on Commercial Property Executive.

Aerial rendering of the Crescent Business Center in Ashland, Va. — Upon completion, Crescent Business Center will include nine buildings encompassing more than 500,000 square feet. *Rendering courtesy of Cushman & Wakefield | Thalhimer*

Merritt Properties has begun work on Crescent Business Center’s expansion in Ashland, Va. The developer will add 240,000 square feet of light industrial space to the park, bringing the property to more than 500,000 square feet.

The development will come online in two phases, each delivering two facilities. The first stage is set for completion this summer. One of the buildings is already 90 percent preleased to Agiliti, a medical equipment company, and CB Flooring.

Upon completion, the four facilities will feature 20- to 24-foot clear heights, as well as a total of 52 dock doors and four drive-in doors. Truck court depths will range between 108 and 180 feet.

Meritt acquired the Crescent Business Center from Thalhimer Realty Partners in 2022 for $41.3 million. The purchase included five fully leased buildings and 19 acres of additional land, upon which the four new facilities are being built. Following the transaction, Cushman & Wakefield | Thalhimer continued to provide property management and leasing services.

Crescent Business Center’s existing buildings are still fully leased. The tenant roster includes Trane U.S., Electronic Systems, Colonial Pipeline and Sunbelt Rentals, among others.

Located along I-95 at Lakeridge Parkway interchange, the park is less than 15 miles north of downtown Richmond, Va. Hanover County Municipal Airport is within roughly 3 miles.

Metro Richmond’s lackluster light industrial pipeline

Though the Richmond metro area is one of the strongest industrial markets in the Mid-Atlantic region, it is underserved in the shallow-bay industrial category. Only 2 percent of the market’s industrial pipeline accounts for light industrial projects, according to Thalhimer.

Despite the growing demand for this product type, most developers opt to build larger facilities for distribution and logistics companies. PNK Group purchased an 86.6-acre site in Colonial Heights, Va., last November to construct one such large project measuring 846,260 square feet.

The metro also witnessed the completion of 4.3 million square feet of industrial product throughout 2024, a Cushman & Wakefield | Thalhimer report shows. The vacancy rate stood at 3.7 percent in December, a 50 basis points decrease from June.

The post Merritt Kicks Off Richmond-Area Industrial Expansion appeared first on Commercial Property Executive.