Innsbrook real estate panel addresses growing residential, commercial opportunities

The Innsbrook Foundation hosted a panel of six Virginia real estate leaders in a table talk about changes in residential and commercial real estate markets as the economy emerges from the COVID-19 pandemic.

The panelists began this month's gathering with a discussion of recent trends in the local housing market, particularly in the Richmond region.

Panelist Nate Smith, vice president and mortgage sales manager at TowneBank Mortgage, said an existing seller’s market had been exacerbated by the COVID-19 pandemic – and that the trend may last for at least the next few months, including in areas such as the West End, depending upon the overall state of the economy.

Home valuations improved as people renovated their homes during the pandemic, said panelist Dan Kern, business development and training manager for Virginia Housing.

Combined with low interest rates resulting from federal policy aimed at combating the economic impact of the pandemic, the focus on buying homes increased even though inventory had not.

This demand has influenced the residential and commercial side of real estate in Richmond, panelists added.

The Richmond region is one of the top 25 places nationally to which people are relocating, said Innsbrook Foundation Executive Director Yvonne Mastromano.

However, the region is facing a similar lack of inventory, particularly in single-family residential homes, that has affected the market, multiple panelists noted.

Panelist Matt Sugg, regional director at PRG Real Estate, said a ripple effect had been created by the demand for single-family homes with a limited supply. The traffic for multifamily units is benefiting as a result, he said.

People buying and leasing homes are coming from high density cities in New York, Texas and Florida, Sugg said, especially as an easing of COVID-19 restrictions has made moving more comfortable.

Sugg estimated that 10% to 15% of this group was new to the real estate market, compared to people relocating.

Virginia still 'a wonderful place to do business'

Metro Richmond’s commercial real estate market also may benefit from increased movement to the region – including among talent companies – Highwoods Properties Richmond Division Vice President Jane DuFrane said.

The affordability and lifestyle of Richmond could also shift in ways that new and old Virginians have not experienced in more than a year with Gov. Ralph Northam’s announcement that COVID-19 mitigation measures will end on May 28.

Panelist Brian Witthoefft, managing director of leasing and marketing at Lingerfelt CommonWealth Partners, said the local market had created an “it factor” for itself.

“Virginia continues to be a wonderful place to do business,” he said. “It just does. I applaud Virginia for continuing to be approachable and attractive.”

Witthoefft said the quality of life in the Richmond region was getting attention and compared its population growth to that seen a decade ago in Raleigh, North Carolina.

“Richmond has now made itself a growth city, which I think is awesome,” he said.

The long-term effects of this growth may vary as the presently inflated seller's market will change, multiple panelists noted. The immediate potential for Richmond suburbs such as Innsbrook is exciting, they said.

The panel, which attracted more than 30 participants, was sponsored by Keiter, an independent accounting and consulting firm headquartered in Glen Allen. The Innsbrook Foundation will host its next table talk on June 17.