Developing a Best-in-Class Infill Industrial Asset in a Supply-Constrained Market
The Challenge
Shallow-bay industrial product in infill Richmond locations has become increasingly difficult to find as land constraints and rising construction costs have made new development challenging to pencil. Commonwealth identified a rare opportunity to develop a modern, functional facility in a hyper-infill location that could command above-market rents from tenants who value proximity, accessibility, and quality product and where limited new supply would support strong long-term performance.
Our Solutions
Commonwealth developed Dominion Commerce Center from the ground up, delivering a 70,000 square foot shallow-bay industrial facility purpose-built for the modern tenant. The asset was designed with the specifications today’s tenants demand: 24-foot clear heights, LED lighting, and 22 dock doors with ample parking. The leasing strategy was equally disciplined: Commonwealth pre-leased 100% of the building to three diverse tenants prior to completion, achieving a weighted average lease term of 9.5 years at above-market rents and eliminating stabilization risk entirely.
The Results
Completed in 2025, Dominion Commerce Center delivered exactly what the investment thesis projected. Full occupancy at above-market rents with a diversified tenant base and nearly a decade of term provides Commonwealth with a stable, high-quality cash flow profile. The development stands as a demonstration of Commonwealth’s ability to identify supply gaps, execute ground-up development, and deliver institutional-quality product in markets where barriers to entry protect long-term value.
