Delta Citation Launches Fully Pre-Leased Industrial Development in Central Virginia
Commercial real estate developer Delta Citation has officially commenced construction on a new ±43,000-square-foot, ground-up, design-build industrial warehouse at Hanover Air Park in Ashland. The project marks another strategic investment in Central Virginia’s high-performing industrial sector and reflects sustained tenant demand for well-located, modern logistics and distribution facilities.
The facility is 100% pre-leased to a single dedicated user before the start of vertical construction — a notable achievement in today’s competitive market. Full pre-leasing before groundbreaking underscores both the quality of the development and the strength of the regional industrial real estate environment. As companies continue to prioritize efficiency, proximity to major transportation corridors, and high-performance building specifications, projects like this remain in high demand across Hanover County and the broader Richmond region.
Richmond Industrial Market Remains Exceptionally Tight
The industrial real estate market in the Richmond area continues to demonstrate remarkable resilience and strength. According to recent research from Cushman & Wakefield, industrial vacancy in the Richmond market closed 2025 at historically low levels — below 4% — even as new supply was gradually introduced. Such tight vacancy conditions position the region among the most competitive industrial markets along the East Coast.
Despite modest development activity adding new square footage to the market, tenant demand has remained robust. Throughout 2025, leasing velocity across the region generated substantial positive net absorption, with hundreds of thousands of square feet absorbed over the course of the year. This continued absorption highlights the sustained appetite for modern industrial facilities that meet evolving operational requirements, particularly those serving logistics, distribution, light manufacturing, and supply chain functions.
Market fundamentals remain strong, supported by population growth, business expansion, and the Richmond region’s strategic geographic positioning. The continued compression of vacancy rates reflects a limited inventory of move-in-ready industrial space, making newly delivered or under-construction projects especially attractive to tenants seeking high-quality facilities.
Strategic Location Along the I-95 Corridor
The new industrial facility benefits from its prime positioning within Hanover Air Park, located just off Interstate 95. This strategic placement provides immediate access to one of the East Coast’s most critical transportation corridors. Delta Interstate 95 connects Richmond to major metropolitan markets, including Northern Virginia, Washington, D.C., and the broader Mid-Atlantic region, offering logistical advantages for companies requiring efficient distribution routes.
The location enables streamlined regional and interstate shipping operations, making it particularly appealing for tenants operating in time-sensitive distribution environments. Businesses positioned along this corridor gain proximity to key consumer markets while maintaining cost efficiencies associated with Central Virginia’s competitive operating environment.
Hanover County has increasingly emerged as a preferred destination for industrial development due to its accessible infrastructure, supportive business climate, and available land for strategic growth. The development of this facility further strengthens the county’s reputation as a hub for high-performance industrial space.
Facility Designed for Modern Operational Needs
The ±43,000-square-foot warehouse has been thoughtfully designed to address the functional and operational demands of today’s industrial users. The project follows a design-build model, ensuring efficiency in both construction delivery and tenant-specific customization.
The building will feature a flexible interior layout that integrates contemporary office space with expansive warehouse operations under one roof. Delta This configuration supports administrative functions while maximizing warehouse efficiency, allowing for seamless coordination between management and operational teams.
A five-bay loading dock system has been incorporated into the facility’s design to accommodate high-volume shipping and receiving requirements. Multiple dock positions will enable efficient logistics flow, reduce turnaround times, and support scalable distribution operations as tenant needs evolve.
Operational continuity has also been prioritized. The facility will include a fully integrated backup generator system designed to maintain critical functions during power interruptions. In industries where downtime can result in significant financial and logistical disruptions, this feature provides valuable reliability and resilience.
To further enhance interior working conditions and energy performance, industrial-sized high-volume fans will be installed throughout the warehouse space. These systems improve airflow circulation, contribute to occupant comfort, and support energy efficiency by optimizing temperature distribution across large open areas.
Collectively, these design elements position the facility as a modern, high-functioning industrial environment aligned with contemporary logistics and operational standards.
Experienced Regional Contractor Leading Construction
Haley Builders, Inc., based in Ashland, Virginia, has been selected as the project’s general contractor. With more than three decades of experience in the construction industry, Haley Builders brings a strong track record of delivering industrial, commercial, and public sector projects throughout the region.
The firm has completed projects for federal, state, and local clients, earning a reputation for quality craftsmanship, adherence to timelines, and comprehensive project management capabilities. Their involvement ensures that the development will be executed efficiently and in alignment with the high standards expected for modern industrial facilities.
The collaboration between Delta Citation and Haley Builders reflects a shared commitment to quality, reliability, and strategic development execution.
Leadership Perspective on Market Strength
Tony Hepler, Strategy Director at Delta Citation, emphasized the significance of the groundbreaking within the context of broader regional trends.
“This groundbreaking reflects robust tenant demand and the strength of the industrial real estate market across Central Virginia,” Hepler stated. “Securing full pre-leasing before construction demonstrates the continued appetite for well-located, high-functioning industrial space along the I-95 corridor.”
His comments highlight a key dynamic shaping the market: tenants are increasingly proactive in securing high-quality space before completion, particularly in regions where vacancy rates remain historically low. Pre-leasing activity reduces development risk and signals confidence in long-term industrial demand fundamentals.
Supporting Regional Economic Growth
Beyond meeting the immediate needs of its tenant, the project contributes to ongoing economic development within Hanover County and the greater Richmond region. Industrial facilities play a crucial role in supporting supply chains, job creation, and regional competitiveness.
As logistics, manufacturing, and distribution requirements continue to expand, strategically located industrial developments help ensure that businesses can operate efficiently and remain connected to key markets. The addition of this fully pre-leased facility strengthens the region’s inventory of modern industrial space and supports broader economic growth initiatives.
The project also reflects continued investor confidence in Central Virginia’s industrial real estate fundamentals. Strong absorption rates, limited vacancy, and access to major transportation infrastructure collectively create a favorable environment for sustained development activity.
Construction Now Underway
With construction officially underway, the ±43,000-square-foot facility is poised to become another important addition to Hanover Air Park’s growing industrial footprint. The project reinforces Delta Citation’s commitment to delivering strategic, well-located industrial developments tailored to evolving tenant needs.
As market conditions continue to favor high-quality industrial space along the East Coast, developments like this illustrate how proactive planning, strong partnerships, and strategic site selection can align to meet demand in competitive markets. Upon completion, the facility will stand as a testament to the continued strength of Central Virginia’s industrial sector and its role within the broader Mid-Atlantic logistics landscape.
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