Merritt Properties Breaks Ground on 140,000-SF Light Industrial Project in Stafford County, Virginia

Merritt Properties has broken ground on Phase I of Austin Ridge Business Park in Stafford County, Virginia, launching a two-building, 140,000-square-foot Class A light industrial development along the I-95 corridor between Washington, D.C., and Richmond. Cushman & Wakefield is serving as the exclusive leasing representative for the project.

The Phase I buildings are part of a planned five-building campus on Austin Ridge Drive in Stafford. Earlier project materials described the full build-out as totaling approximately 390,075 square feet across five single-story buildings, making the current groundbreaking the first segment of a larger long-planned development.

Small-Bay Focus Targets Underserved Tenant Segment

The two Phase I buildings will offer flexible suite configurations ranging from 3,600 to 99,000 square feet, with clear heights of 20 to 32 feet, rear-loading docks, drive-in doors and truck courts spanning 120 to 180 feet. Merritt Properties' in-house design and construction teams can customize spaces to meet individual tenant requirements.

The project is specifically designed to serve businesses in the 8,000- to 25,000-square-foot range — a segment that Merritt and its leasing team say has been largely overlooked by the current development pipeline, which has been concentrated on bulk facilities exceeding 200,000 square feet. Target users include advanced manufacturing, warehousing and distribution, construction, government contracting, home improvement trades and technology services companies.

Wilson Greenlaw, CCIM, SIOR, exclusive leasing representative with Cushman & Wakefield | Thalhimer, said the gap in small-bay supply is driving the project's rationale. "Demand for small-bay industrial space in Stafford has far outpaced supply, with vacancy at just 6.2% and nearly every new project targeting bulk users over 200,000 square feet. Austin Ridge is the first development to bring true Class A, small-bay product to this market — right where local and regional businesses need it most," Greenlaw said.

Fredericksburg Market Tightens as Stafford Grows

According to Cushman & Wakefield's Q2 2026 MarketBeat report, the Fredericksburg industrial vacancy rate fell to 6.2%, down from 7.2% a year earlier. Cushman & Wakefield's Q1 2026 data showed a vacancy rate of 3.6% in the Fredericksburg market, with 459,779 square feet of year-to-date net absorption and overall asking rents of approximately $10.56 per square foot.

The broader U.S. industrial market has also shown signs of stabilization. National industrial vacancy fell to 6.9% in Q2 2026 — below 7% for the first time in the current cycle — with leasing activity reaching its highest level since mid-2022. National asking rents stood at approximately $10.20 per square foot in Q1 2026, reflecting year-over-year rent growth of 2.1%.

Stafford County's population and business growth have contributed to rising industrial demand in the submarket. Since 2020, the county has added nearly 14,000 residents and seen approximately an 18% increase in private-sector businesses. The county also recorded 1,671 new jobs between July 2025 and June 2026, according to the Stafford County Economic Development Authority.

Liz Barber, Director of Economic Development and Tourism for Stafford County, said the project addresses a critical inventory gap. "Stafford County continues to experience strong demand from companies seeking modern, flexible industrial space with direct access to the I-95 corridor. As interest from advanced manufacturing, technology, defense, logistics and government contracting companies continues to grow, developments like Austin Ridge Business Park help address a critical market need while expanding the inventory of high-quality sites available to employers," Barber said.

Merritt's Second Stafford Project Follows Fully Leased First Development

Austin Ridge Business Park is Merritt Properties' second development in Stafford County. The company's first project in the county, Merritt Business Park at Quantico Corporate Center — with buildings at 600 Corporate Drive and 650 Corporate Drive — is fully leased, which the firm cited as evidence of sustained demand for modern industrial space in the Fredericksburg region.

Scott Longendyke, regional director in Merritt Properties' Virginia office, said the company sees continued opportunity along the corridor. "We're excited to expand along the I-95 corridor as the Fredericksburg region continues to attract new businesses. Stafford County has been a strong partner throughout our development efforts, and Austin Ridge will provide flexible, modern space where local and regional businesses can grow and succeed," Longendyke said.

Merritt Properties, established in 1967, is a privately held commercial real estate company with a portfolio of more than 21 million square feet of Class A office, flex, warehouse, industrial, retail and build-to-suit properties across Maryland, Virginia, North Carolina and Florida.

Capital Raise Supports Shallow-Bay Industrial Push

The Austin Ridge groundbreaking follows Merritt Properties' announcement on July 1, 2026, of a $750 million strategic investment led by Centerbridge Partners, with capital earmarked to expand the company's shallow-bay industrial portfolio across existing and new markets. The Austin Ridge development reflects that strategic direction, as Merritt accelerates its focus on smaller-bay industrial product.

Cushman & Wakefield | Thalhimer, the exclusive leasing agent for Austin Ridge, was founded in 1913 and operates offices across Virginia, including Richmond, Newport News, Virginia Beach, Fredericksburg, Roanoke, Charlottesville and Lynchburg. The firm manages a property portfolio of 56 million leasable square feet and completed more than 1,880 transactions totaling over $2.04 billion in transactional volume in 2025. Thalhimer is an independently owned and operated member of the Cushman & Wakefield Alliance.

Leasing information for Austin Ridge Business Park is available at www.LeaseAustinRidge.com.

Sources: Merritt Properties press release, PR Newswire, Aug. 4, 2026