Demand for Small-Bay Warehouse Space Drives Light Industrial Development

STAFFORD, Va., Aug. 4, 2026 /PRNewswire/ — Merritt Properties, a full-service commercial real estate developer with over 21 million square feet of space throughout Maryland, Virginia, North Carolina and Florida, has broken ground on Phase I of Austin Ridge Business Park in Stafford, Virginia. This phase will include two Class A light industrial buildings totaling 140,000 square feet, part of a planned five-building development designed to provide flexible, small-bay warehouse space for businesses throughout the region.

Located along I-95 between Washington, D.C., and Richmond, Austin Ridge Business Park marks Merritt’s second project in Stafford County. The company’s first development, Merritt Business Park at Quantico Corporate Center, is fully leased, reflecting continued demand for modern industrial space in the Fredericksburg region. According to Cushman & Wakefield’s Q2 2026 MarketBeat report, the Fredericksburg industrial vacancy rate decreased to 6.2%, down from 7.2% a year earlier, further demonstrating the strength of the local market.

Since 2020, Stafford County has gained nearly 14,000 residents and experienced about an 18% increase in private-sector businesses. The county also added 1,671 jobs between July 2025 and June 2026, based on data from the Stafford County Economic Development Authority. This momentum, combined with the county’s strategic location, has strengthened demand for industrial warehouse space. However, active developers are largely focused on bulk facilities exceeding 200,000 square feet, leaving the 8,000- to 25,000-square-foot segment underserved with few options in newly constructed buildings.

“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,” said Wilson Greenlaw, CCIM, SIOR, exclusive leasing representative with Cushman & Wakefield | Thalheimer.

The two buildings included in Phase I will offer flexible layouts ranging from 3,600 to 99,000 square feet to meet a variety of business needs. Similar to Merritt’s Quantico property, the buildings are designed to support a diverse range of users, including advanced manufacturing, warehousing and distribution, construction, government contracting, home improvement trades, technology services and more.

“Stafford County continues to experience strong demand from companies seeking modern, flexible industrial space with direct access to the I-95 corridor,” said Liz Barber, Director of Economic Development and Tourism for Stafford County. “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. We are excited to showcase this project as we continue marketing Stafford County to our targeted industry sectors and supporting long-term economic growth.”

The buildings will feature clear heights of 20 to 32 feet, rear-loading docks, drive-in doors and truck courts ranging from 120 to 180 feet. Merritt’s in-house design and construction teams can also customize spaces to meet individual tenant requirements.

“We’re excited to expand along the I-95 corridor as the Fredericksburg region continues to attract new businesses,” said Scott Longendyke, regional director in Merritt Properties’ Virginia office. “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.”

To learn more about Austin Ridge Business Park, visit www.LeaseAustinRidge.com

About Merritt Properties
Established in 1967, Merritt Properties is a privately held commercial real estate company offering a portfolio of more than 21 million square feet of Class A office, flex, warehouse, industrial, retail and build-to-suit throughout Maryland, North Carolina, Florida and Virginia. Capabilities include leasing, property development and management, and financing. Merritt Properties is committed to “Creating Homes for Businesses” and providing the highest quality service to its customers. For more information, visit www.merrittproperties.com.

About Cushman & Wakefield | Thalhimer
Thalhimer was founded in 1913 and currently has offices in Richmond, Newport News, Virginia Beach, Fredericksburg, Roanoke, Charlottesville, and Lynchburg, Virginia. The company has nearly 100 broker professionals and employs approximately 545 associates. Thalhimer represents, on behalf of its clients, a property portfolio of 56 million leasable square feet, management of more than 21 million square feet of commercial property, and nearly 13,000 multifamily units. In 2025, Thalhimer completed over 1,880 transactions with a transactional volume of more than $2.04 billion. Thalhimer is the region’s leading provider of comprehensive commercial real estate services, including corporate services, investment sales, tenant representation, project management, asset management, and the sale and leasing of office, industrial and retail properties. To learn more, visit www.thalhimer.com.
Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

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SOURCE Merritt Properties, LLC