For its third move in three years, a tech company is joining the swarm in Scott’s Addition, in a building being revamped by a prominent Richmond real estate firm.
California-based CloudBees plans to move its Richmond office in August to 3400 W. Leigh St. The company leased about 10,000 square feet of a building, owned by Thalhimer Realty Partners, that spans nearly the entire block at the corner of West Leigh Street and Roseneath Road.
CloudBees and its roughly 40 local employees have a 5,500-square-foot office at 16 S. 17th St. in Shockoe Bottom. Prior to that, the company was in a 1,600-square-foot space in the Manchester Pie Factory at 612 Hull St.
CloudBees sells software and infrastructure that companies use to launch and manage web applications. Its customers have included WebMD, Morningstar and Bleacher Report.
Mike Lambert, vice president of global sales, said the company’s growth necessitated more space in Richmond. He said having a younger workforce influenced the decision to move to one of Richmond’s trendiest neighborhoods, with a recent influx of breweries, restaurants and apartments.
“Most folks are under 30,” he said of CloudBees’ Richmond workers. “We were looking for a fun environment and Scott’s Addition was at the top of the list.”
Lambert said he didn’t really look anywhere else for a new office. He hopes to be in the new Scott’s Addition space for the next five years.
The 106,000-square-foot building CloudBees is occupying will be redeveloped by Thalhimer Realty Partners, the development arm of real estate firm Cushman & Wakefield | Thalhimer. TRP bought the property in March for $4.12 million with long-term plans of converting it into a mixed-use development.
Thalhimer’s Matt Raggi said MGT Construction, Thalhimer’s construction arm, began work on CloudBees’ new office last month. SMBW is the architect and Xenith Bank is financing it.
Raggi said CloudBees reached out to Thalhimer around December, when the development company had the Roseneath Road building under contract.
“They are a strong lead tenant for the redevelopment of the building,” Raggi said of CloudBees.
7 Hills Advisors represented CloudBees in the leasing. Thalhimer brokers Jason Guillot and Mac Wilson represented the landlord.
Guillot said demand for space in Scott’s Addition remains high due to the area’s mix of restaurants and breweries – a selling point for companies seeking to attract and retain employees during a time of low unemployment.
“We’re seeing a tremendous amount of demand from companies that currently occupy traditional office space in the suburbs or downtown, but are very interested in moving into a neighborhood that’s on the move,” Guillot said. “I think it’s going to continue. I think it’s a trend that is sustainable.”
As for the future of 1500 Roseneath Road, Raggi said it is undecided whether the building will be torn down to make way for new construction.
“The plans have not been ironed out for 10, 15 years down the road,” he said.
The bulk of the building is occupied by industrial and warehouse tenants, like Dominion Textile Services, but Thalhimer is in talks with another office user for a 3,800-square-foot space at the property.
In the meantime, TRP continues other projects around town. Construction is wrapping up on the Courtyard Lofts in Scott’s Addition and a 90-apartment property at 3200 W. Clay St., and it is in talks with retail tenants for its City View Landing development taking shape on the former Reynolds South facility in Manchester.