Cost + Taxes

Real Estate Costs

The Fredericksburg Region is ideally situated equidistant between Richmond and Washington D.C., and offers a variety of real estate options for businesses of all industries. The FredRegion is the northernmost location in the commonwealth with greenfield sites over 1,000 acres on Interstate 95. There are great redevelopment opportunities in historic downtown Fredericksburg and available warehouse and manufacturing buildings situated throughout the region that can meet the needs of any business. 

 

Office

Gross Rent Per SF
$22.33/5 Yr Avg.
  • Vacancy Rate  – 12.7% 5 Yr Avg

Ind / Flex

Rent Per SF
$5.86/5 Yr Avg.
  • Vacancy Rate – 11.1% 5 Yr. Avg.

Retail

NNN Rent Per SF
$14.81/5 Yr Avg.
  • Vacancy Rate – 4.9% 5 Yr Avg.

Overall

Price Per SF
$12.30/5 Yr Avg.
  • Vacancy Rate – 8.5% 5 Yr Avg.

State Taxes

Corporate Tax Rate – 6% (Since 1972)

Sales Tax – 5.3%

 

Local Real Estate Taxes

Caroline – 0.83 Rate Per $100 of Assessed Valuation

City of Fredericksburg – 0.80 Rate Per $100 of Assessed Valuation

King George – 0.70 Rate Per $100 of Assessed Valuation

Spotsylvania – 0.85 Rate Per $100 of Assessed Valuation

Stafford – 0.99 Rate Per $100 of Assessed Valuation

 

Regional Tax Comparison

Fredericksburg Region has some of the lowest taxes per capita in the Commonwealth. When factoring in our highly skilled workforce, business infrastructure, and strategic location the Fredericksburg Region is one of the best regions to do business in the Commonwealth of Virginia.

 

Source: Fiscal Analytics LLC

Data Center Tax Initiative

With increasing industry interest, the Fredericksburg Region is poised for major growth from the data center sector. Our region has taken steps to capitalize on this great opportunity by collaborating on initiatives that make us competitive and attractive for these projects. 
A great first step for the region is all five localities have agreed to standardize the personal property tax rates on data center depreciation schedules. Changes include setting this tax rate at $1.25 per hundred for data center equipment and our depreciation schedules will also align at 50% year one, 35% year two, 20% year three, 10% year four, and 5% year five. This collaborative effort enhances our region’s reputation of being business-friendly and forward thinking when it comes to attracting business.