Commercial Real Estate Forecast
The Asheville metro area received top marks at the start of the second quarter in an analysis of economic and commercial market health across the country. The National Association of REALTORS® (NAR) ranked Asheville as one of the nation’s “Top 16 Commercial Real Estate Markets” in an index citing office, industrial, and retail vacancy well below the national average.
NAR’s Commercial Real Estate Market Conditions Index is calculated using 25 variables pertaining to the metro area’s economic, demographic, and commercial market conditions for multi-family, office, industrial, and retail property sectors, as well as employment conditions in the tourism industry.
Noting the stellar index performance, commercial market analysts are also eyeing inflation rates, which have rocketed to their highest point since the early 1980s. Analysts report that “commercial real estate investments can serve as a hedge against inflation,” according to the Realized Commercial Real Estate Market Analysis Report. The report further explains that “depending on the type of commercial property an investor owns, there may be potential to raise rental rates with rising inflation rates, allowing investment property owners to potentially seek income that keeps pace with prices in the market.”
With commercial vacancy at 2.8% (down from 3.0% in the first quarter), 28 buildings under construction, and more than $330 million in sales, the Asheville commercial real estate market remains a stable investment against the current volatility of the financial markets.
Q2 2022 Commercial Sales Activity Review:
- 4 Industrial Transactions for $3.4 million
- 13 Office Transactions for $19.3 million
- 17 Retail Transactions for $27 million
- 6 Multi-family Transactions for $168 million
- 23 Land Transactions for $47.4 million
Q2 2022 Commercial Lease Activity Review:
- 7 Industrial Lease Transactions, Vacancy Rate of 2.5%
- 31 Office Lease Transactions, Vacancy Rate of 3.5%
- 34 Retail Lease Transactions, Vacancy Rate of 1.8%
All data that we share is for the four-county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar.
About the Featured Listing:
56 Scates Street in Waynesville
MLS# 3799828 | 80,751 SF | 4.22 Acres | $6,200,000
This is a prime opportunity to acquire 80,000+ square feet of pristine industrial space with production, warehouse, and office square footage. With ample space and four 8’x10′ dock doors, two 10’x10′ dock doors, and one 10’x12′ drive-in door, this prime industrial property is move-in ready. Best of all, it’s strategically located less than one mile from Highway US 74 between Asheville, NC; Greenville, SC; and Knoxville, TN, making it a ready location for all your shipping goals.
All real estate is local. In order to make confident real estate decisions, it is important for you to have timely and neighborhood-specific information. For more information about our commercial real estate market, ask your NAI Beverly-Hanks agent or click here.