How is the Commercial Real Estate Market?
Predictions for the commercial real estate industry in the second quarter of 2020 were far from optimistic as the full economic impact of COVID-19 rolled through the market. With lockdown orders in place, the industry stalled abruptly and professional efforts turned to assisting landlords and tenants navigate the storm of fiscal uncertainty and mass unemployment. Concern lingers for retail and hospitality sectors as financial institutions implement stricter safeguards around lending and the tourism industry continues to fluctuate.
There appears to be hope for the future, however, as job opportunities increase and the economy recovers. The Real Estate Roundtable 2020 Q2 Economic Sentiment Index, a survey-based research model, registered a 49-point disparity between current and future indices, the largest disparity ever registered in the 12-year history of the report. This indicates a steep recovery for the commercial real estate industry. Commercial real estate professionals are pivoting and evolving, evaluating innovative capital solutions to enhance opportunities for investors. Locally, the revival of the tourism industry, which accounts for 15% of Buncombe’s workforce, will be the key to recovery for the remainder of 2020.
Q2 2020 Commercial Activity:
- 5 Industrial Transactions for $3.7 million
- 9 Office Transactions for $9.6 million
- 28 Retail Transactions for $25.1 million
- 4 Multifamily Transactions for $85.5 million
- 27 Land Transactions for $22.7 million
Q2 2020 Lease Activity:
- 13 Industrial Lease Transactions, Vacancy Rate of 6.1%
- 22 Office Lease Transactions, Vacancy Rate of 3.2%
- 29 Retail Lease Transactions, Vacancy Rate of 3.3%
All data that we share is for the four county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar.
All real estate is local. In order to make confident real estate decisions, we believe 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.