Q3 2019 Commercial Activity:
The sale of two apartment complexes in Asheville accounted for almost $125M of the $278M in commercial transactions for the third quarter. The District, located on Fairview Road near Biltmore Village, sold for $71,500,000. Skyland Exchange, located off Long Shoals Road in Arden, sold for $52,750,000. With 309 units, The District sold for a record-breaking $231,000 per unit; Skyland Exchange sold for close to $182,000 per unit.
Excluding the two large apartment sales, the rest of the commercial market was relatively flat compared to this time last year. Retail and office sales were down slightly while lands sales were up.
- 9 Industrial Transactions for $4.1 million
- 55 Office Transactions for $12.8 million
- 42 Retail Transactions for $25.8 million
- 12 Multi-family Transactions for $138.5 million
- 47 Land Transactions for $29.0 million
All data that we share is for the four county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar.
Q3 2019 Lease Activity:
Total lease transactions were relatively flat in Q3, as well. Vacancies increased slightly for the second quarter in a row. The industrial vacancy rate increased to 2.5%, the office vacancy rate was slightly up at 2.3%, and the retail vacancy rose from 1.5% to 2.5%. Net absorption of leased space was slightly negative for office and retail, while industrial was a positive 63,000 square feet. We think we will continue to see increased demand for industrial space.
- 17 Industrial Lease Transactions, Up 16 from Q3 2018
- 21 Office Lease Transactions, Down 29 from Q3 2018
- 35 Retail Lease Transactions, Up 34 from Q3 2018
All information is as of 10/7/2019 as provided by CoStar.
Q3 2019 Residential Activity:
Thus far, 2019 has been favorable to the home buyers and sellers of Western North Carolina. Slower home price appreciation and unexpectedly low mortgage interest rates have kicked buying back into high gear. However, limited choice fueled competition among buyers and gave renewed negotiating confidence to sellers.
Buncombe County’s median sales price continues to lead the region at $315,000. Rutherford County is the most affordable at $182,700.
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.