Year End 2019 Commercial Activity:
2019 was the second best year for commercial real estate in Western North Carolina, trailing only 2018. The four-county MSA reported just over $595 million in 2019 sales. In contrast, the region experienced only $92 million in closed transactions a decade ago.
In 2019, all sectors reported strong sales, with retail, office, and multi-family transactions each exceeding $100 million. Local transactions making national news included The District and Skyland Exchange, with reported sales of $71.5 million and $52.75 million respectively.
- 36 Industrial Transactions for $42.8 million
- 73 Office Transactions for $110 million
- 146 Retail Transactions for $134 million
- 44 Multi-family Transactions for $168 million
- 236 Land Transactions for $138 million
Year End 2019 Lease Activity:
On the leasing front, increasing rent is beginning to signal cooling in the local market. This cooling is evidenced by the reported 300 lease transactions in 2019 compared to 396 in 2018. Vacancies inched slightly upward to 2.9% from 2.0% a year ago.
- 60 Industrial Lease Transactions, Down 19 from 2018
- 108 Office Lease Transactions, Down 58 from 2018
- 132 Retail Lease Transactions, Down 19 from 2018
All data that we share is for the four county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar.
2020 Predictions for CRE in WNC
The early outlook for 2020 suggests real estate remains an attractive investment. This likely ensures continued growth in commercial sectors, albeit slower than that witnessed in 2019. As we head into 2020, investors are likely to look to investment opportunities as a vehicle to weather economic uncertainty during an election year. However, speciality opportunities, such as investments in active lifestyle senior housing and health related storefronts, are expected to continue in popularity and provide fiscal return in the coming decade as the Baby Boomer generation transitions.
Currently, the economy is strong and unemployment is low. As long as these tailwinds continue, we predict a positive and notable year for commercial real estate transactions in the nine-county region. Our area is becoming increasingly well-visited and nationally recognized, creating organic opportunities for standard and entrepreneurial investments.
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.