On the Mend?: NAI Beverly-Hanks Q3 2020 Commercial Market Report

NAI Beverly-Hanks Q3 2020 Commercial Market Report
Featured Listing: 521 Amboy Road in Asheville

Commercial Real Estate Forecast

The commercial real estate market is diligently trying to recover. All eyes are on the pending stimulus package to provide renewed relief to consumers, tenants, and struggling real estate sectors. Many small businesses, restaurants, and local tenants are reaching the tipping point, as the fourth quarter currently marks the end of many financial relief aids.

Regardless, economic optimism is growing, despite the state of the economy. Reports indicate consumers are faulting the pandemic for the current market conditions rather than a distrust in the overall health of the market. Investors are favoring the industrial and multi-family sectors. Alternative sectors, such as cold storage facilities, warehouse space, and data centers, are also surging in demand to meet e-commerce needs. Commercial real estate brokers are reimagining available spaces as potential harbors for these newly popular sectors. Traditional office space, as expected, remains a low priority, while large lease spaces are seeing a surge in demand.

Overall, however, commercial real estate sales are expected to stagger in the near term as sellers refuse to lower price points and buyers push for steeper price reductions. Further, experts looking at the service sector as an indicator of the industry express concern heading into the fourth quarter. COVID-19 restrictions are still hindering in-person transactions and impeding the future of many small businesses. Predictions for the industry’s revival rest heavily on fiscal aid and the possibility of a viable vaccine.

Q3 2020 Commercial Activity:

  • 7 Industrial Transactions for $9.5 million
  • 18 Office Transactions for $14.1 million
  • 39 Retail Transactions for $66.9 million
  • 11 Multifamily Transactions for $5.6 million
  • 49 Land Transactions for $36.4 million

Q3 2020 Lease Activity:

  • 25 Industrial Lease Transactions, Vacancy Rate of 5.2%
  • 20 Office Lease Transactions, Vacancy Rate of 3.4%
  • 40 Retail Lease Transactions, Vacancy Rate of 2.8%

All data that we share is for the four county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar. 

Download a PDF of the report.

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.


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