An Industry in Recovery: NAI Beverly-Hanks Q1 2021 Commercial Market Report

Commercial real estate experts are encouraged by the industry’s ongoing recovery from the pandemic.
Featured Listing (see below): 290 Lance Road in Mills River

Commercial Real Estate Forecast

Commercial real estate experts are encouraged by the industry’s ongoing recovery from the pandemic. Retail providers continue to pivot to meet online demands, shift their strategy to a proactive have-it-to-send-it model, and keep shelves stocked. Thanks to this activity, warehouse space, fulfillment centers, data centers, and logistics needs are still flourishing. In-person retail stores are gaining unexpected traction, though experts warn this may be short-lived as travel opportunities increase and consumers shift their spending habits. Malls and similar shopping centers are experiencing a climbing vacancy rate across the country, a trend witnessed before the pandemic and likely exacerbated by COVID restrictions. 

The multi-family sector and hotels have the attention of industry experts. Distressed sales may become more prominent towards the end of the year. This is especially likely in large cities where listing prices are not reflective of the lowered rental rates and consequential low performance reports. Whereas, secondary markets are seeing a surge in both hotels and apartments as smaller cities and towns become more popular and offer stable investment opportunities. 

Office leasing opportunities are abundant as a result of ongoing remote work environments. Full offices brimming with employees in the nearterm are unlikely, research suggests. In a report by CoStar Group, corporate tenants relinquished a record-breaking 42 million square feet of office space during the second and third quarters of 2020. 

Overall, investors are following property performance and job growth, and industry experts are optimistic about the future of commercial real estate. Locally, the commercial real estate sectors are following national trends, with apartments and warehouses on the rise. Regarding the proposed expansion of an automated warehouse facility in Buncombe County, company CEO Stefano Vitale is confident. “We are exactly where business is growing, and this is what you’re doing in Arden,” she said, as reported by The Asheville Citizen-Times

Download a PDF of the report.

Q1 2021 Commercial Activity Review:

  • 7 Industrial Transactions for $5.1 million
  • 10 Office Transactions for $8.8 million
  • 17 Retail Transactions for $10.9 million
  • 4 Multi-family Transactions for $4.4 million
  • 46 Land Transactions for $30.4 million

Q1 2021 Lease Activity Review:

  • 13 Industrial Lease Transactions, Vacancy Rate of 4.1%
  • 38 Office Lease Transactions, Vacancy Rate of 3.1%
  • 32 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. 

About the Featured Listing:

290 Lance Road in Mills River

MLS# 3719640 | 8.9 Acres | $3,349,500

Currently, this property houses a dog-centric, short term vacation rental business with eight stand-alone cottages near beautiful Asheville, NC. The 17-year-old business has been designed for clients wishing to vacation with their dogs. It has experienced consistent revenue growth since its inception in 2004, close to 80% occupancy rates, and an Average Daily Rate (ADR) of $370. This turnkey business provides potential owners a strong net operating income and a peaceful, fulfilling lifestyle.


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.


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