Commercial Real Estate Insights
The economy is improving, as are some sectors of commercial real estate. Although we are seeing improvements, it remains uneven across property types and geographic markets. The multifamily, industrial, and retail property markets are coming back strongly. The recovery has not been as robust in the office and hotel property markets, although the hospitality industry is on an upward trend as travel becomes more frequent.
According to the RER Economic Sentiment Index Report, “Absorption in the multifamily market is at a decade-high level, with asking rents up nearly 11% year over year. In the industrial market, asking rents are up nearly 7%. In the retail market, rents are up by 2% year over year. On the other hand, the office market continues to experience a decline in occupancy, with 144 million square feet of office space released to the market and the average asking rent declining by about half a percent.”
U.S. hotel occupancy rates continue to slowly make their way back toward 2019 levels. We can also expect to see more business and convention travel, as executives at both American Airlines and United Airlines recently pointed to stronger demand for business travel in the second half of this year.
Locally, the multi-family industry is booming, as there is a 21.5% rent increase for the average Asheville apartment in the last year, according to Asheville Citizen-Times. The newest census also showed us that the Asheville area population was very much on the rise, with Buncombe County’s population increasing 12.9% from 2010. Larger groups of people investing in Western North Carolina’s economy keeps us on an upward trajectory.
Q3 2021 Commercial Activity Review:
- 17 Industrial Transactions for $71.3 million
- 20 Office Transactions for $48.2 million
- 32 Retail Transactions for $81.2 million
- 9 Multi-family Transactions for $124 million
- 54 Land Transactions for $51.4 million
Q3 2021 Lease Activity Review:
- 8 Industrial Lease Transactions, Vacancy Rate of 4.1%
- 37 Office Lease Transactions, Vacancy Rate of 3.4%
- 34 Retail Lease Transactions, Vacancy Rate of 3.0%
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:
86 Lily Pad Lane in Flat Rock
MLS# 3781265 | 25 Acres | $5,750,000
This incredible resort offers a mountain retreat in the heart of historic Flat Rock, NC, situated on 25 stunning acres on Highland Lake. There are 63 bedrooms, an abundance of meeting spaces and reception facilities, and an award-winning restaurant, Seasons, that complete this spectacular property.
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.