Under Pressure: NAI Beverly-Hanks Q3 2022 Commercial Market Report

101 Patton Avenue in Asheville
Featured Listing (see below): 101 Patton Avenue in Asheville

Commercial Real Estate Forecast

Inflation continues to put pressure on the commercial real estate sector and the marketplace is evolving in response. After a thriving 2021, there has been a definite softening in commercial real estate growth in 2022, but not across the board. Sectors such as retail and office struggled somewhat, while multi-family continued the upward trajectory to which we have become accustomed. Rising mortgage rates and home prices are most likely a factor here, forcing many to rent for longer due to decreasing affordability.

The focus on affordability is evident in Western North Carolina, but with a trending twist: “microhousing.” Small, single dwellings with multi-functional furnishes are on the rise in the area. According to WLOS News 13, “Two proposals to bring more affordable housing to

the Asheville area have gained approval from a key city committee.” Additionally, the community will see more microhousing developments take shape. The Asheville Citizen-Times reports that the City of Asheville’s Planning and Zoning Commission has approved “80 rental units, all between 180–250 square feet” on Hilliard Avenue, downtown. It is clear that the area is adapting to the pressures of inflation, and we have a robust multi-family sector to show for it.

Inflation, interest rates, the supply chain, and geopolitical events have impacted every corner of the economy, including the local commercial real estate landscape. NAI Beverly-Hanks is here to help you navigate and invest with the bigger picture in mind.

Download a PDF of the report.

Q3 2022 Commercial Sales Activity Review:

  • 7 Industrial Transactions for $14 million
  • 16 Office Transactions for $27.1 million
  • 34 Retail Transactions for $32.2 million
  • 15 Multi-family Transactions for $257 million
  • 31 Land Transactions for $48.5 million

Q3 2022 Commercial Lease Activity Review:

  • 10 Industrial Lease Transactions, Vacancy Rate of 4.7%
  • 38 Office Lease Transactions, Vacancy Rate of 3.3%
  • 39 Retail Lease Transactions, Vacancy Rate of 1.9%

All data that we share represents 2022 data as provided by CoStar for the nine-county region.

About the Featured Listing:

101 Patton Avenue in Asheville

MLS# 3900620 | 0,725 SF | 0.13 Acres | $5,900,000

This is an extremely rare opportunity to purchase property currently housing the Jubilee Community Church on two levels in the heart of Downtown Asheville—steps to the Grove Arcade, Pritchard Park, and Harrah’s Cherokee Center & Thomas Wolfe Auditorium. Since the property is in the Central Business District, there is a wide array of potential commercial uses for the existing structure. The upper level has 65 feet of frontage on Wall Street, approximately 5,850 SF inside. The lower level has 65 feet of frontage on Patton Avenue, approximately 4,875 SF inside. The lower level can be demised and sold as a commercial condominium separately. The entrance to the property is directly across from the city-owned Wall Street parking garage with 475 parking stalls. The proximity to surrounding downtown businesses also makes this property ideal for other approved mixed-use redevelopment projects (zoned CBD). With minimal vertical development, the property could take in substantial long-range mountain views.


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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