Commercial Real Estate Forecast
2022 was another dynamic year for the commercial real estate world. From less of a demand for apartments to more for retail spaces to the office sector lagging behind, the shifting market continues, following the pattern of many quarters before this. With a focus on the good news, consumers are indulging in retail therapy. According to Costar, “Retail sales rose by 1.3% in October and were 8.3% higher than last year’s levels, according to the Census Bureau’s report on retail trade and food sales.”
With 2021 still heavily relying on remote work and workers, more employees returned to the office in 2022, but office space is being utilized differently than has been traditional. “The office is now all about using space differently and freeing up space to create gathering, amenity, or services spaces that will make it so the office is commute-worthy and a better experience,” states Kay Sargent, global architecture firm HOK’s director of workplace design.
In local news, Asheville was ranked #19 on Livability’s “Best Places to Live in 2022”, citing a robust economy and the ability for remote working as factors. The economy certainly is bustling; thanks to AVLToday, we already know of nine new restaurants and beverage spots opening in 2023. And several new hotels and multi-family developments are taking shape throughout the city. As needs and demands shift, both nationally and locally, the economy remains strong, with hopes for a steady 2023.
Info from Costar, Livability, and AVLToday.
Download a PDF of the report.
Q4 2022 Commercial Sales Activity Review:
- 2 Industrial Transactions for $13 million
- 16 Office Transactions for $17.6 million
- 18 Retail Transactions for $39 million
- 7 Multi-family Transactions for $15.9 million
- 16 Land Transactions for $19.5 million
Q4 2022 Commercial Lease Activity Review:
- 6 Industrial Lease Transactions, Vacancy Rate of 4.5%
- 38 Office Lease Transactions, Vacancy Rate of 2.9%
- 24 Retail Lease Transactions, Vacancy Rate of 1.8%
All data that we share represents 2022 data as provided by CoStar for the region.
About the Featured Listing:
25 Rankin Avenue #2 in Asheville
MLS# 3918058 | 3,539 Square Feet | $2,550,000
Live and work in Downtown Asheville—all from one location! This unique property offers you the opportunity to live in one space and operate a retail or other business out of the other, live in one and lease the other, or lease both for even more passive income.
The recently renovated, 2,603-square-foot residence boasts 14-foot ceilings with exposed ductwork, a chef’s kitchen, historical 10-foot windows, original heart pine floors, polished concrete floors, columns and beams, period details, and luxurious finishes throughout. The retail/office space of 936 square feet has hardwood floors, huge windows, a bathroom, and excellent street corner exposure to walking and driving traffic. There’s a private driveway that’s currently leased to another unit. One year of parking will be provided in the civic center garage.
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.