2018 Commercial Activity:
According to CoStar sales data, 2018 was the best year for commercial real estate in Western North Carolina. Our four-county MSA (Buncombe, Henderson, Haywood, and Madison) saw just over $700 million in sales last year. That bested 2016’s previous high-water mark by $100 million! In comparison, the region only saw $92 million in closed transactions in 2009.
Leading the way in 2018 were sales of retail and multi-family properties, each totaling more than $170 million. The Asheville Market (Whole Foods center), located at 4 S. Tunnel Road, sold for $33 million in February. The Asheville Exchange Apartments on Brevard Road sold for a record $56 million.
As for 2019, we predict a slight cooling in our market. This should be particularly notable when it comes to the development of new apartments and hotels, especially in Asheville’s Central Business District. That said, our unemployment is extremely low, the economy continues to impress, and people are flocking to our beautiful area in record numbers, so 2019 should still be a very good year.
- 23 Industrial Transactions for $22.5 million
- 75 Office Transactions for $103.7 million
- 108 Retail Transactions for $188.8 million
- 32 Multi-family Transactions for $171 million
- 192 Land Transactions for $92.8 million
2018 Lease Activity:
Total lease transactions were mixed, but vacancy rates remain below 3%.
- 77 Industrial Lease Transactions, Down 24 from 2017
- 162 Office Lease Transactions, Up 18 from 2017
- 137 Retail Lease Transactions, Down 26 from 2017
2018 Residential Activity:
Beverly-Hanks President Neal Hanks, Jr. has delivered his end-of-year Market Report for 2018. Watch the video below or continue reading below for a summation.
Last year, an impressive 9,200 homes sold. However, that pace represents a cooling of the market to a relatively flat sales pace (2% increase for the year). In 2018, there were 10% more homes available for sale across the nine-county region. Across the region, tight supply has reduced the number of homes selling for under $300,000.
While the Asheville MSA’s home affordability has become more challenging, it remains attractive to buyers from many other locales. Buyers are looking for livability in smaller markets, and often, that means moving from a high-cost/high-tax market to lower cost secondary markets like those in the Asheville MSA. This influx of out-of-town buyers should provide plenty of demand to maintain a healthy sales pace for the region.
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 associate or click here.