Q3 2018 Commercial Activity:
We witnessed some significant swings in commercial real estate for Q3. The industrial sector was off 80% from the second quarter. But office business was up 34%. Retail transactions were up 71%, but multi-family was down 70%. And land closings were off 35% from what they were in the spring.
Luckily, these large fluctuations are not uncommon with high-priced commercial real estate. Overall, total commercial volume for the third quarter was down $25 million (a more modest -15%) compared to Q3 2017. Our market is healthy, inventory is very tight, and financing is available!
- 8 Industrial Transactions for $5 million
- 32 Office Transactions for $20.5 million
- 50 Retail Transactions for $45.8 million
- 12 Multi-family Transactions for $21.2 million
- 48 Land Transactions for $21 million
Q3 2018 Lease Activity:
Total lease transactions were down, but vacancies continue to drop and rents continue to rise. The average rent for industrial/flex space in Asheville’s MSA is just under $7.00/foot. Similar space rented for just under $4.00/foot four years ago. That’s an increase of 75%!
- 15 Industrial Lease Transactions, Down 5 from Q3 2017
- 28 Office Lease Transactions, Down 3 from Q3 2017
- 27 Retail Lease Transactions, Down 13 from Q3 2017
Q3 2018 Residential Activity:
Beverly-Hanks President Neal Hanks, Jr. has delivered the third quarter 2018 Market Report. Watch the video below or continue reading below for a summation.
Our housing markets remain active but appear to be transitioning toward a more modest pace. Steady demand and the shortage of homes will likely cause home values to continue increasing, but at a slower pace.
Those selling their homes still have the edge in 2018. As the sales pace moderates and supply loosens, sellers will start to lose their edge. It is far too soon to call a buyer’s market, but we are heading in that direction. Right now, there are still plenty of opportunities in local real estate markets if buyers and sellers are willing to think creatively.
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.