Commercial Real Estate Insights
The first quarter of 2026 has begun to validate what we were hoping for at the close of last year: a gradual but meaningful return to “business as usual.” While the phrase may seem unassuming, in today’s market, it shows a steadying of activity across our commercial real estate landscape.
After a prolonged period where many transactions were driven by displacement and recovery needs following Hurricane Helene and subsequent disruptions, we are now seeing a more typical mix of tenant expansion, new business formation, and planned relocations. Local and regional clients and investors are once again trending toward making forward-looking decisions rather than reactive ones.
Retail and restaurant users continue to lead much of the momentum. We’ve seen Gemelli, a popular Italian eatery, move from its location in Westgate Plaza to the former home of Aandaz in Biltmore Village. Baba Nahm has expanded to a second location in the S&W Cafeteria, and most recently, The Scheffer Group, the culinary group behind Vinnie’s, Jettie Rae’s Oyster House, and Gan Shan, is launching a new Chinese-American eatery on Merrimon Avenue called The Majestic.
The reopening and reshuffling that characterized much of 2025 have given way to more stable occupancy patterns, with several second-generation spaces being absorbed more quickly than in previous quarters. This is a positive signal for those who weathered extended vacancies last year.
We are also seeing encouraging movement in the small-to-mid industrial segment. Local businesses—many of which adapted operations during the past year—are now seeking more efficient or permanent space solutions. While larger institutional activity remains hampered by broader financial and economic conditions, the backbone of the WNC market—locally driven enterprise—continues to show resilience and progression.
While noting this stream of new concepts and businesses entering the market early this year, there have been some consolidations as investors and businesses improve their footprints. This balance is typical of a stabilizing market and shows a healthier overall environment.
Tourism, while not fully normalized, has shown early signs of improvement compared to the same period last year. This has had a direct impact on downtown foot traffic and leasing confidence, both of which are critical to our market.
In short, Q1 2026 has not been without challenges—but it has reintroduced a sense of rhythm to the market. For many in commercial real estate, a return to predictability is very welcome. It signals a positive outlook as we enter the warmer months and peak tourist season for our region.
Q1 2026 Commercial Sales Activity Review:
- 6 Industrial Transactions for $11.8 million
- 20 Office Transactions for $12.9 million
- 29 Retail Transactions for $59 million
- 6 Multi-family Transactions for $13.3 million
- 9 Land Transactions for $20.5 million
Q1 2026 Commercial Lease Activity Review:
- 11 Industrial Lease Transactions, Vacancy Rate of 4.6%
- 35 Office Lease Transactions, Vacancy Rate of 2.5%
- 27 Retail Lease Transactions, Vacancy Rate of 1.5%
All information represents 2025 data as provided by CoStar for the region.
Download our full Quarterly Market Report.
About the Featured Listing
615 Biltmore Avenue in Asheville
MLS#: 4366733 | 625 SF | $1,850,000
Listed by: Karl Nelson, CCIM & Jane Brody (Commercial), Brent Russell & Emily Butcher (Residential)
A rare 8-unit investment opportunity in the sought-after Beverly Condominiums. This portfolio includes six 1BR/1BA units and two 2BR/2BA units, providing a strong unit mix to support consistent rental demand. Ideally located with excellent walkability to shopping, dining, and Mission Hospital, and just minutes to downtown Asheville and Biltmore Village. The community is quiet and well-maintained, appealing to long-term tenants seeking a peaceful residential setting. Each unit offers a low-maintenance, lock-and-go lifestyle, making ownership streamlined and efficient. A compelling opportunity to acquire scale in a proven Asheville location with enduring rental appeal.
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