Q1 2020 Commercial Activity:
Predictions for the commercial real estate industry were conservatively optimistic at the start of the year. In our Year End 2019 Market Report, we indicated that a robust first quarter was unlikely, which was confirmed in some segments by the first quarter’s data.
Entering an election year, coupled with ongoing trade tensions, had some evaluating the industry from a distance. However, a steady stream of investors, new businesses, and residents were forecasted as a result of a strong economy and low unemployment rate. Consequently, Western North Carolina’s commercial real estate industry experienced a steep increase in retail and multifamily transaction volume, and land transactions more than doubled that of the first quarter in 2019.
- 6 Industrial Transactions for $5.2 million
- 12 Office Transactions for $9.6 million
- 33 Retail Transactions for $47 million
- 10 Multifamily Transactions for $75.1 million
- 30 Land Transactions for $22.5 million
Q1 2020 Lease Activity:
Unsurprisingly, the predictions for the second quarter of 2020 are grim for those tenants and property owners dealing with the financial impact of COVID-19. Our team, along with our CRE peers throughout the country, have been working hard to mediate agreements between tenants and landlords.
A significant amount of leasing activity is expected for the coming quarter, if not the remainder of the year. However, with these existing challenges, there is also opportunity. Many investors looking for long-term stability are proactively reallocating resources to commercial real estate, and there is little doubt our region’s broad appeal will continue to garner interest from investors and entrepreneurs alike.
- 14 Industrial Lease Transactions, Vacancy Rate of 6.3%
- 35 Office Lease Transactions, Vacancy Rate of 3.0%
- 37 Retail Lease Transactions, Vacancy Rate of 3.1%
All data that we share is for the four county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar.
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 agent or click here.