Starting Strong: NAI Beverly-Hanks Q1 2022 Commercial Market Report

602 & 600 W State Street in Black Mountain
Featured Listing (see below): 602 & 600 W State Street in Black Mountain

Commercial Real Estate Forecast

A strong economy generally benefits real estate, and 2021 proved just that. With the U.S. economy growing at 5.6% during 2021, annual CRE sales volume crossed $600 billion for the first time ever through November. While optimistic about the economic outlook going forward in 2022, inflation and a rising interest rate environment present unique circumstances for a real estate industry that raised significant capital and gained momentum through 2021.

According to Forbes, seven trends will be prominent for the remainder of 2022: 

  1. Significant capital and available debt will contribute to another year of growth.
  2. Secondary markets will outgrow the country’s major cities.
  3. The housing hot streak will (most likely) continue.
  4. Offices will change, but they won’t shutter.
  5. Real estate will welcome more quantitative analysts to the mix.
  6. Proptechs (property technology) and managers will likely engage in more partnerships and deals.
  7. And, construction costs will rise, benefiting existing assets.

With these trends in mind, experts expect another strong year for the commercial real estate industry. Locally, that is ringing true. Rental properties are in very high demand, new apartment complexes and businesses are opening frequently, and according to Tom Tveidt, an economist and founder of Syneva Economics, an Asheville economic research firm, population has been on the rise: “We have one thing about us that’s unique—we grow every year, and we’ve been doing that every year for the past 40 years.” This combination creates a hot spot for commercial real estate to continue to thrive.   

Download a PDF of the report.

Info from The Real Estate Roundtable Sentiment Index, FS investments, NAR Commercial Market Insights, and Fortune Builders. 

Q1 2022 Commercial Activity Review:

  • 10 Industrial Transactions for $19.4 million
  • 18 Office Transactions for $65 million
  • 38 Retail Transactions for $45 million
  • 8 Multi-family Transactions for $57.2 million
  • 28 Land Transactions for $21.1 million

Q1 2022 Lease Activity Review:

  • 12 Industrial Lease Transactions, Vacancy Rate of 4.0%
  • 25 Office Lease Transactions, Vacancy Rate of 3.2%
  • 37 Retail Lease Transactions, Vacancy Rate of 2.3%

All data that we share is for the four-county MSA (Buncombe, Henderson, Haywood, and Madison) and is provided by CoStar. 

About the Featured Listing:

602 & 600 W State Street Black Mountain

MLS# 3820185 | 4.22 Acres | $3,700,000

This is an amazing redevelopment opportunity! The property currently features two hotels situated on 4.22 acres with 580 feet of frontage on U.S. Highway 70. This is an ideal location for large box retail, grocery, a quick-service restaurant (QSR), or national credit tenants. With available utilities, highway-level access, and multiple curb cuts, the opportunities with this property are endless. The combined lands will be sold as a package. Call to schedule showings.


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.