Cycling through: NAI Beverly-Hanks Q1 2023 Commercial Market Report

323 Broadway Street in Asheville
Featured Listing (see below): 323 Broadway Street in Asheville

Commercial Real Estate Forecast

There may be challenges ahead for commercial real estate. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain concerns persist, and inflation is near a 40-year high, prompting the Fed to steadily increase interest rates. But there are a few bright spots. Locally, multi-family properties continue to perform well, and the hot streak for industrial properties remains.

Global supply chain disruptions that peaked in the early months of the pandemic persist, but showed further signs of easing in Q1, according to CoStar data. As e-commerce increases, so does the need for warehouses and industrial space. “Last mile” distribution facilities are critical to achieving speedy turnaround delivery times and are helping to drive the sector.

“E-commerce will likely serve as a tailwind for the logistics industry—and industrial warehouse and distribution properties— for at least 10 years,” said Victor Calanog, Head of Commercial Real Estate Economics at Moody’s Analytics.“The industry has begun to respond and deliver record amounts of new warehouses.”

In contrast, the future of office buildings remains up in the air as knowledge workers continue to prefer working from home. In some cases, the right location with the right amenities—think optimized floor plans for collaboration, private outdoor space, and onsite services—may bring employees back to the office. It is, however, important to note that no U.S. regions have seen vacancy rates dip below their pre-pandemic, Q4 2019 levels.

There’s nothing new about commercial real estate’s cyclical nature. Property owners and investors with fortress balance sheets understand how to take advantage of these ups and downs. There are often overleveraged building owners during an economic downturn. That presents well-prepared investors with an opportunity to grow their portfolio at a lower cost.

Download a PDF of the report.

Q1 2023 Commercial Sales Activity Review:

  • 7 Industrial Transactions for $12 million
  • 13 Office Transactions for $10.9 million
  • 19 Retail Transactions for $20 million
  • 3 Multi-family Transactions for $55.5 million
  • 16 Land Transactions for $19 million

Q1 2023 Commercial Lease Activity Review:

  • 13 Industrial Lease Transactions, Vacancy Rate of 4.2%
  • 44 Office Lease Transactions, Vacancy Rate of 3.0%
  • 27 Retail Lease Transactions, Vacancy Rate of 1.5%

All information represents 2023 data as provided by CoStar for the region.

323 Broadway Street in Asheville

About the Featured Listing:

323 Broadway Street in Asheville

MLS# 4014115 | 0.18 Acres | $2,890,000

This mixed-use, income-producing property overlooks the vibrant Five Points neighborhood on Broadway Street in Asheville. The newly constructed property (2020) features two commercial shells with street visibility that can be customized to suit the needs of the tenant/owner. After just a short walk, reach downtown Asheville’s lively bars and restaurants. Location on the Reed Creek Greenway also provides easy access to outdoor recreation. 

The property includes four professionally managed and fully furnished vacation rentals, each with two bedrooms and two bathrooms. The units feature high-end finishes and private balconies. Furnishings and equipment convey with the sale. Guests can relax on the luxurious outdoor rooftop lounge with stunning mountain and downtown Asheville views. The property also includes off-street parking with 10 parking stalls. The elevator services all four levels. This is an excellent opportunity to own prime downtown Asheville income-producing property.


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.