Commercial Real Estate Insights
We’re quickly approaching one year since the devastation from Hurricane Helene. Every week brings new businesses reopening—either in rebuilt spaces or at new locations throughout the city. And every occasion is a fresh cause for celebration!
Both supply lines and tourism continue to be hampered by closures to roads, bridges, and railways. Most recently, I-40 near the Tennessee line was closed again thanks to fresh landslides in the area. But there are many reasons to be hopeful. I-40 is projected to be open by the July 4th weekend. Norfolk Southern has reported to the N.C. Department of Transportation that they will rebuild the Old Fort Loops, the last section in WNC needed to reconnect eastern NC with Tennessee. And while a number of sections of the 469-mile Blue Ridge Parkway remain closed due to Helene damage and ongoing repairs, much of the Parkway is open around the Asheville area and northward.
Similarly, there is good news and bad news among businesses in the area. On the one hand, Asheville Watchdog reported that around 40 downtown businesses have closed since Helene, including 15 restaurants. Nevertheless, local business leaders remain optimistic. And a number of local businesses continue to receive national accolades. Recently, Food & Wine named Asheville one of “The Top Small US Cities for Food and Drink”, giving shout-outs to restaurants Neng Jr.’s, Good Hot Fish, and Hell or High Water in Black Mountain.
As we reported recently, local hotels are themselves becoming a draw for tourists. Boutique hotels across the city have been earning Michelin Keys (the hotel equivalent of Michelin Stars for restaurants), Condé Nast Traveler’s 2025 Readers’ Choice Award nominations, and spots on Time’s “World’s 100 Greatest Places to Visit” list.
Public opinion of the issue varies, but it always seems like nothing can stop new development in our growing city. This spring, Buncombe County announced they have selected a development partner for a $74.5 million affordable housing project in downtown Asheville’s South Slope. More than 200 units will be created from converting county-owned buildings on Coxe Avenue. An additional 36 units have been proposed for South Asheville.
Overall, it has been rewarding to see our commercial and multi-family spaces continue to transform with the times and the market. We anticipate the Asheville MSA commercial market to continue to strengthen in the coming seasons.
Q2 2025 Commercial Sales Activity Review:
- 9 Industrial Transactions for $12.3 million
- 18 Office Transactions for $14.7 million
- 29 Retail Transactions for $32.5 million
- 4 Multi-family Transactions for $4.8 million
- 14 Land Transactions for $28.2 million
Q2 2025 Commercial Lease Activity Review:
- 18 Industrial Lease Transactions, Vacancy Rate of 3.0%
- 26 Office Lease Transactions, Vacancy Rate of 2.8%
- 28 Retail Lease Transactions, Vacancy Rate of 1.9%
All information represents 2025 data as provided by CoStar for the region.
About the Featured Listing
701 NC Hwy 9 in Black Mountain
MLS#: 4241668 | 3,800 SF | $1,950,000
Listed by: Mark Morris, CCIM
Come join Ingles, Wendys, Taco Bell, and multiple national retailers for this investment, use, or redevelopment opportunity assembled on two sites off Exit 64 at the I-26/Hwy 9 interchange in Black Mountain! Use or investment opportunities include a potential sale-leaseback, expanded restaurant, freestanding retail, hotel/retail center development, or myriad mixed-use concepts. A new roundabout intersection connecting Blue Ridge Road and the Ingles distribution warehouse is proposed in front of the site.
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.