Allen Tate/Beverly-Hanks Q2 2024 Market Report

COMMERCIAL SALES ACTIVITY | QUARTER TWO 2024

7

13

23

4

12

INDUSTRIAL TRANSACTIONS

OFFICE TRANSACTIONS

RETAIL TRANSACTIONS

MULTI-FAMILY TRANSACTIONS

LAND TRANSACTIONS

FOR

FOR

FOR

FOR

FOR

$ 39.0M 2023: $23.9M

$ 24.5M 2023: $45.8M

$ 16.3M 2023: $15.2M

$ 28.3M 2023: $51.1M

$ 5.3M 2023: $82.7M

PROPERTIES SOLD

COMMERCIAL INSIGHTS The commercial real estate market in Asheville, North Carolina, is experiencing significant growth and transformation, particularly in the multi-family sector. The apartment pipeline in Asheville has reached new heights, with nearly 3,000 units currently under construction, according to CoStar data. This marks a substantial increase from the previous decade's average of 1,200 units annually, with the past four years seeing a 45% jump to an average of 1,700 units under construction. Central Asheville, including Downtown and West Asheville, has been the primary focus of new developments. The surge in construction activity is indicating a robust pipeline for the coming 6–12 months. This boom in apartment construction is driven by increased demand for housing in the Southeast since 2020, with Asheville benefiting from favorable demographic trends and population growth outpacing the national average. According to CoStar forecasts, more than 800 units are expected to be completed this year, with nearly 1,600 units slated for completion in 2025. A slowdown in is anticipated after 2025, which may lead to more stable market conditions. In the retail sector, Asheville continues to attract new businesses, including plant-based options. Romeo's Vegan Burgers, a popular vegan burger chain, is coming to Asheville and is set to open its third location at 640 Merrimon Avenue, Ste. 203, in Asheville. This addition will further diversify the city's culinary scene and cater to the growing demand for plant-based dining options. On a broader scale, the retail market has emerged as the top-performing asset class among the four leading property types, according to Marcus & Millichap's first- quarter analysis. Multi-tenant retail space absorption reached 1.4 million square feet in the first quarter, with positive absorption observed in more than half of the major markets across the nation. The industrial real estate sector, while experiencing robust demand driven by e-commerce growth and supply chain needs, faces challenges in keeping pace with development. Factors such as rising construction costs and limited warehouse space are contributing to the gap between supply and demand in this sector. While challenges exist, the overall outlook for commercial real estate remains optimistic, with Asheville's booming market serving as a microcosm of the broader industry's potential for growth and innovation.

37 10

BUNCOMBE

HAYWOOD

17

HENDERSON

0

MADISON

1

MITCHELL/YANCEY

1

POLK

5

RUTHERFORD

2

TRANSYLVANIA

TOTAL

73

38 Battery Park Avenue, Asheville, NC Featured Listing

$3,800,000 Discover a stunning three-level mixed-use property in the heart of Asheville's vibrant downtown Grove Arcade district. This 13,400 SF concrete and steel building offers versatile space with dual street-level access points. Ideally situated among the city's finest hotels, restaurants, and craft retailers, it's just steps away from the historic Grove Arcade, Cambria Hotel, public parking, and the federal building. Tenant mix includes two retail spaces on Battery Park Avenue, one retail space on Wall Street, a luxurious second- floor apartment overlooking Wall Street, and a third-floor conjoined live/work unit. This gem can easily be converted to single-use or maintained as a multi-use property.

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