Your Guide To The Supply and Demand, First Quarter
Winston Salem Commercial Real Estate
National economic uncertainty continues to persist, Greensboro/Winston-Salem continues to demonstrate resilience, achieving another quarter of employment growth. Adding 2,000 jobs to the nonfarm payroll total, contributing to a decrease in the unemployment rate. Standing at 3.7%—a 10 basis points decrease year-over-year.
However, forecasts hint at challenges ahead. Predicting that unemployment may revert to higher levels in the coming 12 months. The Federal Reserve’s decision to defer interest rate cuts due to lingering pressures, adds to the complexity of the economic landscape.
Supply and Demand Dynamics: Navigating Market Shifts
The Winston Salem Commercial Real Estate market is experiencing notable shifts in supply and demand dynamics. Leasing activity remains soft while vacancy rates increase.
The supply of vacant space expanded for the fourth consecutive quarter in Q1, with the overall vacancy rate climbing by 4.5%. This rise can be attributed to various factors, including the completion of two new spec construction projects totaling 521,410 square feet. Additionally, the market saw the addition of 870,500 sf of space previously occupied by Klaussner Furniture after its closure in 2023.
Q1 witnessed a net occupancy loss of 1.0 million square feet, trailing 12-month figure. However, it’s worth noting that excluding the space returned by large furniture companies, the market would have recorded annual net occupancy gains of 1.1 msf.
Vacant Space
Further increases in the supply of vacant space are expected in the coming year. Seven projects, totaling 2.3 msf of new product, are currently under construction and scheduled to deliver in 2024.
Despite challenges, there are pockets of activity within the market. Leasing activity in Q1 picked up, with 712,600 sf of new deals signed. Two submarkets saw the concentration of nearly half of the space demand. High Point/Thomasville (36.9%) and Kernersville (12.9%). While there was only one full-building lease larger than 100,000 sf signed during the quarter.
Commercial Property for Sale Winston Salem
Winston Salem NC industrial properties for sale and real estate market navigate through uncertain times with resilience. Despite challenges, the region continues to attract investment and showcase stability in its labor market. Moving forward, adaptability and strategic decision-making will be key in harnessing opportunities amidst economic shifts.