Note From James In the 200 days since Hurricane Helene, it seems like I've been asked a different version of the same question nearly every day: “How has this affected Asheville's commercial market?” While the answer's more complex than a single newsletter can cover, six months after the storm, some data is beginning to emerge. Using data collected from CoStar Group (which is not always perfect and requires some nuance to interpret), I looked at sales and leasing activity from the Fourth Quarter of 2024 (October–December of last year), and compared it to our most recent First Quarter of 2025 (January-March).  The results show a market that surged in the immediate aftermath of the storm, followed by a more measured return to our ongoing recovery. Across the office, retail, industrial, and flex sectors of Buncombe County, I found: The total number of transactions is down 13.5% (32 transactions in Q1 vs. 37 in Q4) Total dollar volumes are down 20% ($42.7M vs. $53.7M) By sector, the Q424-Q125 sales trends show: Office: Dollar volume down 24%, number of transactions unchanged Industrial: Up across the board, with 6 sales this quarter vs. 3 in Q4 Retail: Volume down 48%, transactions down 37% Flex: Volume down 40%, transactions unchanged When it comes to prices, the numbers seem mostly aligned between the pre-Helene and post-Helene markets. If adjustments are happening due to the storm or other economic factors, it's too early to tell.   On the leasing side, there appears to have been a drop in the first part of 2025 as well. For the first three months of the year, the total square footage of leased space fell from 553,634 SF in Q4 to 270,336 SF in Q1 - a 51% decline.  While it's not specifically communicated, I would bet that the large amount of leasing that happened in late 2024 is a reflection of the urgent reshuffling of displaced tenants who were suddenly forced to relocate, and now the market has settled. When it comes to additional leasing metrics, most are down across every sector this quarter - square footage, average rents, and the overall number of deals. The only exception is retail, which held steady with 25 transactions in both quarters. So, back to the original question: “How has this affected the commercial market?” Six months in, the fog is beginning to lift in Buncombe County. I think we're seeing a market that isn't frozen, but recalibrating to a pace more aligned with its old self.  The post-flood hyperdrive has dissipated, and a steadier path forward is coming into sight. I look forward to looking at our year-over-year metrics about a year from now.  We can make predictions, but hopefully, some pleasant surprises show a recovered market that's in full swing, back on its familiar trajectory of growth and progress. Sincerely,