Author: Hanna Jackson

2022 First Quarter Update


The Triad industrial market has experienced strong growth throughout the coronavirus pandemic, with 2021 resulting in historical highs in 12-month rent growth and net deliveries, while also experiencing five-year peaks in net absorption. Sales have also experienced similar growth, with highs in 12-month sales volume and historically low cap rates.

With 5.5± million square feet under construction at the time of this blog post, lower than average vacancy rates (5.35± %) appear to be organic in nature, as the market has not experienced significant supply-side strains on inventory. Leasing velocity has remained strong, with 12-month net absorption figures (2.7± million SF) easily surpassing the rolling 10-year historical average of 2.1± million square feet. As demand remains high, rent growth is expected to trend upwards, with some forecasts indicating a $0.50 per square foot YOY rent growth from Q4 of 2021 to Q4 of 2022.

Despite the current economic climate, investment in the Triad Industrial market has remained strong, with market cap rates hovering in the 6.25%-6.75% range. Market sale prices have hit an all-time high of roughly $95.00 per square foot, while 12-month sales volume figures ($423 million) have eclipsed the former historical peak of $401 Million with ease.

Various Industrial Lease Deals (last 12 months):
  • XPO Logistics - 639,800 SF at $4.35 NNN | 2203 Sherrill Drive, Statesville
  • Schnadig International Corporation - 263,500 at $4.95 NNN | 1818 Youngs Mill Road, Greensboro
  • JELD-Wen - 112,500 SF | 2061 Sherrill Drive, Statesville
  • Pine Gate Renewables - 105,000 SF at $3.25 MG | 74 W 32nd Street, Winston-Salem
  • South Atlantic Packaging Corporation -  103,821 SF at $3.75 MG | 315 Cassell Street, Winston-Salem
  • Plastiflex - 62,878 SF at $5.75 NNNdeal | Statesville
Various Industrial Sales (last 12 months):
  • 100 Enterprise Park Boulevard, Winston-Salem - 304,200 SF Distribution Center sold for $23.8 Million ($78.24 PSF)
  • 210 N Pendleton Street, High Point - 324,650 SF Manufacturing Facility sold for $16.03 million ($49.37 PSF)
  • 289 Business Park Drive, Winston-Salem - 125,000 SF Distribution Facility sold for $9.15 million ($73.20 PSF)
  • 2675 Annapolis Drive Winston-Salem - 115,500 SF Distribution Facility sold for $10.75 million ($93.07 PSF)
  • 295 Business Park Drive Winston-Salem - 316,000 SF Distribution Facility sold for $30.05 Million ($95.06 PSF)
  • 300 Penny Road, Greensboro - 1,546,000 SF Distribution Facility sold for $74 million ($47.84 PSF)
  • 386 Murdock Road, Troutman - 1,000,000 SF Distribution Facility sold for $69 million ($69 PSF)

*Above data comes from a Costar analysis of 295 Class A industrial properties.*

Click here to check out our industrial listings.


While demand in the Winston-Salem office market has remained lukewarm throughout the Coronavirus Pandemic, vacancy rates have stayed close to the 10-year historical average of 7.5%. Minimal construction in the last four quarters has placed little supply-side pressure on vacancy, and this trend is expected to continue into 2022. Winston-Salem’s office vacancies are expected to stay below Great Recession levels, however as office users continue to evaluate their space needs in wake of the pandemic, market fundamentals are expected to be further impacted into 2022.

Leasing velocity has remained low, with demand being heavily impacted over the last two years. While Winston-Salem closed 2020 with more than 95,000 SF of positive net absorption, an outflow of negative net absorption over the prior 12 months (-125k SF) has shown that there is little sign that the Winston-Salem office market will improve into 2022. With demand lagging behind other office markets in North Carolina, rent growth has also remained stagnant, hovering near the 10-year rolling average of 1.6% YOY growth.

Investment in Winston-Salem’s office sector has experienced similar trends as the leasing market. Market cap rates continue to remain near the 10-year rolling average of 8.5%, while 12-month sales volume ($51.2 Million) has lagged behind historical trends. Although investment has remained minimal in the last 12 months, market sale prices have seen a sharp uptick in comparison to historical norms, coming in around $150 per square foot.

Click here to check out our office listings.

Is your lease expiring in 2022?

With the advent of the New Year, it is time to start thinking about what this year might bring for your business. Don’t let your expiring lease sneak up on you without adequate time to conduct your due diligence. Use the steps below to help you assess your space needs in 2022!

1. Start early!

Whether you plan to renew or relocate, don’t wait until the last minute to explore your commercial real estate options. If your lease is expiring at any point during 2022, now is the time to initiate the process. Timing is an essential part of any renegotiation or relocation project!

2. Be prepared... hire a tenant rep!

Commercial real estate can be a tricky business. Hiring a tenant rep means you always have someone in your corner. Tenant reps assist tenants in analyzing their space requirements and commercial real estate objectives in order to formulate the ideal real estate solution for their business. With Commercial Realty Advisors’ tenant representation expertise and extensive market knowledge, we can assist in the renegotiation of existing leases or help with relocation projects.

One of the most valuable aspects of tenant representation is the time that it saves business owners. Clients can handle the day-to-day operations of their businesses, while the tenant rep broker is taking care of the time-consuming tasks such as researching properties and negotiating agreement terms.


3. Analyze your current situation... should you stay, or should you go?

Take a step back and look at your current space, does it fit your needs? Is your business expected to expand/contract in the next fiscal year? What does your business plan look like for the next few years, does your current space fit those plans? If your space works for your business, a tenant rep can assist you in renegotiating your lease terms to market rates. If you think that you have grown out of your existing space, a tenant rep can assist you in finding a more suitable home for your business. The benefit of renewing is that staying in your current space is usually cheaper and easier for your business due to avoiding the interruptions caused by moving.

However, if your space does not facilitate your goals for the upcoming year, then it’s time to move! Working with your tenant representative, you will discuss space needs, pricing, location, and current market trends. They will then research available properties, present you with a comprehensive list for you to review, assist you in identifying good fits for your business and schedule times to tour your top options.

Commercial Realty Advisors has been serving the Piedmont Triad of North Carolina since 2006. With SIOR, CCIM, ACIP and LEED certifications, our highly trained brokers have built a reputation of trust and excellence.
Contact us today so we can help you with your tenant representation needs!

Recent Transactions | Fall 2021

Commercial Realty Advisors is proud to have been able to represent our new and returning clients during these recent transactions. We provide expertise in a broad spectrum of services that covers all aspects of commercial real estate brokerage. With a team of eight licensed professionals, we act on behalf of companies, institutions, and individuals to acquire, sell, or lease commercial real estate.
Contact us for all your brokerage needs!

Sale Transactions

- 1918 Eastchester Rd, Hight Point, NC (Land)

1918 Eastchester Rd, Hight Point, NC

Jordan Reece, CCIM, Brad Klosterman and John Reece represented the seller of this 20-acre, prime development land featuring a large road frontage on Eastchester Drive in High Point, NC. in the property was rezoned from General Office to Office Institutional to accommodate a retail/office /residential mixed use opportunity. This property has excellent access to I-74 and Palladium Retail Area.

- 718 East Blvd, Williamston, NC (Retail)

Steve Vallos represented the seller of this former Walgreens store in the charming town of Williamston, NC, located northeast of Greenville, NC. This retail location will be a new store location for Walker NAPA Auto Parts.

- 190 Charlois Blvd, Winston-Salem, NC (Office)

190 Charlois Blvd, Winston-Salem, NC

Jeff Andrews, SIOR, and Steve Vallos represented the seller for this 12,000 SF office building located off Stratford Road in Winston-Salem, NC. This Class A office space will be the new home to the renowned Mitchell Prime Properties, a luxury North Carolina real estate firm. John-Mark M. Mitchell, Founder and CEO of Mitchell Prime Properties, has consistently been recognized for breaking real estate records throughout North Carolina. Mitchell Prime Properties is proud to be recognized as the first company to be featured on the cover of the duPont Registry.

- 5080 Harley Dr, Walkertown, NC (Retail)

Lease Transactions

370 & 380 Knollwood St, Winston-Salem, NC

- 370 Knollwood St, Suite 300, Winston-Salem, NC (Office)

Allen Tate Real Estate subleased space in this Class A office space to be the new home to one of their Winston-Salem offices.

- 370 Knollwood St, Suite 600, Winston-Salem, NC (Office)

Jeff Andrews, SIOR subleased this office space to local law firm, Waldrep Wall Babcock & Bailey PLLC. Waldrep Wall focuses on bankruptcy, commercial transactions, healthcare, commercial real estate, and litigation.

- 380 Knollwood St, Suite 450, Winston-Salem, NC (Office)

Steve Vallos and Kurt Birkins represented the tenant, Sono Bello, in this transaction. Sono Bello specializes in advanced, micro-laser technology, offering a variety of body contouring treatments. This is the first Sono Bello to open in the Piedmont Triad area and is conveniently located near Thruway Shopping Center, off of Salem Parkway.

- 1381 Old Mill Circle, Suite 300, Winston-Salem, NC (Office)

1381 Old Mill Circle, Winston-Salem, NC

CoreLife will open a new office in Winston-Salem's Consolidated Center, conveniently located off of Stratford Rd, near Interstate 40. CoreLife is a nationally recognized healthcare organization serving patients who want to get to a healthy weight to address medical conditions that keep them from living a full life.

- 1134 Burke St, Suite C, Winston-Salem, NC (Office)

Working with the Jacob Hauser, owner of Woodsman Studios, Brad Klosterman, AICP, LEED AP ND, was able to find a larger studio and office space for this full service content creation house. Woodsman Studios is nationally known for provided high quality video and photography services for commercial, corporate, documentary, cinema, and reality productions. This small operation has now grown to have production houses in many states throughout the east coast.

- 3086 Trenwest Dr, Suite 7, Winston-Salem, NC (Retail)

Senior Broker Brad Klosterman, AICP, LEED AP ND, helped owner, Megan Lambeth, of MegLo Cakes find the perfect spot to open her first store front for her small boutique bakery. After spending many years learning and honing in on her cake decorating craft at a local grocery store, Megan decided it was time to branch out and work on her own. Taking the extra time to get to know what Megan needed and wanted allowed for Brad to find the perfect spot for Megan.

- 3012 E 10th St, Greenville, NC (Retail)
- 418 S Stratford Rd, Winston-Salem, NC (Retail)
- 110 West Medical Park Dr, Lexington, NC (Medical)

Welcome new team member!

Commercial Realty Advisors is excited to welcome Hanna Jackson to the team!


Hanna joins Commercial Realty Advisors as the Marketing Communications Specialist after spending almost 5 years working for the Board of Cooperative Ministries of the Moravian Church. She was responsible for provincial communication, project development, and event planning. Her background also includes email marketing, website design, and marketing campaign development. Commercial Realty Advisors specializes in real estate brokerage, development, and property management. Hanna currently lives in Pfafftown with her husband, David, and son, Ford. She is an active member of Calvary Moravian Church, holding positions on many committees and boards.

We are excited to have Hanna on our team!

Welcome, Hanna