By DON FENLEY

Commercial real estate transactions declined 4.6% in the first quarter of 2026 compared to the same period a year earlier. A pullback in land and industrial deals drove most of the softening.

Recorded transactions across all commercial categories totaled 355 in Q1 2026, down from 372 in Q1 2025, according to the Northeast Tennessee Association of Realtors (NETAR). March alone posted 120 transactions, an 8.4% decline from last year.

The transaction dip comes as the region’s commercial inventory is expanding. Active listings reached 666 in March, up 18.5% from a year earlier, while new listings totaled 99 for the month, a 5.3% increase. The rising supply alongside moderating deal volume points to a market that is taking longer to clear.

Land transactions, which consistently account for the largest share of the region’s commercial activity, slipped to 293 in the first quarter from 303 a year ago, a 3.3% decrease. In March, land deals fell to 93 from 104.

Industrial transactions also retreated, falling to six deals in Q1 2026 from nine in the year-earlier period, a 33% decline. March posted just one industrial transaction compared to three in March 2025.

Office activity edged lower for the quarter – 16 transactions versus 18 – though March bucked that trend with eight closings, one more than March 2025.

Retail was a bright spot. The category recorded 16 transactions in Q1 2026, up from 15 a year earlier, and March posted eight deals compared to five, a 60% monthly gain.

Multi-family transactions fell sharply, dropping to two for the quarter from four in Q1 2025, including just one closing in March versus four a year ago. Flex multi-family, the region’s second-most active category, held relatively steady at 21 Q1 transactions compared to 23 in 2025.

This report is a combination of human and AI analysis.

Categories: REAL ESTATE