Q1 2026 Market Reports
Industrial
The Triad industrial market remains highly active. Following a surge of transactions closing out Q4 2025, activity pivoted slightly at the start of Q1 2026.
Fundamentals across all segments remain solid. Notably, leasing velocity has accelerated in the small-bay segment, with strong demand for spaces ranging from 20,000 to 150,000 square feet as tenants seek right-sized solutions in strategic locations. Second-generation products have also seen increased traction, driven by tenants prioritizing more competitive lease rates.
Tariff policy continues to influence decision-making, with several offshore manufacturers exploring U.S. locations to mitigate cost pressures and strengthen supply chain resilience. Geopolitical factors have also impacted the market. The ongoing conflict in Iran has contributed to a sharp rise in global oil prices, driving higher transportation costs and, in turn, placing upward pressure on consumer goods and services.
On the development side, merchant builders have re-entered the market, with new speculative projects underway across multiple Triad submarkets. This renewed activity reflects growing confidence in the region’s ability to absorb Class A industrial space as the
market continues to progress through Q2 2026 and into the balance of the year.
READ FULL INDUSTRIAL REPORT HERE
Office
The office market in the Piedmont Triad is in a period of adjustment driven by evolving workplace strategies. Vacancy remains elevated compared to historical norms, particularly in certain downtown submarkets, as many occupiers reassess their space needs. A growing number of groups are focused on rightsizing their footprints, seeking smaller, more efficient layouts that better align with hybrid work models. This shift has created a highly competitive environment, forcing landlords to compete more aggressively through concessions, flexible terms, and capital improvements to attract and retain tenants. While leasing activity has picked up modestly, the market remains firmly tenant-favored and will
likely continue to see gradual stabilization rather than a rapid recovery.
Retail
The commercial real estate market across the Southeast is entering a period of measured growth as 2026 progresses, with the Triad emerging as a resilient secondary market. Supported by regional population growth and easing borrowing costs, retail fundamentals
in Greensboro, Winston-Salem, and Burlington remain strong, characterized by vacancy rates in the mid-to-high single digits. Leasing activity is largely driven by service-oriented and necessity-based tenants—such as medical retail, fitness, and quick-service restaurants—which continue to backfill second-generation space.
High-traffic corridors like Greensboro’s Friendly Center and Winston-Salem’s Hanes Mall Boulevard are seeing modest rent growth, particularly for shop spaces under 3,000 square feet. While new development remains limited due to elevated construction costs, this supply constraint has bolstered the performance of existing assets. On the investment front, transaction activity is accelerating as buyer-seller expectations align, with cap rates for stabilized centers settling between 6.75% and 7.75%. Private investors and 1031 exchange buyers remain the primary drivers of the market, targeting well-located centers with sustainable upside.
Ultimately, the Triad offers a stable, constructive trajectory for the remainder of the year, defined by asset quality and a tenant mix that reflects evolving consumer preferences.