GRAY, Tenn. – Last year was the year for multi-family sales in the Tri-Cities area. They replaced the office sector as the top area commercial real estate performer, according to the Northeast Tennessee Association of Realtors (NETAR).

NETAR’s December and the year-end report shows the commercial sector shook off its monthly doldrums and finished the year 55 transactions behind the previous year. Monthly transactions followed the residential sales market and began a slow decline that lasted until last month.

There were 153 multi-family sales from listing on NETAR’s Commercial Multiple Listing Service (CMLS) and the commercial portion of the Flex system. That was 12 fewer deals than closed in 2021, but unlike many other sectors, multi-family did not see as much of a decline in the latter months of last year.

December pending sales, new listings, and active multi-family inventory increased last month.

Although local apartment rents have not seen the decline that’s been recorded in major metro markets, the rental sector slowed in the fourth quarter. Landlords reported they are receiving fewer inquiries and waiting lists were not as prevalent as they were late last year and the first part of this year.

Rents have not declined because last year’s increases brought many of the region’s rent levels closer to market value.

Here’s how the rest of CMLS transaction leaderboard looked.

Vacant land – 2,064, down 299

Office – 103, down 2

Retail – 89, up two

Industrial – 31, down 20

Retail – 111, down 39

Hospitality – 4, down 1