Land sales are driving Tri-Cities commercial real estate transactions.

The February data suggests that the local commercial market continues to be shaped by development-related land purchases, repurposing existing properties, and smaller property investments.

A total of 123 CRE transactions were recorded in February 2026, up from 112 in February 2025, according to the Northeast Tennessee Association of Realtors (NETAR). The benchmark many locals are watching is pre-pandemic level, and the region isn’t there yet.

 “While the market has not yet returned to its pre-pandemic transaction levels, February’s gains indicate steady commercial activity supported primarily by land development and smaller investment properties across the region,” NETAR President Amy Mitchell said. The pattern reflects ongoing population growth, residential development, and the region’s relatively small-metro investment landscape.

Year-to-date totals show the market running close to last year’s pace. Through the first two months of the year, the region recorded 235 CRE transactions, compared with 241 during the same period in 2025. The pre-pandemic January-February level is 269 transactions.

Last month’s 105 land sales accounted for roughly 85% of all commercial transactions. That was 14 more than a year ago. The pre-pandemic benchmark is 121 transactions. More than half (56%) of last month’s land sales were for less than $100,000.

Retail transactions posted modest growth last month. Five deals closed, up from three a year earlier.

Office activity was moderate. Four office transactions closed in February, down slightly from six a year earlier. This is one sector that improved from the pre-pandemic level of two transactions.

Industrial property sales remained limited. Three deals closed in February, compared with five in February 2025 and five in February 2019.

There were six multi-family transactions, nearly unchanged from seven a year ago and matching the six transactions recorded in February 2019.