Fayetteville Commercial Real Estate Market
Fayetteville's commercial real estate market is anchored by Fort Liberty, whose economic impact exceeds $30 billion annually and whose population — military and civilian combined — exceeds 100,000. This military presence creates a commercial demand profile unlike any other market in the Carolinas: consistent, recession-resistant, and driven by federal spending rather than private sector cycles. Retail, restaurant, and service properties near the Yadkin Road, Skibo Road, and All American Expressway corridors benefit from a customer base with stable incomes and predictable spending patterns.
Beyond the military, Fayetteville's economy includes Cape Fear Valley Health System — one of the largest healthcare systems in the Carolinas — Fayetteville State University, and a growing logistics sector leveraging the city's I-95 access and CSX rail connectivity. The industrial market along I-95 and the Fayetteville Regional Airport area serves both military-adjacent contractors and civilian distribution tenants. Medical office demand near Cape Fear Valley's campuses provides another stable asset class less directly tied to military spending cycles.
Fayetteville offers investors the highest cap rates in the I-95 corridor between Richmond and Jacksonville, typically 150 to 300 basis points above comparable Charlotte or Raleigh properties. This yield advantage, combined with military-driven demand stability, attracts income-focused investors seeking cash flow over appreciation. For sellers, the buyer profile skews toward experienced operators and small fund managers who understand military markets — a sophisticated audience that values clean financials and realistic pricing.
Top Property Types in Fayetteville
Retail & Service
Fort Liberty's 50,000+ soldiers and their families create massive demand for retail, restaurant, and personal service businesses along the base-adjacent corridors. Skibo Road, Yadkin Road, and the All American Expressway form the primary commercial arteries, with tenant demand that cycles with military deployment rotations but never disappears. Fast-casual dining, automotive services, fitness centers, and specialty retail serving military families maintain strong occupancy rates. Properties with national tenant credit achieve the tightest cap rates in this market.
Industrial & Warehouse
Cape Fear Valley Health System operates one of the largest hospital networks in the Carolinas, generating sustained demand for medical office, outpatient facilities, and specialty clinics throughout Fayetteville. The VA Medical Center adds federal healthcare demand. Properties along Owen Drive, the Village Drive medical corridor, and near Cape Fear Valley's campus benefit from physician referral networks that keep occupancy high. Multi-tenant medical buildings attract both military-market investors and national healthcare REITs.
Office & Medical
Fayetteville's position on I-95 — the East Coast's primary north-south freight corridor — combined with CSX rail access creates a logistics advantage for industrial properties. Military supply chain contractors, regional distribution operators, and manufacturing tenants serving both defense and civilian markets compete for warehouse space along I-95, Ramsey Street, and near the regional airport. Clear-height warehouse with dock-high loading and trailer parking is the most sought-after industrial format.
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Cap rates in Fayetteville are higher than other NC metros, reflecting military dependence. This creates attractive yields for income-focused investors.
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