Fayetteville has a flex space market that I think is seriously underappreciated. And the tenant mix here is different from what I see in Charlotte or the Triad. In those markets, flex tenants are mostly trades guys — HVAC contractors, electricians, plumbers. Fayetteville has those too, but there’s this whole other layer of demand that comes from the defense sector.
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Proximity to Fort Bragg and Defense Contractor Offices: Properties within 3-5 miles of base or defense contractor clusters command premium positioning. Distant locations must compete on general commercial appeal. -
Fiber Connectivity and Broadband Quality: Verify fiber availability or high-quality cable service. This is a fundamental requirement for premium defense tenants, not optional. -
Security Features (Parking, Access, Cameras): Defense tenants prefer controlled access and monitored environments. Buildings with professional security features attract premium tenants. -
Flex Configuration vs. Dedicated Office: Space configured for flexible leasing and mixed tenants appeals to smaller defense contractors and tech firms. Dedicated office space appeals differently.
The defense contractor angle
Fort Liberty doesn’t just employ soldiers. It supports a massive ecosystem of defense contractors, technology companies, and government services firms. Booz Allen Hamilton alone has 600-plus employees in the Fayetteville market. There are dozens of smaller firms doing everything from IT support to equipment maintenance to training and simulation.
What Supports Fayetteville Flex Value
- Proximity to Fort Bragg and defense contractor offices
- Fiber connectivity or high-speed broadband availability
- Security features (monitored access, cameras, controlled parking)
- Existing tenants in defense, tech, or small business sectors
What Creates Valuation Headwinds
- Distant location from Fort Bragg and defense contractor hubs
- Poor broadband or internet connectivity
- Generic commercial building without security features
- Dependent on general office or warehouse tenants (lower rents)
These companies need space that’s not pure office and not pure warehouse. They need a front section for admin, classified work areas, and back sections for equipment staging, repair, or storage. That’s flex space. And the demand is steady because the defense budget keeps flowing.
I bought a flex building off Sycamore Dairy Road that had two defense-adjacent tenants. A company doing vehicle upfitting for military contracts and a training simulation outfit. Both had been in the building for years. Both needed that combination of office and warehouse. Neither was going anywhere because their contracts were tied to the base. That’s about as stable a tenant base as you’ll find.
Small business demand
Beyond defense, Fayetteville’s small business economy drives a lot of flex demand. Contractors serving both military and civilian customers. E-commerce operators shipping from small warehouse bays. Small manufacturers. Medical equipment companies. The Cumberland County economy is diversified enough that flex buildings stay full.
| Flex Tenant Type | Typical Unit Size | Lease Length |
|---|---|---|
| Defense contractor / subcontractor | 3,000-10,000 SF | 3-5 years |
| HVAC / electrical / plumbing contractor | 1,500-3,000 SF | 2-3 years |
| E-commerce / fulfillment | 2,000-5,000 SF | 1-2 years |
| Small manufacturer | 3,000-8,000 SF | 3-5 years |
| Auto / vehicle service | 2,000-4,000 SF | 2-3 years |
Where the flex buildings are
Most of Fayetteville’s flex inventory sits in a few clusters. The Sycamore Dairy Road / Rim Road area has a good concentration. You’ll find some along Cliffdale Road. There’s product off Ramsey Street and in the business parks near the airport. And increasingly, along the new I-295 interchanges where developers are putting up new small-bay product.
The older stuff — built in the ’80s and ’90s — is what I tend to buy. Lower ceiling heights, basic finishes. But functional. And priced at a point where the yields work. A newer flex building might trade at $120-140/SF. The older stuff is more like $70-90/SF. The older buildings don’t look as nice, but the returns are often better.
Rents and what the market bears
Flex rents in Fayetteville run anywhere from $6-10/SF NNN depending on the building age, location, and unit size. Smaller units tend to command higher per-foot rents. A 1,500 SF contractor bay might go for $9-10/SF while a 5,000 SF unit in the same park might be $7-8/SF. That’s pretty standard across the Carolinas — smaller bites cost more per foot.
What I’m seeing is that rents have been climbing about 3-5% per year over the last few years. Vacancy in well-located flex parks is tight. When a unit opens up, it doesn’t stay open long. The trades guys in this market need space and there’s not a ton of new supply being built at the smaller end.
If you own flex in Fayetteville
Here’s my pitch. I buy flex buildings. I buy them with tenants, without tenants, in great shape, in rough shape. What matters is location, functionality, and whether the price makes sense for what I’m getting. I don’t need perfect. I need a building that works.
If you’ve been holding a flex property in the Fayetteville area and you’re thinking about selling, let’s talk. I can usually get you a number within a couple of days. No listing, no commission, no open houses. Just a straight conversation about value.
Seller takeaway
Fayetteville flex space owners should understand whether their building is positioned for premium defense contractors or commodity general tenants. That distinction changes valuation dramatically. Call Roth Capital at 704-600-3839 to discuss your property’s positioning and tenant strategy.
Pick up the phone when you’re ready. 704-600-3839.
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