Asheville’s Opportunity Zone story is different from every other market in the Carolinas right now. Hurricane Helene hit Buncombe County in September 2024, and the recovery is reshaping where capital flows, what properties are worth, and which tracts will matter going forward. Several of Asheville’s OZ census tracts overlap with the hardest-hit areas — and that combination of federal OZ incentives plus disaster recovery funding is creating a unique moment for commercial property owners.
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Recovery Timeline Long: Helene recovery will take 3-5 years. That creates sustained construction employment and demand for industrial, flex, and staging space. -
OZ Designations Likely Survive: Helene-affected tracts that need rebuilding are exactly what the OZ program was designed to support. Redesignation under OZ 2.0 is likely, though not guaranteed. -
Post-Storm Pricing Window: Properties selling in the first 18 months post-Helene are priced at recovery cost, not recovered value. That pricing window is temporary. -
1031 Extensions Available: The IRS historically grants extensions to 1031 deadlines for properties in federally declared disaster areas. Check with your CPA on whether extended timelines apply.
Where Asheville’s OZ tracts are
Buncombe County’s OZ tracts concentrate in three areas. The River Arts District along the French Broad River has been Asheville’s most active redevelopment corridor for years. West Asheville, across the river from downtown, has OZ-designated tracts along Haywood Road and the surrounding neighborhoods. And the Swannanoa area east of the city — one of the hardest-hit areas during Helene — carries OZ designations that now overlap with federal disaster zones.
Post-Disaster Property Pricing Is Temporary — Act Sooner Rather Than Later
Properties in disaster areas are priced based on immediate recovery costs, not rebuilt value. That pricing advantage exists for 12-18 months post-event, until reconstruction proves successful and the market reprices upward. If you own commercial property in a Helene-affected OZ tract, selling in the next 12 months captures this unique window before buyers adjust their pricing to the longer-term recovery trajectory.
The River Arts District is probably the best-known OZ success story in western North Carolina. Former industrial buildings have been converted to mixed-use, artist studios, breweries, and commercial spaces. But Helene caused significant flood damage in this corridor, and rebuilding is creating a fresh wave of investment opportunity.
If you own industrial or flex property in these zones, your asset sits at the intersection of two powerful capital flows — OZ investment and disaster recovery.
Federal OZ benefits
| OZ Benefit | How It Works |
|---|---|
| Gains Deferral | Invest capital gains into a QOF, defer until Dec 31, 2026 |
| 10-Year Exclusion | Hold 10+ years, new appreciation is permanently tax-free |
| Basis Step-Up | After 10 years, basis adjusts to fair market value |
The 10-year exclusion is the headline benefit. For an investor deploying capital into Asheville’s rebuilding corridor, buying and holding commercial property for a decade means all the appreciation during the recovery and growth period is tax-free. That’s a powerful incentive, especially when the entry price reflects post-storm conditions but the 10-year outlook reflects a rebuilt, improved market.
Hurricane Helene and disaster recovery programs
Helene created a separate set of federal and state programs that overlap with OZ benefits. FEMA disaster declarations opened up SBA disaster loans, HUD CDBG-DR funding, and IRS tax relief provisions for affected property owners. North Carolina established its own disaster recovery programs specifically for Buncombe County and surrounding western NC counties.
For sellers, here’s what matters. Some of these programs provide buyers with additional capital sources — below-market loans, grant funding, and tax relief — that make acquisitions in Asheville more attractive. A buyer deploying OZ capital into a storm-affected area can potentially stack federal OZ benefits with disaster recovery incentives. That dual motivation means more buyer interest and stronger pricing for your property.
Our article on Asheville’s top employers and recovery covers how the local economy is rebuilding and which sectors are driving demand for commercial space.
OZ 2.0 and Asheville
Under the proposed OZ 2.0 framework, governors nominate new tracts by approximately October 2026, with new zones effective January 1, 2027. For Asheville, Helene may actually strengthen the case for redesignation. Storm-affected tracts that need rebuilding are exactly the kind of communities the OZ program was designed to support. But nothing is guaranteed. Selling while the current designations are active removes that uncertainty.
North Carolina’s tax incentives
North Carolina’s corporate income tax is 2.25% in 2025 and dropping to zero by 2030. That’s the lowest trajectory of any state in the country. The individual income tax rate is 4.25%, heading to 3.99% in 2026.
The JDIG program — Job Development Investment Grant — provides performance-based grants of up to 80% of state withholdings for up to 12 years. While Asheville’s economy is more tourism and healthcare than manufacturing, JDIG has supported hospitality and healthcare expansions in the region.
1031 exchanges in a disaster market
Look, 1031 exchanges work the same in Asheville as anywhere else. Sell, identify a replacement within 45 days, close within 180 days, defer 100% of gains. But there’s a wrinkle. The IRS has historically granted extensions to 1031 deadlines for properties in federally declared disaster areas. If you’re selling a storm-affected property and exchanging into another, check with your CPA on whether extended timelines apply.
The Asheville window
Asheville’s recovery is going to take years. But the capital flowing into the rebuilding — OZ investment, disaster recovery funds, insurance proceeds, state and federal grants — is creating buyer demand right now. Properties in OZ tracts near the River Arts District, West Asheville, and the Swannanoa corridor are sitting in the path of that capital.
Seller takeaway
If you own industrial or flex property in Asheville’s OZ tracts — River Arts District, West Asheville, Swannanoa — the convergence of federal OZ incentives and disaster recovery funding is creating buyer demand you won’t see anywhere else. But this window is temporary. Call Roth Capital at 704-600-3839 immediately to discuss whether your property sits at the intersection of these two capital flows.
If you’re considering selling commercial property in Asheville, I’d like to hear about it. Call me at 704-600-3839 or visit rothcapital.com.
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