Market Overview
Johnston County has been one of the top population-growth counties in North Carolina for more than a decade. The county's population has grown past 220,000 residents, with projections pointing toward continued acceleration as Triangle-area housing costs push families and employers southward and eastward. The dynamic here is straightforward: Wake County's cost of living — particularly residential real estate — has priced out a significant share of the workforce, and Johnston County has absorbed that demand with more affordable housing, lower property taxes, and commutable proximity to Raleigh, Durham, and Research Triangle Park.
Clayton is the county's growth engine. What was a small town of roughly 6,000 residents in the year 2000 has expanded to a community approaching 25,000, with the surrounding census-designated areas pushing the effective population considerably higher. Clayton's downtown has undergone a genuine revival, and the US-70 corridor through town has become a major commercial spine attracting national retailers, restaurants, and service operators following the rooftops. New residential subdivisions continue to break ground in every direction, and the commercial follow-on development that accompanies those rooftops is creating a pipeline of leasing and investment opportunities across property types.
Smithfield, the county seat, anchors the western portion of Johnston County and sits at the critical junction of Interstate 40 and Interstate 95 — the only place these two major freight and travel corridors intersect in North Carolina. That interchange has shaped Smithfield's commercial identity for decades, drawing outlet retail, hospitality, logistics operations, and highway-oriented businesses that capitalize on the traffic volume. Johnston Health, part of the UNC Health system, operates its main campus in Smithfield and serves as a significant employer and economic anchor for the county.
Selma, immediately adjacent to Smithfield, has its own historic downtown and a growing base of small businesses, while Four Oaks and Benson serve the county's southern agricultural communities. Zebulon sits at the northern edge of Johnston County, straddling the Wake-Johnston county line, and benefits from its proximity to Wendell and Knightdale in Wake County. Though smaller in population, Zebulon has seen notable residential development activity and a corresponding uptick in commercial interest along the NC-96 and US-64 corridors.
The economic base in Johnston County has diversified substantially over the past two decades. The Caterpillar manufacturing plant near Clayton is one of the county's largest private employers, producing hydraulic excavators for the North American market. A pharmaceutical and biotech corridor has emerged along the I-40 and US-70 corridors, with contract manufacturing, packaging, and distribution operations serving the life sciences industry. Agriculture remains a factor — Johnston County is one of the top agricultural producers in North Carolina — but the economic center of gravity has shifted decisively toward manufacturing, logistics, healthcare, and the residential-driven service economy.
Property Types in Johnston County
Retail development in Johnston County is following rooftops at a pace that has accelerated sharply over the past five years. Clayton's US-70 corridor has attracted the bulk of new retail construction, with grocery-anchored centers, quick-service restaurant pads, and convenience-oriented strip centers filling in along the commercial spine. National tenants that typically locate in suburban Wake County markets are now making their first moves into Clayton and Smithfield, recognizing the population density and household income levels that support their unit economics. The Smithfield outlet corridor along I-95 continues to draw destination retail traffic, and infill retail opportunities exist in several of the county's smaller towns where population growth has outpaced the existing commercial inventory.
Industrial and logistics properties represent one of Johnston County's strongest commercial real estate segments. The I-40/I-95 interchange at Smithfield-Selma is a logistics node with genuine regional significance, providing access to the Port of Wilmington, the Port of Morehead City, and distribution routes serving the eastern seaboard from Virginia to Florida. Warehouse and distribution space along this corridor has seen steady absorption, and several new speculative industrial developments have broken ground to meet demand from e-commerce fulfillment, food and beverage distribution, and building materials companies. The US-70 corridor between Clayton and Smithfield also supports industrial users, with a mix of flex space, light manufacturing, and contractor yards.
Office demand in Johnston County is driven primarily by healthcare providers, professional services firms, and government agencies. Johnston Health's expansion and the growth of satellite medical office locations along the US-70 corridor have created a distinct medical office submarket. General office demand tends to concentrate in Clayton's downtown and along the commercial corridors, where attorneys, insurance agencies, financial advisors, and accounting firms serve the county's growing population. As remote work patterns have stabilized, Johnston County has also attracted small businesses and independent professionals who prefer a lower-cost office location within commuting distance of Raleigh.
Multi-family development has surged in response to the county's population growth. Clayton, in particular, has seen multiple apartment and townhome communities delivered or under construction in recent years. Demand is driven by workers at the Caterpillar plant and other manufacturing operations, young professionals commuting to Raleigh, and families who are renting while shopping for homes in the area's new subdivisions. Occupancy rates for well-located multi-family properties in Johnston County have remained strong, and rental rates have been climbing as demand continues to outpace supply in several submarkets.
Land and development sites are a defining characteristic of the Johnston County market. Unlike more built-out suburban counties in the Triangle, Johnston County still has significant tracts of developable land with access to utilities and road infrastructure. Residential developers are actively acquiring parcels along the county's growth corridors, and commercial developers are following close behind, assembling sites for retail centers, industrial parks, and mixed-use projects. For investors with a development horizon, Johnston County offers entry points that are materially below comparable parcels in Wake County, with demographic tailwinds that support near-term absorption.
Why Invest in Johnston County Commercial Real Estate
The investment case for Johnston County begins with a growth rate that has consistently outpaced the state average. The county has added residents at a pace that places it among the top five or six fastest-growing counties in North Carolina in multiple recent census and estimate periods. That growth is not speculative — it is driven by the observable migration of households from higher-cost Wake County and by employers who are choosing Johnston County for new facilities and expansions based on lower operating costs, available land, and access to a growing labor force.
Tax advantage is a concrete differentiator. Johnston County's property tax rate has historically been lower than Wake County's, and the county has used that gap as a recruitment tool for both residential development and commercial investment. For commercial property owners, a lower tax burden translates directly to improved net operating income and stronger returns, all else being equal. The county has balanced this lower rate against a growing tax base, maintaining the fiscal capacity to invest in infrastructure and services that support continued growth.
The I-40 and I-95 junction at Smithfield creates a transportation advantage that is difficult to replicate. Interstate 95 is the primary north-south freight corridor on the eastern seaboard, and Interstate 40 connects the Triangle region to Wilmington's port and the eastern North Carolina coast. Businesses that need to move goods — whether inbound materials or outbound product — benefit from the ability to access both corridors without the congestion and higher costs of operating inside the Raleigh beltline. This logistics advantage has driven industrial development in the Smithfield-Selma area and is likely to continue attracting distribution and warehousing tenants.
New construction opportunity is another draw. Because Johnston County is still in an active growth phase, investors and owner-occupants can pursue build-to-suit and ground-up development projects with a level of flexibility that is increasingly difficult to find in Wake County's more constrained submarkets. Pad sites for retail, parcels for light industrial, and tracts for multi-family are available at price points that make new construction pencil against projected rents — a dynamic that has become rare in the more mature Triangle markets.
The county's growth is also creating a virtuous cycle. As population increases, commercial services follow. As commercial services expand, employment grows. As employment grows, more residents move in. This cycle is visible in real time along the US-70 corridor in Clayton, where each new residential development generates demand for the grocery stores, medical offices, restaurants, and service businesses that follow. For commercial real estate investors, the opportunity is to acquire or develop assets that are positioned to capture this follow-on demand before the market fully adjusts.
Key Areas & Corridors
US-70 Corridor through Clayton is the county's most active commercial corridor. This stretch runs from the Wake-Johnston county line east through Clayton and toward Smithfield, carrying heavy commuter and commercial traffic. National retailers, quick-service restaurants, auto service operators, and medical offices have clustered along US-70 in Clayton, and the corridor continues to attract new development as the surrounding residential base grows. Vacancy along this corridor has been tight, and well-positioned pad sites command a premium.
Downtown Clayton has emerged as a legitimate mixed-use submarket. The town's investment in streetscape improvements, a new municipal center, and public gathering spaces has attracted restaurants, breweries, specialty retail, and professional office tenants. Several adaptive reuse projects have converted older commercial buildings into restaurant and retail spaces, and new construction along Main Street has added modern inventory. Downtown Clayton's walkability and growing event calendar have created a foot-traffic dynamic that supports ground-floor retail and dining tenants.
I-40/I-95 Interchange at Smithfield-Selma remains the county's logistics hub. This interchange anchors a cluster of hotel, restaurant, and service properties that serve highway travelers, alongside a growing base of industrial and distribution tenants that need direct interstate access. The Carolina Premium Outlets draw destination shoppers from across eastern North Carolina, and the surrounding commercial area supports a mix of fuel stations, quick-service restaurants, and travel-oriented businesses. For industrial investors, the parcels with direct I-40 or I-95 frontage in this area are among the most strategically valuable in the county.
Smithfield itself, beyond the interchange, maintains a historic downtown with a growing mix of locally-owned retail and restaurant tenants. Johnston County government operations are headquartered here, and Johnston Health's main campus anchors the local medical economy. The Ava Gardner Museum and the town's heritage tourism positioning have attracted visitors and niche retail operators to the downtown core. Commercial opportunities in Smithfield tend to offer lower entry points than Clayton while benefiting from many of the same macro tailwinds.
Zebulon and the NC-96/US-64 Corridors form the northern gateway to Johnston County. Zebulon's proximity to Wendell and Knightdale in Wake County gives it access to the suburban growth dynamics of the eastern Triangle, and the town has seen residential development activity increase significantly in recent years. Commercial development along NC-96 has followed, with convenience retail, restaurants, and professional services establishing locations to serve the expanding population. US-64 connects Zebulon eastward toward Wilson and westward toward Raleigh, providing a secondary commercial corridor with development potential.
Four Oaks and the Southern Johnston County Corridor offer a different profile. Four Oaks sits along I-95 south of Smithfield and serves as a service center for the county's agricultural communities. While growth here is more measured than in Clayton or Zebulon, the I-95 access and lower land costs create opportunities for industrial users, contractor yards, and agricultural support businesses. Investors looking for higher-yield plays with lower entry costs often find value in southern Johnston County properties that benefit from the county-wide growth trajectory without competing against the higher pricing that has developed in Clayton.
Benson, at the southern end of the county, straddles the Johnston-Harnett county line and maintains a small-town commercial core with a loyal local customer base. Benson's downtown revitalization efforts and its annual Mule Days festival draw visitors, and the town's I-40 access makes it a practical location for small distribution and manufacturing operations.
Transportation & Accessibility
Johnston County's transportation infrastructure is one of its defining competitive advantages. Interstate 40 traverses the county east to west, connecting the Triangle region to Wilmington and the coast. Interstate 95 runs north to south through the western portion of the county, linking Johnston County to markets from Miami to New England. The convergence of these two interstates at Smithfield-Selma creates a transportation node that few North Carolina counties outside of the major metros can match.
US-70, the primary east-west commercial corridor, connects Raleigh to Clayton, Smithfield, and the eastern North Carolina markets beyond. This route carries substantial commuter traffic and has been the subject of ongoing widening and improvement projects aimed at accommodating the county's growth. US-301 provides an additional north-south route through the county's eastern communities.
Raleigh-Durham International Airport is approximately 30 to 40 minutes from Clayton by car, depending on traffic conditions. This proximity gives Johnston County businesses and investors access to a major commercial airport with nonstop service to dozens of domestic and international destinations, a practical advantage for companies that require frequent business travel or that ship time-sensitive goods by air.
The county's road network also benefits from its position at the edge of the Triangle's urban core. While commuters heading into downtown Raleigh during peak hours encounter the congestion that comes with any growing metro, the reverse-commute dynamic works in Johnston County's favor for businesses that draw employees from the Raleigh area. Workers heading south and east on US-70 or I-40 during morning rush experience meaningfully lighter traffic than those heading into the city, making Johnston County an attractive location for employers competing for labor in a tight market.
Tenant Representation in Johnston County
For businesses expanding into Johnston County or relocating from higher-cost markets in the Triangle, tenant representation provides a critical advantage. The county's rapid growth means the commercial landscape is changing fast — properties that were not viable two years ago may now sit in the middle of an active growth corridor, and landlords who once struggled to fill space are now in a position to command higher rents and more favorable lease structures. Having an advisor who tracks these shifts in real time ensures that tenants negotiate from a position of knowledge rather than assumption.
I help tenants evaluate the full range of available space in Johnston County, from second-generation retail suites along US-70 to ground-up build-to-suit opportunities on undeveloped parcels. For medical practices, the site selection process in a growth market like Clayton involves analyzing patient drive times, visibility from major corridors, and co-tenancy with complementary healthcare providers. For retailers, the question is often which part of the growth curve a particular corridor is on — and whether the rent being asked today reflects where the market is heading or where it has been.
Lease negotiation in a growth market also requires attention to terms that protect the tenant's long-term position. Renewal options, expansion rights, exclusive use clauses, and tenant improvement allowance structures all carry more weight when a market is appreciating rapidly. I negotiate these provisions with the understanding that a lease signed today in Johnston County will play out against a backdrop of continued population and commercial growth, and the terms need to account for that trajectory.
Investment Sales & Dispositions
Johnston County's growth profile makes it an increasingly compelling market for commercial real estate investment. I advise buyers and sellers on transactions across the county, from stabilized retail centers along the US-70 corridor to value-add industrial properties near the I-40/I-95 interchange to development parcels positioned in the path of growth.
For buyers, I provide market-grounded underwriting support that accounts for Johnston County's specific dynamics — the population growth rates, the traffic patterns, the planned infrastructure improvements, and the competitive supply pipeline. Generic pro formas built on statewide or national assumptions miss the nuances of a market that is growing this quickly, and my local knowledge helps investors distinguish between properties that are fairly priced and those that have already been bid up beyond what the fundamentals support.
For sellers, I bring a marketing approach that connects Johnston County assets to the buyer pools most likely to pay market value or better. Local owner-operators, Triangle-based investors expanding their footprint south, and out-of-state capital seeking growth-market exposure all represent viable buyer categories for different property types and price points. I leverage national listing platforms including LoopNet and CREXi alongside targeted outreach to ensure that every qualified buyer has the opportunity to evaluate the opportunity.
Working with Sebastian in Johnston County
Johnston County is a market I follow closely because the growth trajectory here is creating commercial real estate opportunities that reward informed positioning. The county's demographics, transportation assets, and cost advantages relative to Wake County make it one of the most compelling growth stories in eastern North Carolina, and the commercial real estate market is responding accordingly.
Whether you are a business owner evaluating commercial space in Clayton, an investor underwriting a multi-family acquisition near Smithfield, or a developer assembling land along one of the county's growth corridors, I provide the local market knowledge, analytical rigor, and transactional experience to help you execute with confidence. As a CCIM candidate working through Mullarkey Real Estate Group, Inc., I bring both the institutional framework and the on-the-ground relationships that matter in a market where the best opportunities often move quickly.
I also work with out-of-state investors who have identified the Triangle's growth spillover into Johnston County as a compelling investment thesis but need local expertise to evaluate specific assets and corridors. From identifying off-market opportunities and coordinating inspections to connecting you with property managers and contractors who understand the local market, I serve as your direct line into a county that is growing too fast for desktop underwriting alone.
If you are considering a commercial real estate transaction anywhere in Johnston County, I am ready to help. Call me at (919) 797-5900, email sebastian@mullarkeycre.com, or book a call online to get the conversation started.