The Nashville market has changed dramatically in the past decade. Cranes are a common addition to the skyline both downtown and in the suburbs. As the state capital of Tennessee, and the fourth largest city in the Southeast, Nashville has a current population of 1.8 million that is expected to increase by one million in the next 20 years. One of the most popular destinations for vacations and relocations, Nashville is quickly becoming more than just the country music capital.
The Nashville region is defined by a diverse economy, low costs of doing business and living, a creative culture and a well-educated population. Nashville benefits from a diversified economy in which not one of its industries generates over 20% of the employment base. Its pro-business environment has not only helped grow industry staples like healthcare, music, education, and transportation, but also has been a catalyst for corporate relocations to the MSA.
Nashville’s office market is one of the strongest in the U.S. and home to a highly diverse national, regional, and local tenant base that provides relative stability throughout the economic cycles. Currently, Nashville ranks among the lowest metropolitan vacancy rates throughout the nation and the lack of supply continues to drive rent growth. With continued strong demand and steady forecasted job growth in the region, the Nashville office market is positioned to remain a top performer nationwide.
While solid interest in Nashville retail reiterates the strength of the overall market, the inventory is extremely limited. As significant office and multi-family development occurs in the Gulch, CBD, Green Hills and Cool Springs, retailers are eager to take advantage of the new retail inventory that is available on the ground floor. In conjunction with the urban shift brought on by Nashville’s multi-residential construction boom, the urban infill trend is expected to proceed into the future and bolster infill retail development as amenities follow population growth.
Nashville is an ideal location for industrial, manufacturing, and distribution uses given its excellent transportation infrastructure and close proximity to major population centers in the eastern U.S. Highlighting this fact, Nashville is a one-day drive to 75% of the US population. Nashville is at the nexus of three major Interstate highways, Interstate 24, 40, and 65. Over 298 million tons of freight originate, terminate, or flow through the Nashville region on an annual basis. According to Nashville’s MPO, that number is expected to increase up to as much as 467 million by 2035.
While historically private capital has made up the majority of investment sale transactions in Nashville, more recently the market has seen some new players in the form of cross border capital. Institutional players, including pension funds, REITs, and private funds, dominate the landscape thanks to Nashville’s trajectory as a rapidly growing, high-end secondary market.
The Avison Young Nashville office is a full-service commercial real estate firm specializing in office, retail and industrial brokerage, property management, valuation services, as well as investment sales. With over 61 employees in the office, 28 are active in brokerage. Avison Young launched its first Tennessee office in Nashville in September 2015, reaching another milestone in the company’s strategic U.S. expansion program. Together with the firm’s Knoxville and Memphis offices, the Nashville location gives Avison Young a strong Tennessee presence and a foothold in the Southeastern U.S. With an intimate knowledge of the entire Tennessee market, the Avison Young Nashville office is widely recognized as prestigious, best-in-class commercial real estate services firm with outstanding reputations for superior service, performance, execution and delivery.