Just what is going down with Nashville’s commercial real estate market lately? All hell has broken loose it seems, with the real estate investment firm Beech Street Capital closing a $93 million to purchase a portfolio of multi-family homes - the most expensive deal in a week of multimillion dollar transactions and new starts.
Beech Street Capital’s purchase was quickly followed by the news that The Adler’s Fund had snapped up Greenbriar Business Park for a cool $12 million, while FelCor decided that now as a good time to sell off its investment in the 296-room Embassy Suites hotel by Nashville International Airport.
Also in Nashville, a number of companies made the news when they broke ground on some hugely expensive projects this past week. Holdings Inc., was one of them, announcing the commencement of work on its planned 20-storey West End Summit in Midtown Nashville, a class A office development. This project was quickly followed by the news that Ray Hensler, a Nashville developer, had just broken ground on a new $80 million, 23-storey condominium nearby.
Meanwhile, there was the news that P&M has just begun work on its long-planned $4million Nashville retail center, whilst 100 Oaks Mall managed to find itself a new owner.
So just what the hell is going on with Nashville right now?
A complete lack of office space is what’s up, according to local real estate experts. For the first time in a decade, available office space has shrunk into single digits, with just 9.8% of units vacant at the moment. Meanwhile, Nashville’s class A vacancies have sunk even lower - just 6.3% of buildings in this category lie empty.
Okay so it’s bad news for companies looking to set up shop in Nashville right now - whilst it’s not impossible to find somewhere, commercial rents are sure to be high. But nevertheless, the growth of Nashville’s commercial real estate market can only be a good thing - bringing with it more jobs and more opportunities for the city’s residents, meaning that everyone can look forward to a brighter future.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #2 RE/MAX team in the World!