When national real estate market trends are published it’s easy to get lost in the numbers. Vacancies are down. Rents are up. But what does this mean on a more granular level? To analyze these numbers in a qualitative way, the savvy commercial real estate investor should also put faces to the numbers so to speak, by researching what’s going on in individual real estate markets throughout the country.
Today we’ll take a look at Nashville’s booming commercial real estate market for a bit of local context which can help explain national trends. The Tennessean Online recently published an article discussing the continued strength of Nashville’s real estate market in 2014.
After two quarters, the vacancy rate for Nashville’s industrial and office space was down to an almost seven year low. Coming in at just 9.8%, more office spaces are being leased than any point since the second half of 2007.
Not only are businesses new and old signing leases at a higher rate, there is a renewed investor interest in Nashville’s commercial market.
As far as specific highlights, Fifth Third Center was sold to Lincoln Property Company out of Dallas for $90 million, while Fourth & Church went for just under $34 million to property company, Albany Road. The fact that large scale deals with management companies as well as individual leases with companies continue to be strong are both signals that the market will remain strong throughout the year and beyond.
Chris Gear, a partner at Colliers believes that this increased growth will lead to new office construction and rising rent sooner rather than later.
If you are a real estate investor looking to expand out of your market, Nashville, Tennessee might be worth a second look.
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