A defining trait of a good commercial appraiser is an awareness of and ability to interpret trends. We pay attention to the top growing cities, understanding that it all can change. A city that has certainly come into our radar is Nashville, Tennessee. There are many reasons why Nashville is worth investing in, but here are our favorite three.
Nashville Has a Wide Variety of Properties
Nashville attracts all kinds of people and companies and has everything from multi-billion dollar sky risers to apartment complexes. With this variety comes growth. As people are attracted to this great city, more properties are built, bought, and sold. This means builders, contractors, and appraisers are going to be delving into this hive of various properties.
Hub of Activity
Nashville is a prime area for commercial property for three reasons.
1. Location. It’s near the middle of the mid-west. This means it’s a great transportation and commercial hub. There’s a reason why the founding fathers tended to choose the capital in the middle of the state. It’s easier to travel to and from for everyone. This is why companies like to run out of big cities like Nashville. There’s easy access to highways and interstates that connect the country.
2. Increase in Demand. Growing cities increase their needs for goods and services. Just think, when your company does well, what happens? You hire more people, order more inventory, and export more goods or services. It’s an upward movement that cities like Nashville are experiencing. And when other people and companies see this happening, what do they do? They want in on the action! This means that the city grows more and more, transforming into a thriving hub of activity.
3. Good Investment. In an interview for the Emerging Trends in Real Estate 2016, an executive with a private equity investor explained, “In Nashville, we bought an office building for a 7.25 cap. We plan to redo the lobby, roll the leases to market, hold for four years, and then sell. Nashville is a strong secondary market with some risk, but the price was much more reasonable than core assets in primary markets.” Local respondents see an extremely strong local economy supported by plenty of investor demand and available capital—all factors that a strong local development community can put to good use. Furthermore, Nashville is an 18-hour city, with a vibrant downtown that is drawing residents and businesses to the core. Going forward, this trend will intensify because more capital is available than a few 24-hour markets can absorb.
Growing Commercial Sector
According to the Emerging Trends in Real Estate 2016, “2016 is the year of the secondary markets. They continue to be more attractive on a relative opportunity basis than some of the gateway cities. Gateway cities, we know, are places people want to be, but we are thinking of cities like Nashville, Charlotte, Indianapolis, Louisville, Portland, Austin, Raleigh, and Durham. These cities continue to attract lots of people. There are a lot of places that people love to live and work; they are manageable environments and have a better value proposition.”
The Nashville Area Chamber of Commerce is proud to state the variety of companies that have taken root in Nashville soil. Supply Chain Management such as Nissan North America, Electrolux Home Products, and Amazon. Advanced Manufacturing companies producing Bridgestone, General Mills/ Pillsbury, and Trane Company. Some corporate operations and headquarters located in Nashville are Community Health Systems, Verizon Wireless, Tractor Supply, and State Farm Insurance. With these large companies growing, so is the real estate, job market, and community.
Nashville is a growing city that deserves your attention. We at Russell Roberts Appraisals recently expanded into the Nashville area. If you are interested in our commercial real estate capabilities, check out our website.