This morning I’m working on an appraisal of a multistory office building in the West End area of Nashville, Tennessee. One indispensable tool for evaluating the market for office buildings is to create a trend line using actual sales in the area. Here’s a trend line showing the per-square-foot price for office buildings in the Nashville area since 2010.
This blog post by JLL explains in more detail why the price for office space in the Music City is soaring.
In a word.
Jobs, especially good ones, attract people who demand services and who need places to live and work. The tourism industry in Nashville is also thriving, driving demand for hotel space in the Nashville market. It’s exciting to see growth resulting from excellent city planning in a progressive market with forward-thinking residents. For commercial appraisers, this optimism must also be tempered by a realistic view of basic economics. At some point, rental rates for office space there will no longer economically justify the cost of new construction.
In the meantime, I plan to take advantage of the many and varied dining establishments there. And I’m always up for suggestions. What’s your favorite place to eat in Nashville?