Nashville, TN - Office Market Overview
The Nashville Metropolitan Area includes the Century City, Elm Hills Acres, and Metrocenter - North Rhodes Park office space submarkets. With a metropolitan population of over 1.8 million people, the economy in Nashville is driven by a diverse mix of business, including the tourism, healthcare, and education sectors, all doing their part to create a dynamic demand for Class A office space in Nashville, Tenn.
As of mid-2017, the Greater Nashville office market encompasses nearly 28 million square feet of existing office space in properties larger than 50,000 square feet. Nicknamed “Music City U.S.A.,” Nashville is the capital of Tennessee and also the state's largest city.
Nashville, TN - Office Inventory Description
Nashville has earned its nickname thanks to being the center of the Country music industry. Along with the music & entertainment industry, the demand for commercial real estate in Nashville is also driven by healthcare and corporate head office users.
With a gross metropolitan product of nearly $103 billion annually, there is consistent, predictable demand for white-collar office space in the Nashville metropolitan area. About 47% of the office inventory in the city is Class A or A+, while Class B office product in Nashville adds another 50% of space to the market.
Demand for Class A office space is strong in Downtown Nashville, located just east of 8th Avenue South and west of the Cumberland River. Prime office buildings such as the L & C Tower on Church Street, The Baker Donelson Center, and the SunTrust Plaza at 401 Commerce Street are all in this office submarket.
Nashville, TN Commercial Inventory Breakdown
Total: 43,567,414 SF
By square footage range:
- 50k to 100k SF: 7,135,325 SF / 16.38% of total office
- 100k to 500k SF: 26,924,633 SF / 61.8% of total office
- 500k to 1M SF: 8,507,456 SF / 19.53% of total office
- > 1M SF: 1,000,000 SF / 2.3% of total office
- Class A+: 2,975,759 SF / 6.83% of total office
- Class A: 16,257,300 SF / 37.32% of total office
- Class B: 16,721,213 SF / 38.38% of total office
- Class C: 1,269,065 SF / 2.91% of total office
Nashville, TN - Green Office Space
One of the best examples of green office space in Nashville is the LEED-certified Gulch Crossing office building on Demonbreun Street. Built in 2015, this nearly 240,000-square-foot Class A property is located in The Gulch neighborhood and is the proud recipient of the coveted LEED Gold certification.
The most recent National Green Building Adoption Index took a look at energy-efficient office buildings in the top 30 U.S. markets in 2017. The survey discovered that the percentage of LEED-certified and Energy Star-rated construction for office buildings has increased from less than 5% in 2005 to 38% by mid-2017.
While Nashville didn’t make the top 30, the city is definitely moving in the right direction, with Gulch Crossing as a fine example.
Nashville, TN's Top Office-Using Sectors
The demand for Nashville commercial real estate and Class A office space is created by a variety of business and industry in the city. Top office-using sectors in Nashville include the healthcare, music & entertainment, government, and Fortune 500 office segments.
- Healthcare – This sector is one of the top creators of white-collar office employment in Nashville, with companies such as Hospital Corporation of America employing over 200,000 people in the metro area.
- Music & Entertainment – Nashville is headquarters to world-famous guitar maker Gibson, and is home to numerous independent record label companies, with Universal Music Group, Sony Music Entertainment, EMI, and Warner Music Group all having offices in Nashville.
- Government – The Nashville City government and Public School District, the State of Tennessee, and the U.S. Government are all top employers in Nashville.
- Fortune 500 Offices –for Class A office space in Nashville is also driven by the numerous corporate office locations within the city, including Bridgestone, Community Health Systems, Dell, Nissan North America, and Tractor Supply Company.
- Total Population450,722
- Male Population(48.2 %) 217,299
- Female Population(51.8 %) 233,424
- Median Age33.00
- Average Household Income$83,045
- Median Household Income$51,998
- Median Income Under 25$30,310
- Median Income 25-44$62,418
- Median Income 45-64$52,555
- Median Income Over 65$41,950
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