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The demand for office space in Nashville has never been greater, but will the supply be able to meet it, not only in terms of quantity, but the kinds of cutting-edge space that tenants desire? Here are six quick facts about the market.
Nashville Needs More Office Space
Tennessee’s long-term employment projections for 2014 to 2024 show the state’s economy is projected to grow at an annual rate of 1.3% with total job openings each year of 112,880. Not all of those will be in metro Nashville, but many will. Tech, manufacturing and healthcare are the growth drivers.
Supply's Increasing, But...
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Developers, of course, aren't shy about trying to meet that demand: 2.8M SF of office space is under construction in the market. A large part of that is spec, but it isn't clear yet if it's enough to meet demand.
The Tightest Markets
Two submarkets in metro Nashville have practically no space available in Q1: Cool Springs, with 0.7% vacancy and Brentwood (1.2%). Mallory Park delivered 80k SF in Cool Springs in the first quarter, which will be home to Quorum Health Corp.
LEED Offices Not So Numerous
The highest LEED certification, Platinum, is still a little thin on the ground in Nashville. However, the NABRICO Building is one of the most highly rated LEED Core & Shell Platinum buildings anywhere, though it isn't an office building. Notable LEED properties with office components include The Gateway to Nashville (Gold) and The Gulch (Silver).
Walk Scores Are Low
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One of the amenities that attracts young workers and the companies that employ them is walkability. In this area, Nashville lags, though certain places are better than others. Overall, Nashville's Walk Score is 28/100. Its Transit Score is 23/100 and Bike Score is 33/100. It's definitely "car dependent."
Co-Working Space Is Well Established
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There's no way to quantify "creative office space," so favored by Millennials, though the idea is catching on here. So is co-working space, some of which appeals to emerging tech, and to creative firms (including InDo, pictured, for the music industry). Typical setups include a variety of space layouts, support services and events.
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