Nashville is No. 6 on PricewaterhouseCoopers and ULI's 2017 Emerging Trends in Real Estate. The market moved up a notch from 2016, when it was No. 7. The list takes into account investment prospects as well as development potential. "Interest in this 18-hour market remains high again in 2017," the report notes.

The drivers: Nashville maintains its hip factor, and a high percentage of graduates from Nashville-area colleges and universities who choose to stay in the market after graduation. "The diverse economy is driven by healthcare, technology, tourism, and education. All of these sectors have been job creators during the economic recovery and are expected to continue to create jobs in 2017," according to the report.

The increased level of investor interest in Nashville increases the perceived liquidity of the market, which only makes it more attractive to non-local investors, the report says. There are issues, of course. For one thing, national developers could overbuild the market, especially in the industrial and multifamily sectors.

Austin topped ULI/PricewaterhouseCoopers' list.