Downtown Nashville Land Hits the Market
- Apr 27, 2017
With the assistance of Compass Auctions & Real Estate LLC, the State of Tennessee is auctioning two parcels totaling 2.1 acres in downtown Nashville, paving the way for a developer to capitalize on city’s ongoing upswing.
The offering consists of 450 James Robertson Parkway., an approximately 0.9-acre tract of land and the neighboring 1.2-acre parcel at 460 James Robertson Parkway. Zoned for a range of uses, the site could accommodate residential, office, retail or all the above.
“Downtown Nashville has become a place where families want to live and businesses want to operate,” Justin Ochs, vice president of national development with Compass Auctions & Real Estate, said in a prepared statement. “We’ve been amazed by the amount of national interest this premier location has already generated.”
What’s the attraction? The city’s economy is thriving. The employment market remains strong, as does income growth, which closed 2016 in the 7 percent range, according to a report by CBRE. The city’s affordability, quality of life and strategic positioning has resulted in a high level of downtown development activity over the last 10 years. Given the current state of the overall market, all signs point to the James Roadway site lending itself well to practically any use. Per CBRE’s research, apartment demand in Music City is increasing across all asset classes, resulting in a vacancy rate of just 4 percent. In the office sector, the vacancy rate is at a record low, asking rates are at a record high, and there’s no indication that the many new developments being planned will have a negative impact on the numbers. The retail market is faring well, too, buoyed by the strong economy, increasing personal income and a booming residential market.
Developers can’t get enough of Nashville. “The increasingly high-profile nature of the market is resulting in greater amounts of capital investing in the market,” according to the report. It’s still a secondary market, but it’s central business district is attracting tier-one projects, like the $430 million Fifth + Broadway mixed-use project downtown, which OliverMcMillan and Spectrum | Emery recently commenced.
“With the energy behind a thriving economy combined with a dynamic downtown, the long-term attractiveness of the market for investment and development is warranted,” per the CBRE report.