Nashville is one of the most unique cities in the United States. We are seeing an astronomical growth in pace for the city’s population and we’re having trouble constructing enough inventory to maintain this influx.
If you take a look at the numbers, you will see the clear shortage of inventory. In 2014, 95.5 percent on the city’s inventory was occupied, so there isn’t much breathing room for the amount of people flocking this direction. We are growing exponentially at 50,000 new residents each year and only 8,558 units were under construction on December 31, 2014. Needless to say the market’s growth is putting a constraint on options available.
Commercial office property has comparable data. This is not surprising considering everyone that is moving here is going to have to work somewhere. We are seeing this impact commercial office space searches and the methods tenant’s are using to find office space. As the market becomes tighter survey data shows businesses are searching anywhere they can (real estate listing sites, craigslist, broker websites, driving the market etc.) to try and find an office space, even when working in a relationship with a broker. This is no surprise, as the activity often can provide peace of mind to the business that they are more informed and have truly seen everything in the market. However, receiving guidance from an Advisor or Broker that is working to support your business interests is increasingly valuable. Businesses may be able to find some spaces on their own, but for a comprehensive market search and proper lease negotiation you should leverage a real estate brokerage to help.
Given the market conditions are so restricted, it is wise to consider looking for your space sooner rather than later. If you are coming up on a lease renewal or potentially need to relocate, you should start evaluating options as early as 3 - 6 months in advance of your lease expiration.
As you start your search look to online resources such as this - Nashville office space, but also make sure you are receiving service from a real estate advisor looking out for your best interests.