STG Design’s Dan Tansey On The Future Of Nashville At Bisnow’s Feb. 2 Event
Ranked one of the fastest-growing cities in the United States, Nashville is witnessing unprecedented growth in various CRE sectors, including multifamily and mixed-use developments.
Last year, the Music City’s multifamily market achieved its largest quarterly sales volume ever, approximately $2B. Coupled with double-digit rental growth in the past year, the Nashville market is showing signs of strength in the face of economic volatility.
“The city is experiencing growth in all types of tourism, sports, entertainment, jobs and housing,” said Dan Tansey, principal at STG Design, a Texas-based architecture, interior design and master-planning firm with offices in Austin, Houston and Nashville. “With the city’s unique approach to expansion, 2023 will bring fascinating multifamily projects to Nashville despite market uncertainties.”
Tansey will be speaking at Bisnow’s Nashville Multifamily and Mixed-Use Conference on Feb. 2. Register here.
Bisnow spoke to Tansey to find out more about his professional experiences as a principal at architecture firm STG Design, and how Nashville’s multifamily and mixed-use markets are rapidly evolving.
Bisnow: Why did you decide to speak at Bisnow’s Nashville Multifamily and Mixed-Use Conference?
Tansey: We’ve seen a lot of growth in Nashville’s multifamily and mixed-use markets. Our company's growth and thought leadership in these market sectors uniquely position us in a way that benefits our clients. I'm excited to contribute our approach and knowledge at the conference.
Focusing on multifamily and mixed-use is a great choice for a Nashville event, and we have been particularly focused on these markets in Nashville and Austin. Even as land costs continue to grow, the projects have begun developing, and developers need to strategize how to diversify. That's what we're working on in our day-to-day jobs right now in Nashville.
Bisnow: What about this event are you most excited about?
Tansey: I’m excited to hear my peers’ input and vision for the multifamily and mixed-use market sectors. There's a lot of great speakers at this event who will be covering everything from financial markets to the design side of the equation. I'm looking forward to meeting them and listening to their expertise.
Bisnow: How would you describe your position at STG Design?
Tansey: I’m a principal in our Nashville office, but I wear multiple hats. I'm typically in the principal-in-charge role for projects, overseeing project execution and managing client success. I’m also active in promoting STG Design in a business development role and leading the site analysis and entitlements for our clients and developers. Whether it means going to the city planning department or going to metro council meetings and presenting projects for development, I help our clients and developers go through that process.
Bisnow: What are the greatest challenges facing Nashville’s multifamily and mixed-use market?
Tansey: Financial and lending markets, increasing interest rates, market saturation, land costs and construction costs are all challenges facing Nashville.
Right now, for the lending market, it's becoming harder to find capital and cover debt for projects. For interest rates, we're seeing situations across the board where projects that are almost shovel-ready are being slowed down a bit because of developers waiting for corrections in the market that will show them signs of growth.
We're not seeing this on the design side. All of our projects in design are moving forward if not on an escalated schedule. I wouldn't necessarily say that all the projects are coming to a halt. It's definitely going to be a challenge to get through 2023 and see how the market grows from there.
Bisnow: What new developments will 2023 bring to Nashville? Are there any trends to watch out for?
Tansey: I expect to see the city continue being bullish on tourism and attractions. The continued focus on the future of Nashville's East Bank paired with the city’s unique approach to growth will mean more exciting projects in 2023.
I believe that market demands will remain stable in Nashville, even through a slowing economy. In regards to multifamily and mixed-use projects, I’m seeing developers pushing for unique projects beyond the “norm.” They see the value in architecture as part of a holistic approach to branding and development, attracting more residents and higher rent rates.
The biggest trend we’ll see is continued growth in renters wanting convenience. Whether this be more room for delivery services including packages, on-site grab-and-go, or even entertainment, the shift in how we interact with services daily will ultimately be integrated into developments because renters want convenience.
Another trend I believe we’ll see is a focus on flexibility. We are studying flexible unit layouts and adaptability. Whether it’s a home office or urban mudrooms, renters will want flexibility in how they interact with their living spaces and surrounding amenities.
This article was produced in collaboration between STG Design and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
