These 2 Sectors Will Be Strong In 2017 (And Likely 2018, Too)
The new year is a great unknown even more for 2017 than usual, but when it comes to the outlook for Nashville's frenetic real estate market, optimism is still the rule rather than the exception. We asked the experts why.
Colliers International Nashville CEO Janet Miller tells us her team feels very optimistic about 2017's growth prospects in Nashville, and on into 2018.
First of all, job growth and economic fundamentals in the Middle Tennessee region continue to be strong, with no signs of abatement. Also, there's strong momentum in the marketplace that should carry over into 2017. Finally, developers and lenders are showing the appropriate level of restraint, so an oversupply isn’t likely in any sector.
Nashville has more than 5.6M SF of office space in the development pipeline. About 67% is pre-leased, according to Colliers' research. About 1M SF feet of backfill vacant space will hit the market between Q3 2016 and the end of 2017.
About the Nashville multifamily market, SWH Partners managing partner John Tirrill Jr. tells us he's pleased with the pace of apartment absorption this year and is hopeful it will continue in 2017.
"The combination of a significant slowdown in starts in the second half of this year and healthy absorption would result in Nashville’s urban apartment market tightening up again over the next couple of years," John says.
SWH Partners has been busy in Nashville recently. The company is leasing up the 194-unit Terra House in Nashville; the 222-unit Greenhaven at Shadow Green in Franklin is under construction; and so is the 247-unit River House in Nashville.
