STATE OF NASHVILLE OFFICE MARKET

[smeagolsfree]

An article in the 10ecn today about the state of the class A office market having the lowest vacancy rates in 10 years. Looks as if we could be on the verge of a building boom.

“It looks to me like this city could use a few more buildings,” Thorpe said. He projected Nashville could create 61,000 new jobs over the next four years,which could translate into 3 million square feet of new demand.

That is two more WES.

Here is the article

http://www.tennessean.com/article/20121004/BUSINESS02/310040072/Nashville-office-space-premium?odyssey=mod{sodEmoji.|}newswell{sodEmoji.|}text{sodEmoji.|}FRONTPAGE{sodEmoji.|}p

[MLBrumby]

The article states also that 45,000 new jobs have been created in the past 2 years!!! That's an expected 100+ thousand jobs in 6 years! There is some formula that you can use for jobs to population growth... and I'm not sure what the multiple is, but I recall that it is around 1.8 new residents for each new job. Obviously whatever the figure, not everyone filling those jobs will be a newcomer to the area... and those who are will bring family members with them. But there is some consistency in the number during a strong economy. Right now, there are a lot of folks already in Nashville who are begging for jobs.

[timmay143]

Hmmm...interesting. It will be interesting to see if more of the proposed become more under construction. At this point, I think Nashville could survive from speculative growth.

[UTgrad09]

Unfortunately, I'm thinking that at least a decent portion of this speculative building will take place in office parks.

It would be a great opportunity for some of the Market Street proposals in the Gulch to get underway. Maybe some modest mid-to-high rises. I don't see a skyscraper being built without a large scale corporate relocation or a massive expansion.

[smeagolsfree]

After talking to WW, we sort of think there could be an announcement soon on the Eakin tower that would be next to the Hensler tower. I think if anything happens as far as space that may be the first. I think the Eakin project apeared on bidclerk this week. They have the ammount of sq ft wrong like they did when they first listed it at 45,000 sq feet instead of 450,000.

As far as a spec building goes my money is on Gulch Crossings. Spectrum is a pro at marketing thier spec space.

This would also bode well for ONEC1TY

[timmay143]

Is the Eakin portion a two tower deal or just one? In the project thread there is RH's apartment tower, then next to it Eakin's with two proposed office towers. I'm really confused . I thought it was originally all Eakin with two towers, one office and one residential. Then RH took over the residential portion, with the office tower left to Eakin. What is correct ?

[nashvylle]

1 office tower to be built by Eakin, 1 tower to be built by RH.

[timmay143]

1 office tower to be built by Eakin, 1 tower to be built by RH.

Thanks, that's what I thought.