Commercial, residential real estate demand expected to go up in 2013
NASHVILLE, Tenn. -
Nashville is poised to see some major growth over the next few years, and those moving to Music City need space to live and to work.
However, within Nashville city limits that space is scarce.
According to Commercial Real Estate Broker Shane Douglas with Colliers International about 91 percent of Nashville's office market is currently occupied, which makes competition fierce.
"We've got several tenants that we represent right now that are interested in leasing anywhere from eight,10,15, 20 thousand square feet of space and to find the kind of space that they want, it's in pretty short supply right now," Douglas told Nashville's News 2.
With commercial real estate property in such high demand, many residents looking to rent or buy in Nashville are also facing that same supply problem.
"With 95 percent occupancy rates in multi-family apartments, community-wide that's where you see the rents pushing up, that's where you see new developments coming online, that's where you find it hard to get new apartments," Douglas said.
Which means both commercial and residential tenants could be paying much more in the future.
"With commercial real estate, new jobs are created and that creates demand for office space and when that demand for office space goes up, usually the prices go up," said Douglas. "We've seen some of the highest year over year rent gross in apartment prices, rent prices compared to most other cities nationwide."
Most recently according to Kiplinger, healthcare, education and a strong business community help rank Nashville as one of the top eight cities for projected job growth.