Report: Nashville among most active office markets

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NASHVILLE, Tenn. (WKRN) — As we all know, the pandemic brought unprecedented change to the way we work. As a result, companies are re-evaluating their office space needs.

However, a new report begs to question whether Nashville was as greatly affected by the pandemic. Nashville currently is outpacing cities like Brooklyn, Chicago, Philadelphia, and Miami when it comes to building new office space.

Commercial Cafe’s 2021 Office Pipeline report dubs Nashville as one of the most active office markets, with construction crews set to deliver more than three million square feet of office space in 2021.

“If you think of just the employers we have in town, it doesn’t surprise me at all,” said Andy Brown, COO at RE/MAX First Choice.

Ascerian headquarters, Broadwest and Amazon’s Center of Excellence are all set to open in 2021. Other projects like Nashville Yards, with more office space, will come to fruition in a couple of years.

However, progress was halted due to COVID-19.

“We’ve started to see an indication of that waiting come to an end in the last few months,” said Ben Rooke, Regional President of Brasfield & Gorrie. “Architects are getting a bit busier being asked to design some things and look at things.”

And from the looks of it, Rooke says things have changed.

“In 2020, we saw one to two very slight potential office buildings whereas 2019 we would have seen 7-8 across our desk, large, $100 million-type downtown office buildings.”

Keep in mind, the buildings with office space being built right now were likely planned prior to COVID-19. So, what happens moving forward?

“Are we going to continue to build the skyline with office space, or is that going to be more converted to, you know, that live, workspace where there’s some residence space and then some workspace too,” Brown asked.

Brown thinks mixed-use developments with office space aren’t going anywhere anytime soon, though Rooke says more may step away from downtown.

“Places like Brentwood, Maryland Farms, Franklin where you got surface parking and low-rise buildings, five to six stories, we feel like those may get a little hotter whereas downtown was super-hot before.”

The two agree that moving forward, office space will be needed, just maybe not as much. However, Brown says the demand for warehouses in Middle Tennessee continues to grow.

News 2 is reporting on Nashville’s historic growth and the growing pains that come with it. Click here for more Nashville 2021 reports.

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