Nashville Retail Market Overview
As one of the fastest-growing economic centers in the U.S., Nashville holds promising commercial real estate investment prospects. The Music City ranked third overall in CrowdStreet’s national list of top commercial real estate markets to invest in and sixth for best places to invest in retail. The population increased 21 percent in the last decade and is projected to grow by another 500,000 people over the next two decades.
In the last 12 months, Nashville has recorded $1.6 billion in retail sales. The market reached a record sales volume in 2021, over $1.3 billion, which has helped boost sales thus far in 2022. Sales in Q1 2022 alone reached $350 million.
Companies Moving to Nashville
From January 1st, 2018, to June 30th, 2021, 25 California headquarters relocated to Tennessee. According to the Fraser Institute, Tennessee is one of the top five states with the most economic freedom in taxes, the labor market, legal systems, property rights, and business regulations. Chief Executive Magazine ranked Tennessee as the third best state for business, right behind Florida and Texas.
- Kaiser Aluminum
- Iron Galaxy Studios, LLC
New construction in Nashville is minimal as developers focus on adding ground-floor retail to apartment and office buildings. Downtown Nashville has been the most active submarket in terms of multifamily development in recent years thanks to elevated population trends. There is currently 1.2 million square feet of retail space underway, accounting for one percent of inventory. That is a decade low for Nashville. Retail development is mostly concentrated in suburbs Williamson County and Henderson-Gallatin.