The rise of commercial real estate in Nashville has led Jones Lang LaSalle investment management company, or JLL, to include Nashville on its NERDS list – a list of secondary markets that are continuing to grow as the larger metro areas – like Atlanta and Los Angeles – become overpopulated and overpriced.
Nashville is in good company with cities East Bay, Raleigh-Durham, Denver and Salt Lake City rounding out the acronym. According to JLL, NERDS city populations have grown by an average of 7.4% over the past 6 years – more than double the national average. In addition, both education and employment is higher in NERDS markets than the national average.
According to the Tennessean, more than 1500 people move to Nashville each month and Nashville experienced a record-breaking commercial real estate year in 2015. In fact, Real Capital Analytics shows that more than $3.5 billion in commercial real estate changed hands during the past year. And according to the Nashville Area Chamber of Commerce, there were 37 business relocations and 117 expansions in the last two years and the city expects the trend to continue in 2016 with more than 18,000 new jobs anticipated in Davidson County alone.
And while JLL is measuring the increase of commercial real estate, the rise of commercial real estate naturally leads to an increase in residential real estate. As more companies move here and more apartment complexes continue to spring up in affluent areas, young professionals flock to the area and then decide to put down roots with a residential real estate purchase in the following years.
Though real estate prices have continued to increase over the past few years, Nashville and its surrounding areas still offer a more affordable housing situation than many similar cities. In recent years, Kiplinger.com found the 10 U.S. cities with more than 250,000 inhabitants that have the lowest cost of living. Their list of Most Affordable Big Cities included Nashville in its #4 spot, falling only behind Memphis (#1), Columbus, OH (#2) and Omaha (#3).
Nashville continues to pop up on many lists for its educational and employment offerings as well as its affordability. We should continue to see a rise in prices in both commercial and residential real estate throughout 2016 as people continue to flock to the city and its many opportunities.