| NASHVILLE OFFICE MARKET
Historically, Nashville, Tennessee, has been blessed with a diversified
economy, and this economic diversification has played a role in the development
trends of the city, according to Michael Murphy, managing partner with
Cumberland Advisors in Franklin, Tennessee.
The proliferation of the healthcare industry and the sheer number of new
companies generated in this industry has facilitated much of the office
expansion in the past several years. Although the current Class A vacancy
rate in the Cool Springs submarket is 18 percent, a significant amount
of activity has taken place in Cool Springs over the past 4 years.
The desirable residential neighborhoods, excellent infrastructure,
restaurants and retail support in this submarket are all contributing
influences of this trend, but I believe the success this area has enjoyed
is the culmination of available space and the growing number of Nashville
entrepreneurs who are choosing suburban office locations, says Murphy.
These entrepreneurs have chosen to locate their offices near their
homes, which has fueled much of the absorption in the Brentwood and Cool
Additionally, we are seeing a strong demand for space in the West
End corridor, Murphy continues. This is due to the number
of employment anchors located there and the abundance of services conveniently
available. The downtown/Gulch and Music Row areas are also poised to land
additional development opportunities, albeit substantially anchored by
Roundabout Plaza, situated at the Demonbreun Street roundabout and Music
Row, is a significant new development. It is one of only a couple of office
projects under construction at this time. It is an Eakin Property development
and will be a 205,000-square-foot, nine-story structure. Boult Cummings
Conners & Berry PLC will anchor the building, absorbing 85,000 square
Roundabout Plaza is significant because it is situated between two distinct
submarkets the central business district and West End. The blending
of Nashvilles financial district tenants and music row tenants is
to some degree symbolic of a blending of these cultures, which have heretofore
been largely autonomous. Some music industry tenants have also ventured
into the CBD. The city sees the Roundabout as a significant improvement
linking several neighborhoods together, Murphy explains.
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