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Amazon Continues to Pursue Tennessee

CoStar Market Insights: Tennessee Now has the 10th Largest Footprint in the U.S.
June 29, 2018



Online retailer and technology company Amazon.com continues to grow in Tennessee, most recently inking a 125,000-square-foot deal just north of downtown Nashville. This is just one of the many facilities that the online retailer operates out of in the Nashville metro.

Since 2012, Amazon has leased more than 2.3 million square feet of industrial space, dispersed between Murfreesboro, Lebanon and Nashville. This brings the Seattle-based online retailer’s total footprint to be in-line with Atlanta, a metropolitan area that has a population three times larger than Nashville’s. The retailer also has close to 2 million square feet in the Chattanooga area and recently leased 615,000 square feet in Memphis.

This growth has pushed Tennessee to have the 10th largest Amazon presence in the country, with a total of almost 5 million square feet of space. It is third in the Southeast, just behind Florida (8.4 million) and Kentucky (6.1 million).



Amazon strategically locates their facilities in densely-populated areas where it can reach a large share of a local population. This allows Amazon to have record delivery times, sometimes within hours after an order has been processed. Nashville’s population, now at 1.9 million, has grown at one of the fastest rates in the country this cycle, averaging 2 percent growth each year over last five years compared to the nation’s 0.75 percent, making Nashville an obvious choice for Amazon to expand into.

Nashville is also located in the middle of the state and benefits from having access to many major interstates including I-24, I-65 and I-40 flow through the market. Given that Nashville’s growth isn’t anticipated to slow down anytime soon, this market will continue to attract logistics operations, such as Amazon, that are looking to expand throughout the country.


CoStar Market Insights provides a snapshot of recent real estate trends. The CoStar Market Analytics team monitors commercial and multifamily real estate across 390 metro areas, with a granular understanding of the projects, players and economic trends that move these markets.

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