print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Commercial Real Estate News

Speculative Construction Continues to Rise Downtown Nashville

CoStar Market Insights: Gulch Union Now Underway, Growing the Speculative Pipeline
September 10, 2018
Rendering of the 330,000-square-foot Gulch Union development in Nashville.

Downtown has been the busiest submarket in Nashville for total deliveries this cycle, with a handful of towers being erected in the past couple of decades, mainly build-to- suit.

Companies are extremely attracted to this high-growth area. Hospital Corporation of America and Bridgestone have both constructed new facilities downtown, making up almost half of the space that has been built here this cycle. There have been a few speculative projects such as the 222 tower (391,000 square feet) and 1201 Demonbreun (297,719 square feet) that have leased well and are collectively 95 percent occupied to date.

Strong demand and little speculative supply in the submarket have allowed vacancies to compress by almost 10 percent this cycle, one of the fastest recoveries in the metropolitan area. As vacancies are near historic lows and rent growth outpaces the area’s average, the speculative pipeline continues to grow. And many of these projects broke ground without any signed lease deals.

Of the 1.5 million square feet of space, more than 85 percent of space is still available for lease. The largest project underway is the 379,528-square-foot 501 Commerce tower. The project is located at the Fifth + Broadway mixed-use development that will include 385,000 square feet of office, 350 units and 235,000 square feet of retail and entertainment space. And while there have been talks that AllianceBernstein has chosen this development as its new headquarters to eventually house 1,000 employees, the lease has not officially closed.

Most recently, Gulch Union, a 330,000-square-foot tower that is being developed by Endeaver Real Estate Group and Granite Properties, broke ground without any finalized leases and is set to deliver by 2020. While downtown Nashville has seen some of the strongest leasing this cycle, this will further test the market to see how much supply it can handle.

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.

Learn how CoStar Market Analytics can add to your market knowledge, helping to minimize risk and maximize returns.

 Find us on 

Welcome To CoStar's
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News