Nashville Retail Investment Forecast
Rapid In-Migration and Swelling Household Incomes Drive Music City's Outstanding Retail Outlook
Robust job growth amid minimal construction boosts absorption. Nashville has been one of the most resilient metros in the nation, evidenced by vacancy staying below 5 percent throughout the health crisis. Construction is at one of its lowest levels in the past decade, and much of what is scheduled to arrive has a tenant roster secured, furthering downward pressure on availability. At the same time, the metro has seen multiple outdated centers become repurposed, removing this square footage from the market's retail inventory. Meanwhile, large tech firms like Amazon and Oracle have committed to growing their payrolls in the city. Wage growth tied to the tech sector, coupled with robust in-migration trends, creates a favorable environment for retailers and overall leasing activity. The metro has recently recorded larger leases from grocery stores like Whole Foods, with other essential chains expanding their footprints. Additional signings from gyms and restaurants that were debilitated by capacity limits earlier in the pandemic indicate the long-term confidence many vendors have in the metro's demand drivers.