Here are recent notable stories from the commercial real estate and construction industries:
Nashville is still “It”
Nashville as the “It City” hasn’t slowed down yet, as last quarter, Metro issued a record-breaking number of construction permits – totalling $1.43 Billion. That’s $16 million a day. That sets Davidson County up for a recording-breaking fiscal year.
Under one roof
All the new development doesn’t mean that affordable housing is totally out the door. Mayor David Briley recently enacted the Under One Roof 2029 Initiative, which promises $750 million to be used for building 10,000 affordable housing units over the next decade. Of that, $500 million will be an investment of city dollars. The units will have four classifications: “deeply affordable,” “affordable,” “workforce” and “market-rate.” Residents will qualify based on their income relative to the city’s Median Family Income, which is $74,900.
NBJ Power Leaders in Commercial Real Estate
The Nashville Business Journal released its list of 2019 Power Leaders in Commercial Real Estate. These honorees are nominated by the community, then voted on by the fellow nominees. See who made the cut!
Fairgrounds property made the big bucks
A property located in the Nashville Fairgrounds sold for three times its previous price. The new owners plan to convert it to office and retail space. It’s another “Opportunity Zone” purchase aimed to counter the major demand for new office space as Nashville becomes a global business hub.
The future of proptech
A big topic of Urban Land Institutes’ annual meeting (which just so happened to be in Nashville) was the future of “proptech” in CRE. Innovative software platforms are popping up left and right to perform services like monitoring buildings’ energy and water use in real time or providing a building’s tenants access to control appliances and devices from afar. The panel of experts who spoke about it say that these technologies could change the way owners work with tenants and make buildings themselves more efficient and sustainable. They’re not sure what the economic outlook is yet.
Outlet centers are still going strong
Despite the “Retail Apocalypse” that is hitting the brick-and-mortar retail sector, outlet centers seem to be keeping their roots. Analysts are noting that customers still seek out those brand names at a value, and they see outlet centers as a fun shopping experience.
Autonomous construction equipment on the horizon
Like self-driving cars, engineers in the construction space are dreaming up autonomous technology of their own. The theory is that making autonomous construction equipment, like cranes or drilling rigs, could make construction sites safer, more reliable and more efficient, especially in challenging work conditions like mines or agricultural fields. These technologies are still in the preliminary stages, but could become part of the mainstream sooner than we think.
Where in the world is the construction work?
The construction boom isn’t unique to Nashville – it’s making its mark all over the U.S., especially in these states. The Census Bureau predicts that by 2026, the sector will have seen at least a 12 percent job growth, especially in the mid-level positions as Baby Boomers are phased out. But the jobs will mostly be in specific sectors like oil and gas pipeline construction, residential remodelers, utility system construction and highway, street and bridge construction.
What trends are you seeing in the CRE and construction industries? Discuss below!