Currently, many regional and national retailers maintain a presence in Nashville. The Nashville retail market remains one of the strongest in the country (5.8% overall vacancy) and the volume of newly developed Class A retail space has increased rental values more than 2.5% over last year to an average of $15.26 per SF. Several large projects are under construction now including The Avenue in Murfreesboro (810,000 SF with over 100 restaurants and merchants), and The Streets of Indian Lake in Hendersonville (405,000 SF upscale retail). The recently completed Hill Center in Green Hills added a 200,000 SF lifestyle center anchored by Whole Foods, Anthropology, West Elm and California Pizza Kitchen.
for For Lease
In terms of investment sales, the Nashville retail sector has been trending way ahead of the country, with $585 million in retail transactions between July 2007 and July 2008 (reported by CCIM). These record sales garnered an average $137 per square foot price tag and median cap rate of 7.5%. Due to the lack of developable land that is properly zoned, developers and large tenants have been turning to more creative solutions.
for For Sale
Rehabilitating older shopping centers that have gone dark or been underperforming has been a recent trend seen in Nashville. The 100 Oaks Mall (850,000 SF), long known as a "dead mall" sold for a paltry $46 million to M & R Investments out of Dallas. Soon after the purchase, Vanderbilt University Medical Center leased 435,000 SF of vacant floor, retail and office space intended for outpatient and back office operations. Foursquare Properties, based in California, is purchasing Bellevue Mall from Madison Marquette, based in Washington DC, pending approval of a $100 million redevelopment plan. Replacing the 800,000 SF of underutilized and old space would be 1,200,000 SF of open air retailers, restaurants and pedestrian friendly office space.