Apartment Rental Rates Continue To Rise In Nashville
by Chris Cannon
NASHVILLE, Tenn. - Rental rates for apartments in Nashville continue to rise, making the city's annual average rate the third highest in the Southern region and eighth in the U.S.
"We are one of the most healthy multi-family apartments markets in the country," said Shane Douglas, with Colliers International's Nashville office.
Nashville's apartment market ended 2012 with results well above the Southern region in both rent and occupancy.
"With 95% occupancy, it's a tight market," Douglas said.
The high occupancy rate led to the increase in rental rates for the last 11 quarters.
"So we're competing with the San Francisco's, the New York's, the LA's as far as rental rate increases," Douglas explained
The average rental rate in Nashville for the last quarter of 2012 was $864.
"When you have tight supply that's going to push prices up. And really, that's what's spurring the demand and interest from investors and institutional capital from across the country," according to Douglas.
Nearly a dozen new multi-family complexes are proposed, or under construction within three miles of downtown.
These projects include the following under construction developments along West End: 244-unit West End Village, 200-unit Park 25 and 331-unit Elliston 23.
Douglas said Nashville's popularity in the corporate world is the reason behind the robust apartment market.
"Corporations are moving here. It's all really driven by jobs. When corporations relocated the headquarters to Middle Tennessee, those jobs bring the people who drive the apartment demand, citywide," said Douglas.
He does not see the growth slowing down in the near future.
"I do see this trend continuing, but all signs point to we're not going to be overbuilt, we've got significant demand for new apartments and we're absorbing these units that have been delivered relatively quickly," Douglas said.
Nashville as one of the top eight cities for projected job growth in the United States, according to Kiplinger Magazine.
Tuesday, June 18 2013 8:33 PM EDT2013-06-19 00:33:57 GMT
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