February 13, 2020
Nashville’s skyline continues to grow, as construction on the first tower of Amazon’s Operations of Excellence Center broke ground last year. Just south of Amazon’s project, Asurion broke ground on its 550,000-square-foot headquarters in the Gulch, consolidating its four local locations. These projects will bring in more than 5,400 workers combined.
As more jobs come to Nashville, rental leasing will remain robust, according to a recent multifamily investment forecast from Marcus & Millichap. Rental leasing will reportedly fall slightly shy of the units opening in 2020, and allow market demand for apartments to support rental rate growth for the 11th straight year.
Marcus & Millichap projects that construction will rise slightly from last year, as deliveries reach the 4,700-unit mark. Building on last year’s 6.9% rent surge, the average effective rent will rise to $1,650 per month. Additionally, strong demand will contract vacancy for the second consecutive year, tightening the rate to 4.8%.
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