There were 1,200 apartment units built by Atlanta-based SWH Residential Partners in Nashville in a period past three years. But the latest report says that the company will be taking a break this year.
According to Tennessean, the decision to take a break from constructing more units was made following concerns that the market may be overheated. The presumption is presented by the 15,000 units that are still under construction as building costs are rising.
John Tirrill, SWH Residential's managing director, said, "The market is healthy right now and should be able to absorb the pipeline, but we don't need to add more supply in the near term."
On the development side, experts see more new apartments, office, industrial and mixed-use buildings become rampant in the Nashville area this year. But the rate at which the district adds jobs and people will help experts tell how those building spaces are absorbed fast and also eventually how long the growth boom would stretch out.
"Since 2010 on average, we've created about 30,000 jobs a year," Tennessean quotes Tom Frye, a broker with retail-focused real estate firm Baker Storey McDonald Properties Inc. in Nashville. "As long as that trend continues, I don't see a pause in the action."
According to the Tennessean, Randall Gross, a local economic and development consultant reportedly said that many college graduates are moving in to Nashville because their way of life tunes in prospective companies and jobs. With this Gross said, "The growth in jobs translates into demand for different types of real estate, including apartments, retail, office and industrial space."
In their Emerging Trends in Real Estate 2016 report, the Urban Land Institute and accounting/consulting firm PricewaterhouseCoopers has put Nashville in the ranks of the country's top 10 real estate markets to monitor in 2016. At the same time Nashville was also ranked No. 7 among 18-hour cities that have "vibrant attractions."
