How universities and healthcare systems anchor Nashville’s real estate surge

Writer: Eleana Teran

November 2025 — Middle Tennessee’s growth is redefining how healthcare and education shape the built environment. In Nashville, that connection is visible across the city’s expanding campuses and medical corridors, where universities, healthcare systems, and developers are working together to meet both workforce and community needs.

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According to Transwestern’s 2Q25 Nashville Healthcare Market Report, the region’s healthcare real estate fundamentals remain strong, with the direct vacancy rate at about 6.6%, holding within a steady 5.7% to 7% range since 2021 even after more than 1 million square feet of new space was delivered. Average asking rents have risen to $34.22 per square foot, reflecting sustained demand as population and medical employment continue to grow across the metro.

Healthcare remains a cornerstone of the local economy. The Nashville Health Care Council reports that more than 900 healthcare companies now operate in the area, spanning hospital management, life sciences, and digital health innovation. At the same time, the Business & Economic Research Center at MTSU projects that by 2030, the state’s healthcare and social assistance sector will add over 80,000 jobs. These employment shifts are being recognized by higher-education institutions and developers alike, as they respond not only to facilities demand but to talent pipelines and community outcomes.

These trends are driving new conversations about real estate, talent development, and community impact. Developers are adapting to the rise of healthcare-anchored projects, where clinics and therapy spaces are increasingly integrated into mixed-use environments. At the same time, higher education institutions are expanding medical schools, launching healthcare training programs, and partnering with developers to meet the region’s rising demand for skilled professionals and modern facilities.

This intersection where education meets healthcare, and workforce meets infrastructure, is defining Nashville’s next phase of growth. Invest: spoke with regional leaders whose organizations are shaping the evolution and supporting the next wave of development in Middle Tennessee.

Brannen Edge, president & CEO of Flagship Healthcare Properties

Nashville feels like the healthcare center of the country. It’s home to major healthcare REITs, hospital systems, surgery center operators, and providers. We opened an office with just one person, and it’s now grown to a team of five and we’re outgrowing our space. Tennessee has become increasingly important to us, with seven properties generating about 6% of our net operating income. We’ve invested in multiple markets — Chattanooga, Knoxville, Memphis — and we’re preparing to buy another building in Chattanooga. Still, Nashville remains at the heart of healthcare, not just in Tennessee but nationally, and we plan to continue putting resources into that market.

Teaching hospitals and medical schools are crucial drivers of healthcare growth in markets like Nashville, Tampa Bay, and now Charlotte. They not only train the next generation of doctors and nurses but also attract research funding, drive innovation, and spur business investment. Charlotte, for example, is finally getting a medical school, which will be a game-changer for the region. A strong educational and research presence strengthens the entire healthcare ecosystem.

Elizabeth Goodwin, senior managing director and Tennessee market leader at CBRE

Nashville is full of opportunities, but it’s also evolving quickly. Nashville’s rapid growth, particularly in the tech sector, is a key focus for CBRE. Our recent “Scoring Tech Talent in 2025” report highlighted Nashville’s strong position, ranking it third in the nation for tech job growth.

Another unique growth opportunity exists within healthcare. Last year, we added Alan Kirby as a leader of our Healthcare Services Group in Nashville to help us navigate this complex industry that is becoming more retail-oriented, with minute clinics and therapy offices being incorporated into mixed-use developments. So, really, mixed-use is booming.

Shanna Jackson, president of Nashville State Community College

Employers increasingly value practical skills over degrees for many roles. We’re seeing more success as we align training with specific employer needs. That’s the future of education. We support both degree and non-credit training. Healthcare has seen strong growth, particularly in entry-level roles like patient care technicians — jobs that don’t require degrees but serve as stepping stones to advanced programs. While this has always been our focus, it’s now gaining more traction, especially with support from state leadership. We remain committed to helping adult learners access training while balancing work and family.

We’re also working through the Nashville Area Chamber of Commerce to create a regional healthcare workforce collaborative. Many healthcare roles don’t require a degree but can lead to longer-term careers. This initiative focuses on quickly launching training programs for those roles. We recently reopened our East Davidson campus in partnership with the Tennessee Department of Labor and Workforce Development and Workforce Essentials. It now houses our entire workforce development team and an American Job Center, creating a one-stop shop for job seekers and employers.

Greg Jones, president of Belmont University

The biggest highlight is the opening of our Thomas F. First, Jr. College of Medicine. We admitted and welcomed our first class of 50 students. They’re now completing their first year of medical school. Given both the healthcare needs in the country and Nashville’s role as a healthcare city, we are now developing healthcare professionals in medicine to complement our work in nursing and pharmacy, and health sciences is tremendously exciting.

Part of what we built with our new College of Medicine building is a 60,000-square-foot simulation center that is both high tech and high touch. We’re right out there working with advances in AI and technology in healthcare. We’re also focusing on that high-touch interaction, but you also want a healthcare professional who knows you as a whole person, and our approach to technology and education allows that to happen. We’re looking to adapt and focus on practice in all that we are and do.

Top image provided by R.C. Matthews Contractor

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