Writer: Jerrica DuBois
3 min read January 2024 — The new year is considered a time for reflection and reinvention. That not only applies to the individual, but also to businesses and organizations as they look to make the next year better than the previous one. Business leaders in Middle Tennessee are no different, and the state’s strong economic position gives even more reason for optimism.
According to the 2024 Economic Report to the Governor of the State of Tennessee, a major economic factor is the deescalation of gross domestic product (GDP). Although it is evidence of a cooling market, Tennessee’s 1.8% growth is still higher than the national average of 1.4%. Other news highlighted by the report is the expected increase in wages by 4.7% for the Tennessee workforce. While that still lags behind the national level, it is a positive step in narrowing that gap. For more information, see the Invest: Nashville Regional Review.
As the new year begins, Invest: caught up with regional leaders on their goals and expectations for 2024 and beyond.
What is your outlook for the industry for the next year and beyond?
Ryan McLaughlin Wood, South Central Market Executive, UBS Wealth Management: When we look out into the future, there is a major wealth transfer between generations coming, with $84 trillion expected to be passed down to younger generations in the U.S. within the next 20 years. At the same time, there are more women controlling wealth, and that goes hand in hand a bit. It’s important that we have the right tools and advice to capture it from an advisor standpoint. Additionally, it’s important that we have the right professionals and expertise to serve the clients that need us.
I think people are going to continue to move to Tennessee. There are good tax benefits of living here, so I think five years from now Nashville is the place our business wants to be.
Alex Chambers, Senior Vice President, Nashville Market Leader, Highwoods Properties: Ensuring our current buildings remain fully occupied is a priority. Fortunately, rents have remained stable, with some upward trends depending on the specific market and building. We have notable development sites in downtown Nashville, Brentwood, and Franklin. While the immediate development prospects are paused, our strategy is to determine how to utilize these properties in the interim.
Consistent with our ongoing efforts, we continue to invest in upgrading our existing assets, focusing on making our office buildings commute-worthy. This aligns with our commitment to creating spaces that cater to the evolving needs of those deciding where and how they work.
Regional Review: Nashville remained a top performing city in 2023, strong outlook ahead
Bradford Vieira, EVP & Regional CEO, ServisFirst Bank Nashville: We’re focused on growth, which starts with hiring good people. We recently hired a three-person mortgage team and expanded our leadership team with the addition of two accomplished banking veterans. Our model is to find and hire good bankers that clients trust and provide them with all the tools and support they need to win. Our culture sets us apart from the competition and motivates our team members to stay. Regardless of the economic environment, we’re sticking to our proven strategy that has consistently delivered success over the past 20 years. We have no plans to venture into banking services outside of our current scope or those we haven’t previously undertaken, such as insurance, wealth management, or running capital markets.
Jason Holwerda, Partner & Market Leader, Foundry Commercial: I’m generally optimistic but anticipate challenges in the next six months to a year, especially considering the current geopolitical climate. Post-Jan. 1, 2025, I expect conditions to improve, leading to a more positive outlook for 2026 and 2027. We are currently dealing with the aftermath of significant events from 2020 and 2021, including inflation and supply chain issues and the Fed’s reactions to these events. In Nashville, our diverse economy and strong job growth offer some resilience, but we’re not completely shielded from these broader challenges. My focus is on navigating through these trying times and capitalizing on our strengths in the coming years.
For more information, please visit:
https://www.ubs.com/us/en.html
