Writer: Ryan Gandolfo
Regional Review is a year-end series from Capital Analytics that looks at key developments throughout the year and sets the stage for what’s to come in the near future.
3 min read December 2023 — Amid today’s uncertain economic climate, Nashville is outperforming mostly all metro areas in the United States. With a new mayoral administration at the helm and major public-private developments underway in Music City and around Middle Tennessee, the region is positioned to address the needs of businesses and residents, from improved transportation to workforce housing.
“When we reflect on the achievements of the past year and contemplate where they are leading us in the future, it becomes evident that we’re witnessing the ongoing expansion of opportunities in Nashville, a process three decades in the making,” Ralph Schulz, president and CEO of the Nashville Area Chamber of Commerce told Invest:.
Success in Nashville can be defined in many ways, from the nearly 100 transplants moving to the metro area per day in 2022, to the state record $27.5 billion in travel spending last year. Music City was even the first stop on the CNBC show Cities of Success, showcasing what has attracted high-performance companies such as AllianceBernstein and Nissan North America to the region over the past two decades.
This past year saw new milestones reached on the planning for the East Bank development, with Boston-based The Fallon Company tapped by City Metro as the master developer and HDR to oversee planning, engineering and construction on East Bank projects, which will include affordable housing, walkable mixed-use districts, a mobility hub transit center, 12 acres of parks and the new Tennessee Titans domed stadium. The $2 billion-plus, 1.8-million-square-foot building will break ground in 2024 and is expected to open in time for the 2027 NFL season. Meanwhile, much like The Gulch redevelopment, which was spearheaded in 2006, the transformative East Bank is expected to take several years to come to fruition and could change the landscape of metro Nashville.
“The central theme in Nashville revolves around managing growth. When we examine the installation of the new stadium, we’re essentially elevating our standards. Additionally, the East Bank development on that side of the river represents the most significant blank canvas for development opportunities in this region,” Schulz said.
Beyond Music City limits, major companies have relocated across Middle Tennessee as it continues to expand and attract new businesses. PepsiCo Beverages North America recently announced plans to move its distribution warehouse facility from downtown Nashville to a larger space in the town of Smyrna, located in Rutherford County. Over in Wilson County, Lebanon’s Speedway Industrial Park welcomed online restaurant supply company The Webstaurant Store, LLC as a new tenant in 1Q23. The Pennsylvania-based company will invest $103.9 million and create 225 jobs in the county.
Part of the region’s long-term vision is to connect cities across Middle Tennessee through a revamped mass transit system. In October, Forbes ranked Nashville the No. 1 city with the hardest commute in the United States, narrowly beating Charlotte and Jacksonville for the bottom of the commuter totem pole. Five years after voters turned down a plan to change multimodal transportation infrastructure in Nashville, this year saw new discussions surface, with Mayor Freddie O’Connell contemplating another ballot measure in 2024 where high voter turnout would be expected for the presidential election.
Greater Nashville has an opportunity to address both transportation and housing concerns with a singular focus as transit-oriented development (TOD) becomes a greater priority. According to Civic Design Center, Hamilton Springs is the “first community in Middle Tennessee that was planned as a TOD,” near the Music City Star commuter rail and walking and biking trails. In August, the U.S. Department of Transportation announced $13.4 million in competitive grants to spur more planning and development near transit hubs, signaling a nationwide push that contributes to affordable housing and community development beyond downtown areas.
“I believe one upcoming development, as a member of the Planning Commission and with our new mayor’s focus, is a shift toward enhancing the areas surrounding downtown,” Moody Nolan’s Nashville Office Managing Partner Brian Tibbs told Invest:. “While a vibrant downtown is crucial for cities, there’s a growing commitment to improving nearby communities.”
