[MIRYDI]

Originally Posted by Cashville

Nope, Im getting my info from the people that actually monitor the market. I know for a fact that last year ago there were still around 250,000 sqft available in the building which was only able to place it 2nd downtown. edit: and is still around 100,000 unoccupied. Downtown is still lagging behind other segments in the city and it will be a long time before 800,000 premium sqft are needed in the CBD.

I'll leave anther article for you to read enforcing the fact that there is a desperate need for office space downtown. Add that together with how strong Nashville's economy is, and how fast companies are relocating here, and it only makes sense that more tower's are going to be popping up soon.

Right now if a large company wanted to move downtown, there is nowhere for them to go. Thats why this one has a solid chance whether you want to believe it or not.

Here is the article. It's a long read so I'll just put up a few quotes, but I encourage you to read the whole thing. I would listen to more stuff like this vs your "people that actually monitor the market." What I posted up has been the market trend for a while now in Nashville and it's only getting hotter.

http://www.tennessean.com/interactiv...building-sales

Strong numbers
In considering potential acquisitions, office building buyers typically look at market-specific information, such as job growth and the local economy, diversity of industries, opportunities for rent growth and the pipeline of new buildings. Duration of tenants’ leases is among the variables that determine the value of buildings.

Since 2010, Nashville has outperformed Moody’s Analytics’ expectations for growth in jobs in fields for which office space is needed — business and professional services, information technology and financial services, said Alex Miron, an economist with the forecasting firm. Those employment numbers have been growing at a pace of 6 percent a year since the middle of that year, outpacing growth nationwide of only 2 percent.

“When office-using employment is growing quickly, we tend to see price per square foot of office space rise and vacancy decline,” he said. “Those are good indicators when it comes to regional commercial real estate. It doesn’t look like that’s due to slow down soon. This is a growth driver for Nashville for now — its commercial real estate sector.”

David R. Hendrickson, a managing director of real estate investment banking at Chicago-based Jones Lang Lasalle, who has covered the market here for eight years, cited health care, area universities, government and music among sectors driving Nashville’s diverse and strong economy and its growth into being a primary acquisition target for investors nationwide.

The benchmark interest rate for financing acquisitions of office buildings edged up 0.85 percent over the past two months, but Hendrickson said financing remains available for deals. Some potential buyers here and in other major cities are seeking out shorter-term loans at more attractive rates. “We’re seeing that properties are still trading, the market is still strong and there’s plenty of money available for acquisitions,” Hendrickson said.

The mere prospect of interest rates heading up, however, provides an incentives for buyers to make deals now.

Tighter vacancy rates of office space in the suburbs, especially Williamson County, meanwhile, has boosted appeal of office space in Nashville’s central business district. That, along with diversification in mix of downtown’s office tenants to include technology companies with younger workforces, has helped to reduce vacancy there from a peak of 24 percent to between 12 percent and 14 percent, according to downtown office market reports.

In the first half of this year, $78.6 million of office investment sales have occurred in the Nashville market, representing 10 deals and 498,366 square feet of space, according to a tracking by Cushman & Wakefield/Cornerstone’s capital markets group. That doesn’t include the Bank of America Plaza sale or the pending sale of Regions Center.

After a flurry of deals near year-end in advance of pending tax law changes, investment sales volume slowed in the first half of this year. But brokers see the many buildings in the sale pipeline that also includes the three-building Grassmere Business Center, plus buildings Sony Corp. owns off Music Row and in Cool Springs, as an encouraging sign.

“This is indicative of the fact that property owners are in a position to finally have an exit strategy that allows for them to make money as opposed to a distressed sale, as Nashville continues to lead the Southeast as one of the region’s most dynamic and fundamentally strong markets,” said Lisa Maki, associate director with the Cushman & Wakefield|Cornerstone capital markets group, which specializes in investment sales.