East Nashville Market Update
September 2020
“When will we start to see pricing reflect the market?”
I’ve been asked this question many times over the last few months.
Tenants and buyers feel that market rates on both for sale and for lease properties should decrease to account for the perceived risks due to the Coronavirus.
However, landlords and sellers entered into the summer in strong positions, keeping them in relatively good standing and without the need to slash pricing to fill vacancies.
It doesn’t seem that prices will decrease in the near future, if at all, and could actually continue to rise as the flight from blue states to red states (particularly the Southeast) continues the expansion in Nashville.
Notable Transactions, Leases, and Openings
YMCA Location in Five Points Sold to Mark Sanders
122 South 11th Street
East Nashville’s Mark Sanders (S&S Property Management) has acquired the former YMCA building that was struck by the March tornado for $1.58 million. He plans to renovate the historic structure and provide office or residential space within the building.
Fat Bottom Brewery Signs Lease for Taproom
2518 Gallatin Pike
Fat Bottom Brewery, which formerly occupied a space on Main Street before relocating to The Nations, has announced plans for a taproom room in the basement of a boutique hotel renovation in the former Eastside Church of Christ.
Cauble Acquires Another East Nashville Site
3210 Gallatin Pike
East Nashville-based investor, Tyler Cauble, acquired 3210 Gallatin Pike in an off-market transaction for $445,000. The space, which formerly housed a tobacco market, will be the new home of In Good Company.
Dickerson Pike Retail Sold to Local Investment Group
836-838 Dickerson Pike
An investment group led by Cushman & Wakefield’s Charlie Gibson has acquired the property for $4.3 million. The site is currently leased to Alphagraphics Music City, Family Dollar, and Cash America Pawn.
New Availability For Sale and For Lease
1112 Woodland Street
East Nashville, 37206
Restaurant for lease in Five Points
2,142 sq. ft. on 0.16 acres
Asking rate of $26.00 PSF NNN
Listed by: The Cauble Group
o. 615.854.7188
Approximately 2,142 sq. ft. available with exposed brick walls, tall ceilings, and a fully fenced in backyard. Restaurant availability is rare in East Nashville, where food & beverage concepts tend to hold strong.
Restaurants can be very expensive to outfit, so this property offers a strong opportunity for restaurateurs only one block from the center of Five Points.
216 East Trinity Lane
East Nashville, 37207
Commercial lot for sale
Approximately 0.18 acre lot (50’x160’)
Asking price of $240,000
Listed by: The Cauble Group
o. 615.854.7188
216 East Trinity Lane is a vacant commercial lot located along East Nashville’s largest east / west corridor: East Trinity Lane. Zoning allows for construction of commercial, residential, or short-term rental buildings.
Nestled between Dickerson Pike and Ellington Parkway only minutes from downtown.
828 Dickerson Pike
East Nashville, 37207
Flex, Warehouse for Lease (build to Suit)
Up to 10,000 sq. ft. on 0.9 acres
Rates starting at $16.00 PSF NNN
Listed by: The Cauble Group
o. 615.854.7188
828 Dickerson Pike is a rare opportunity for new construction flex or industrial space near Nashville’s urban core at reasonable pricing. Suites start at approximately 1,500 sq. ft. and expand upwards of 10,000 sq. ft.
Incoming tenants may design a custom suite on the highly trafficked and rapidly growing Dickerson Pike corridor.
The Latest Market Analytics
The East Nashville market has held strong for the last few years.
The proximity of the neighborhood to downtown Nashville in combination with its highly walkable districts makes the Eastside a strong market for office, retail, and restaurants.
As could be predicted, vacancy rates are low, rent rates continue to rise, and it seems that up to this point, COVID has had very little impact on the market for tenants, landlords, buyers, and sellers.
Here’s the latest on the market in 37206, 37207, and 37216 broken down by property type:
Office
For Lease
Available: Approximately 50 spaces
Asking Rate: $27.48 PSF MG
Vacancy Rate: 4.3%
For Sale
Available: 1 building on-market
YTD Sales Pricing: $165.00 PSF
Cap Rate: 7.5%
Restaurants & Retail
For Lease
Available: Approximately 46 spaces
Asking Rate: $23.71 PSF NNN
Vacancy Rate: 4.4%
For Sale
Available: 9 buildings on-market
YTD Sales Pricing: $204.33 PSF
Cap Rate: 6.5%
Flex & Industrial
For Lease
Available: Approximately 8 spaces
Asking Rate: $7.42 PSF MG
Vacancy Rate: 2.4%
For Sale
Available: 7 buildings on-market
YTD Sales Pricing: $86.00 PSF
Cap Rate: 6.1%
Please note that these numbers are based on the averages of commercial property surveyed within the East Nashville market by The Cauble Group.
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About The Author:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors as a board member for the Real Estate Investors of Nashville.
Tenants and buyers feel that market rates on both for sale and for lease properties should decrease to account for the perceived risks due to the Coronavirus.
However, landlords and sellers entered into the summer in strong positions, keeping them in relatively good standing and without the need to slash pricing to fill vacancies.
Here’s the East Nashville Market Update for September, 2020.