Tennessee - Best Investment Areas

[Clay Bradley]

Currently looking into the Tennessee market for myself and 2 partners. I wanted to see if anyone had any local, insider thoughts or comments on Nashville, Memphis, Knoxville, or Chattanooga. Any strong opinions on one to the other. Anyone willing to share some updated local market insights?

I have seen a few posts but most seem to be from a few years ago at this point. Thank you!

[Tyler Cauble]

@Clay Bradley I'm a commercial real estate broker and investor based in Nashville. Here are my favorite cities in Tennessee, ordered by preference, and why:

1. Nashville: Some think the market is overpriced, but you could've said that about Atlanta in the 80s and 90s. Look at where their metro is today. There are still a number of opportunities to invest in the city that aren't just appreciation plays. Nashville has quite a bit of commercial product that was built in the 70s, 80s, and 90s that is prime for a value-add investor. Last year, I bought 4 office buildings in the area, all under $100 per sq. ft. Market average is well over twice that, so we're able to renovate and bring the properties to market at below market rates, allowing for a very competitive reposition.
2. Chattanooga: Millennials are flocking to this city because of the University of Chattanooga, the bar / restaurant scene, the quality of internet, and the outdoors. The urban core is very similar to East Nashville - it's hip, walkable, and they have pretty incredible food and brewery options. Their internet is among the best in the country, thanks to the city's adding fiber throughout the metro 10 years ago, so it's a great play for tech companies that want a lower cost of operations. As far as outdoors go, you can hike, swim, fish, kayak, glide, camp, and so much more. And not to mention, it's located conveniently between Nashville and Atlanta. 
3. Knoxville: I haven't dug too far into the Knoxville market, but I spent some time there as a college student. There will always be a need for student housing, if you're into that type of investment product, and they have some outlying suburbs that are relatively wealthy and growing. 

Hope that helps!