Nashville Outpaces Atlanta in This Area

ATLANTA—Is Nashville competing with Atlanta on the tech office front? The short answer is yes, according to a new research report by CBRE Group.

The report, which analyzes the top 30 tech cities across the US and Canada, shows an aggregate rent premium of 11% across all 30 markets. That number that jumps higher in the hottest tech submarkets, including Santa Monica, which had the second-highest rent premium in North America, between Boston's East Cambridge at 87% and Mountain View (Silicon Valley) at 73%.

In Nashville, technology jobs have grown 23% between 2012 and 2014, placing it above most markets and in the fifth spot among the top 30. The technology sector has grown as a result of the overall office market's growth and stability. What's more, Nashville has a skilled labor pool and offers lower than average office rents, ranking number 18 nationally for office rent growth. By contrast, Atlanta's tech job growth has risen 7.8% between 2012 and 2014, above the 5.7% national rate and 22nd among the top 30.s

“Nashville's top five ranking is indicative of the cross-cultural allure of the city,” Stephen Kulinski, CBRE Nashville managing director, tells GlobeSt.com. “Its pro-business attitude coupled with its 'cool factor' makes the city a destination for top young talent. We are able to compete with the Silicon Valley or Austin markets and investors as well as top tech companies are recognizing that, as shown with the presence from companies like Uber or ForceX in our market.”

In 2014, Nashville had 11,427 tech jobs, with the CBD leading Nashville's tech scene. The tech industry claims the largest percentage of projected IT growth in Tennessee.

Venture capital funding in Nashville has increased consistently over the past three years, reaching $153 million in 2014. Looking ahead, the consistent increase in venture capital and the introduction of extremely fast internet should foster innovation and attract additional tech companies. Nashville also ranks highly as a city for tech employers to consider, based on its job growth, tech talent and affordability, as well as the projected continued growth.

“The tech movement has affected Nashville's real estate ecosystem, as landlords are adopting creative-minded workplaces to appeal to tech and creative tenants, redeveloping secondary spaces and warehouses for example,” says Kulinski. The demand for creative space is on the rise as more tech companies and tech talent choose Nashville.”