What’s Hot in Knoxville Commercial Real Estate 2018
After seeing Knoxville thrive in 2017, DPM Care could not be happier that 2018 is shaping up to be another wonderful year for growth and prosperity in our hometown. Here are just a few reasons why we’re optimistic about the business and commercial real estate climate in Knoxville:
- Knoxville is growing. Knoxville is the third-fastest growing metropolitan region in Tennessee. What’s more, we are the only region to grow in consecutive years since 2013. Commercial real estate broker Josh Flory reports that part of this drive in population growth comes from a boom in commercial property sales, which in turn is driving a demand for residential apartments, even as single-family homes remain hot.
- Unemployment is low. With a 4.4% unemployment rate, Knoxville is 0.5% lower than the national average, and there’s reason to be optimistic about future growth.
- Knoxville is affordable. Realtor.com puts Knoxville at number three on their list of affordable urban markets with great property inventory, making it an attractive choice for living and doing business.
Knoxville Commercial Real Estate Update
With these forecasts in mind, what trends are on the horizon in Knoxville for commercial real estate? Here are four changes coming to the city in 2018.
1. High-Profile Sales Are Bringing New Life to Familiar Companies
Discovery Communications surprised the media world with their purchase of Scripps Networks Interactive and plans to move their back-office headquarters to Knoxville, citing low cost of living and lowered expenses over suburban Maryland. They intend to consolidate their Maryland offices into the Knoxville facility but expand jobs and grow their commercial holdings.
Additionally, local theater corporation Regal Cinema was purchased by Cineworld Group, but they are continuing their move to a nine-story building along the riverfront with a ten-year lease from the city. Cineworld intends to keep investing in Regal (and Knoxville by extension).
2. Riverfront Development Is Rejuvenating Business in South Knoxville
Regal Cinema isn’t the only business that finds the South Riverfront district desirable. The scenic riverfront is drawing breweries and coffee shops, with plans for a boat dock and meeting space as well.
Construction along the riverwalk means community-building for South Knoxville. Mayor Rogero announced plans for further revitalization, drawing bicycle, pedestrian, and river traffic to the CityWalk’s commercial areas. The city’s investment in the river area will mean new commercial economic opportunities as the area develops. At least three new businesses opened in just the last year, with the community strategically planning commercial expansion.
3. Knoxville Is Buzzing with Fresh Tech and Data Center Opportunities
In January, SH Data Technologies began work on Knoxville’s first Tier-III data center. They intend to restore the Fort Hill building and add 33,000 square feet of commercial space over and above the 8,000 square feet needed for the data center. Additional phases will add a further 10,000 square feet.
With the facilities drawing from a Tier-IV power source at Knoxville Utilities Board, they are poised to compete with cities like Atlanta and Chicago for data management and protection opportunities. The Knoxville Chamber expects this to be a groundbreaking event to attract relocating companies looking for affordable but modern cities.
A newer name, RDI Technologies, is making news in Knoxville for their rapid growth and reinvestment in Knoxville’s economy. They employ 15 people, but they have already moved three times since 2013 to accommodate their growing business. In addition, they are gaining attention for their products that help with video imaging in machinery. RDI Technologies is a shining emblem of Knoxville’s growing tech scene.
Other companies – such as Review Box, Mom Source Network, and Cirrus Insight – have been credited with giving Knoxville tech-industry cred and they identify Knoxville as a place with the potential for tech growth.
4. Manufacturers Both Large and Small Are Being Drawn to Knoxville
There’s no doubt about it: America’s makers are shaking up commercial spaces in cities, and nowhere is that more apparent than our “Maker City.” Thanks to big names coming to Knox County and business-friendly regulatory changes, Knoxville will see a boost in both traditional manufacturing and modern maker-movement spaces in 2018.
Scapa Healthcare, a big name in wound care and medical technologies, broke ground on a facility in Knox County that will consolidate three of their operating buildings into a single 152,000 square foot space. Construction on the building is expected to end in November. With this new commercial space, Scapa’s employment opportunities will jump by 20% in the greater Knoxville region.
Knoxville is continuing to make good on last year’s Mayor Maker Council adoption of the motto “The Maker City” by creating friendly spaces for craftspeople. By addressing mixed-use zoning laws to make it possible to have spaces that double as places to make and play, commercial spaces in Knoxville are assuming a flexibility and a style that lets both small businesses and neighborhoods flourish. With a well-connected online presence, people can identify new and upcoming businesses in the maker scene with ease.
Knoxville Is Drawing Commercial Growth by Blending the Traditional with the Modern
Here at DPM Care, we love that Knoxville is on a path to economic success by blending traditional commercial industries while also drawing in creative, savvy businesspeople. With fresh technology, facilities, and investment in the city fueling growth, we expect to see incredible gains in Knoxville’s commercial markets in 2018.