Colliers International Group Inc. deepens its coverage in Nashville with the acquisition of Colliers International Nashville LLC, a former affiliate of the commercial real estate services giant. Colliers has not divulged the financial specifics of the transaction; however, current Colliers Nashville shareholders will benefit from Colliers’ partnership model, which will allow them to maintain equity in the business.
Colliers Nashville comes to the table with a strong reputation, cultivated since its opening in 1938, as well as a solid foundation for evolution under the Colliers umbrella. “The Colliers Nashville business has a long, successful history of operation, through the best and worst of times,” Ryan Kratz, president, Southeast Region-US Brokerage, told Commercial Property Executive. “The business is time-tested, resilient, and poised for continued growth.”
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Catering to commercial real estate investors, developers and occupiers alike, Colliers Nashville provides a full suite of offerings that includes landlord and tenant representation, investment sales brokerage, property management and project management services. With a team of 70 seasoned professionals and a leasing and management portfolio of more than 7 million square feet, the firm is one of the largest commercial real estate firms not just in metropolitan Nashville, but in Middle Tennessee as well. And it endeavors to grow even larger—even in the current climate of uncertainty. “The mutual vision between Colliers International and the Nashville operation for the expansion of this business certainly transcends the events of today,” Kratz said. “Best of all, the Nashville business has exceptional employees and brokers who will aid in this continued growth,” he added.
Monitoring Music City
The Nashville office market is taking its hits due to COVID-19, just like most other office markets across the country. Deliveries, new sublease space and companies’ reassessment of space needs have conspired to push the overall average vacancy rate up to 9.8 percent and create negative net absorption totaling 44,400 square feet in the second quarter, according to a report by Colliers.
But, as Kratz noted, Nashville has its own history of resiliency. “Nashville typically enters recessions late in the cycle and exits recessions on the front end of recovery. Today, we continue to see investments flow in and developments launch,” he told CPE. “Investors and users are taking the long view and they see Nashville as one of the most vibrant economies now and into the near-term future.”
Like Colliers Nashville, the City of Nashville has a strong foundation from which to rebound in the post-pandemic world. “Nashville’s economy is diversified, spanning health care, higher education, technology, manufacturing, logistics and, of course, music and entertainment,” Kratz added. And as the city continues to attract educated talent, companies such as UBS, Alliance Bernstein, Amazon and many others are locating offices and facilities there, according to Kratz.