{"id":1004658062,"date":"2023-04-21T03:45:11","date_gmt":"2023-04-21T11:45:11","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004658062"},"modified":"2023-04-25T23:44:17","modified_gmt":"2023-04-26T07:44:17","slug":"top-5-markets-for-office-construction-south","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/top-5-markets-for-office-construction-south\/","title":{"rendered":"Top 5 Markets for Office Construction in the South"},"content":{"rendered":"<div id=\"attachment_1004658063\" style=\"width: 837px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004658063\" data-attachment-id=\"1004658063\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/top-5-markets-for-office-construction-south\/top-5-markets-for-office-construction-in-the-south\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg\" data-orig-size=\"827,400\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Top 5 Markets for Office Construction in the South\" data-image-description=\"&lt;p&gt;https:\/\/pixabay.com\/de\/photos\/architektur-baustellen-3254023\/&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Image by Paul Brennan via Pixabay&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg?w=827\" class=\"wp-image-1004658063 size-full\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg\" alt=\"commercialedge the south office\" width=\"827\" height=\"400\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg 827w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg?resize=300,145 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Top-5-Markets-for-Office-Construction-in-the-South.jpg?resize=768,371 768w\" sizes=\"auto, (max-width: 827px) 100vw, 827px\" \/><\/a><p id=\"caption-attachment-1004658063\" class=\"wp-caption-text\"><em>Image by Paul Brennan via Pixabay<\/em><\/p><\/div>\n<p>The states from the South region\u2014listed as&nbsp;Arkansas, Alabama, Kentucky, Louisiana and Mississippi\u2014have diverse economies with a strong footprint in manufacturing. At the same time, the health-care and technology sectors experienced sustained expansion both prior to and following the pandemic. According to <strong>CommercialEdge<\/strong> data, a&nbsp;total of 5.1 million square feet of office space was underway in the region at the end of March, accounting for 3.1 percent of the nation\u2019s total office inventory.<\/p>\n<p>While the South region has historically been a popular destination for retirees, younger people have become increasingly attracted to the area for its lower cost of living and growing job opportunities. According to the latest estimates from the U.S. Census Bureau, the population of these states has been growing since the start of the pandemic, albeit at varying rates. Tennessee and Alabama were popular destinations for people and <a href=\"https:\/\/www.commercialsearch.com\/news\/where-are-most-corporate-relocations-taking-place\/\">businesses moving from other states<\/a>, while Louisiana and Arkansas saw more modest growth.<\/p>\n<p>The demand for office space in these states also varied by location; Nashville, Tenn., <a href=\"https:\/\/www.commercialsearch.com\/news\/top-projects-that-will-reshape-nashville\/\">experienced significant growth in the sector<\/a>, with several large projects currently underway. Meanwhile, some other areas in these states\u2014such as Chattanooga or Knoxville\u2014saw little to no activity in office construction due to factors such as changing workplace trends and economic conditions. Using CommercialEdge data, the table below highlights the top five markets in the region by total under-construction volume as of the end of March.<\/p>\n<p><iframe id=\"datawrapper-chart-F9iV8\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Top 5 Markets for Office Construction in the South\" src=\"https:\/\/datawrapper.dwcdn.net\/F9iV8\/4\/\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\" height=\"276\" frameborder=\"0\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[\"datawrapper-height\"][t]+\"px\";e[r].style.height=i}}}))}();\n<\/script><\/p>\n<h2>1. Nashville, Tenn.<\/h2>\n<div id=\"attachment_1004658074\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004658074\" data-attachment-id=\"1004658074\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/top-5-markets-for-office-construction-south\/mike-fox-pkjmvk0mixm-unsplash-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg\" data-orig-size=\"1000,775\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"mike-fox-pkJmVk0MIxM-unsplash\" data-image-description=\"&lt;p&gt;https:\/\/unsplash.com\/photos\/pkJmVk0MIxM&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Photo by Mike Fox on Unsplash&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg?w=1000\" class=\"wp-image-1004658074 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg?w=300\" alt=\"commercialedge nashville office the south\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg 1000w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/mike-fox-pkJmVk0MIxM-unsplash.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004658074\" class=\"wp-caption-text\"><em>Photo by Mike Fox on Unsplash<\/em><\/p><\/div>\n<p>Thanks to its thriving entertainment industry and growing health-care sector, Nashville is the South region\u2019s <a href=\"https:\/\/www.commercialsearch.com\/news\/nashville-office-market-starts-2023-on-a-strong-note\/\">hottest spot for office development<\/a>. The market tops the list with nearly 3.9 million square feet of office space under construction as of March, spread across 17 properties. This accounts for 6 percent of the total office stock in the metro. Meanwhile, office deliveries year-to-date in March totaled a little over 125,000 square feet.<\/p>\n<p>The largest property underway in the metro was the Amazon Tower, a 566,000-square-foot office building developed by <strong>Southwest Value Partners<\/strong> for the e-commerce giant. The asset will be located within Nashville Yards, an 18-acre mixed-use project rising in the heart of downtown Nashville which will also include the upcoming Pinnacle Tower.<\/p>\n<h2>2. Huntsville, Ala.<\/h2>\n<p>Despite being a relatively smaller market, the Alabama market is witnessing a steady increase in office construction activity. Two properties totaling 238,000 square feet of office space came online in Huntsville in the first three months of the year.<\/p>\n<p>The city's <a href=\"https:\/\/www.commercialsearch.com\/news\/north-americas-hottest-tech-talent-markets\/\">growing technology<\/a> and defense sectors are fueling demand for new office space, making it an attractive market for developers. A total of 616,000 square feet of office space was under construction in the metro at the end of March, accounting for 3.8 percent of the total office stock. The largest office project underway was the Northrop Grumman Buildings, a 262,000-square-foot, two-building complex in Redstone Gateway office park for defense contractor <strong>Northrop Grumman<\/strong>.<\/p>\n<h2>3. Louisville, Ky.<\/h2>\n<div id=\"attachment_1004658081\" style=\"width: 310px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004658081\" data-attachment-id=\"1004658081\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/top-5-markets-for-office-construction-south\/andrew-welch-cbi8e7gnwxc-unsplash\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg\" data-orig-size=\"968,750\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"andrew-welch-cbi8e7GNwxc-unsplash\" data-image-description=\"&lt;p&gt;https:\/\/unsplash.com\/photos\/cbi8e7GNwxc&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Photo by andrew welch on Unsplash&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg?w=968\" class=\"wp-image-1004658081 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg?w=300\" alt=\"commercialedge louisville office the south\" width=\"300\" height=\"232\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg 968w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/andrew-welch-cbi8e7GNwxc-unsplash.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004658081\" class=\"wp-caption-text\"><em>Photo by andrew welch on Unsplash<\/em><\/p><\/div>\n<p>Louisville\u2019s central location within the South region and diverse economy make it an attractive destination for businesses, further driving demand for new office space. Some 368,000 square feet of office space was under construction as of March, accounting for 1.2 percent of the market\u2019s total office stock. Another 50,000 square feet was added to the market\u2019s total inventory year-to-date in March.<\/p>\n<p>The <strong>McMahan Group<\/strong> is currently working on Baptist Healthcare Outpatient Care Center, a 126,800-square-foot primary care hub at 2800 Breckenridge Lane. Construction on the asset broke ground in September 2021, while completion is scheduled for July 2023. <strong>Old National Bank<\/strong> financed construction with a $47.9 million loan, CommercialEdge data shows.<\/p>\n<h2>4. Jackson, Miss.<\/h2>\n<p>The smallest office market on our list is experiencing a notable uptick in office construction activity, largely driven by the expanding health-care and education sectors. Two office properties totaling 182,000 square feet of space were under construction as of March, representing 1.8 percent of the total office stock.<\/p>\n<p>The largest project underway was the Baptist Memorial Healthcare, a 97,000-square-foot physician office in Madison, Miss., developed by <strong>Baptist Health Systems<\/strong> and <strong>The Boldt Cos<\/strong>. The joint venture started work on the property in January 2023 and estimates it will reach completion in the first quarter of 2024.<\/p>\n<h2>5. Memphis, Tenn.<\/h2>\n<p>Memphis, a growing city with a strong economy and thriving business community, rounds out the list with 61,200 square feet of office space underway as of March. What\u2019s more, a 38,000-square-foot office project was completed year-to-date in March, according to CommercialEdge.<\/p>\n<p>In downtown Memphis, <strong>Lennox Cos.<\/strong> is converting a former retail center at 421 Monroe Avenue into a 34,200-square-foot, four-story office building. The roster of tenants will include Spaces, which will provide coworking spaces and meeting rooms for hybrid workers, small businesses and entrepreneurs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Roughly 5 million square feet was underway in the region by March, CommercialEdge data shows.<\/p>\n","protected":false},"author":741,"featured_media":1004658064,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,41288,23891,21742,21747,37301],"tags":[39329,37482,32769,35757,36240],"class_list":["post-1004658062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-rc-listicles","category-national","category-latest","category-office","category-uncategorized","tag-topofthelist","tag-amazon","tag-baptist-health-system","tag-northrop-grumman-corporation","tag-southwest-value-partners"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top 5 Markets for Office Construction in the South<\/title>\n<meta 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