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Navigating What's Next for Nashville's Commercial Real Estate Sector

To Learn More from the Colliers CRE Vitality Index

Colliers Nashville CRE Vitality Index Tackles Economic Uncertainty


NASHVILLE, Tenn. (February 23, 2023) – Nashville is navigating through uncertain economic times for 2023, according to the latest findings of the Colliers Nashville Commercial Real Estate Vitality Index 2022 year-end results. The Index shows the commercial real estate sector remained steady during the third quarter of 2022, while the fourth quarter experienced a minor decline of 4 points resulting in a total 5-point decrease for the year. Despite this decrease, the Nashville Index remains at 21 basis points higher in Q4 2022 than in Q4 2020.


The Colliers Index, launched in January of 2019, uses key economic indicators to track the health and vitality of Middle Tennessee’s commercial real estate sector from 2001 to the present. These indicators include local & regional budgets, rent escalations, de-escalations, job growth, vacancies, population growth, gross domestic product, market sentiment, investment, and other factors. The combined variables factor into a weighted algorithm that creates an accurate measurement tool to monitor the relative health of Nashville’s commercial real estate sector over time. 

As we navigate what’s next for 2023, there are several key drivers to consider for what’s impacting Nashville’s commercial real estate environment. Nashville is not immune to global and national indicators, but local indicators contribute to Nashville’s resiliency. Key contributing drivers include: 

Economic uncertainty – Market expectations point to an upcoming recession, but confirmation remains uncertain as top economists weigh in on the state of the economy and disagree on the trajectory of the GDP. One certainty is that as inflation begins to cool and level out, the state of the market will be restructured.    

A slowdown in permitting – Commercial building permits declined in 2022 by 2% from the previous year. Along with this decline, several office and mixed-use developments will require significant pre-leasing to kick off construction.

Offsetting factors – Several indicators contribute to the health of Nashville’s economy, including population growth, investment, and the hospitality industry. With Nashville experiencing substantial population growth of over 20% in a five-year period, the demand for apartment residency is driving the need for more multifamily assets. Core Nashville high-profile and land properties are trading at record-breaking prices, with investment volumes for multifamily topping $6.1B in 2022. The hospitality industry experienced visitor spending of $8.8 billion in 2022, Nashville’s highest visitor spending volume to date, while Music City Center contributed a direct economic impact of $382 million. 

Colliers Nashville hosted an event at CMA Headquarters, Nashville, on Thursday, February 23, 2023, where the company presented the Colliers Index 2022 year-end findings. A discussion was held between entertainment and hospitality industry experts who provided their insights on where the direction of Nashville’s industry, respectively, is headed for 2023.

Industry Leaders included:

-  Max R. Goldberg, Co-Owner of Strategic Hospitality
-  Deana Ivey, President of Nashville Convention & Visitors Corp
-  Jan Freitag, National Director of Hospitality Analytics at CoStar Group
-  Bill Miller, CEO | Founder of Icon Entertainment


Navigating What's Next for Nashville's Commercial Real Estate Sector

To Learn More from the Colliers CRE Vitality Index
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Katie Lester

Research Director



Katie joined Colliers in the fall of 2014. She works closely with her advisors, third-party data sources, sales associates and members of the marketing staff to conduct high quality and accurate market analysis, research and reporting for the company and Colliers USA.

Katie plans and executes the company’s research strategy including database creation, management and maintenance, data interpretation, presentation, and marketing of the data, economic and financial analysis, and Colliers International Quarterly Reports. In addition, she is responsible for obtaining the market and industry data for market report production and distribution and executes web searches for pertinent data and information related to research and analysis of local, regional and national trends that influence the commercial real estate market.


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Danielle Henderson

Senior Marketing Specialist


As Senior Marketing Specialist for the Colliers Nashville office, Danielle is responsible for overseeing the firm's comprehensive digital and brand marketing strategy – promoting Colliers as the leading expert in the commercial real estate industry for the Nashville market. She serves as the point person responsible for the firm's web publishing and content development, social media marketing and platform growth, public relations, and building strategic email marketing initiatives. Danielle is responsible for internal communications directing the broker teams on valuable resources to the company's brand guidelines, internal products, and available services – ensuring adherence to Colliers' corporate standards for all high-quality print and digital marketing collateral produced by the firm.

Danielle has 12+ years of marketing experience in the commercial real estate industry. Before joining the Colliers team, Danielle worked for CBRE as a Client Services Specialist, where she provided marketing and administrative support to a brokerage team who specialized in representing owners and users of office products. During her tenure with CBRE, Danielle earned her affiliate real estate license and was awarded support staff employee of the year.

Danielle earned a Bachelor of Science in communication from Middle Tennessee State University, graduating with honors. Dedicated to furthering her communication education and advancing her marketing skill set, she earned a Professional Certified Marketer designation and a Certified Digital Marketing Professional designation through the American Marketing Association (AMA) and Digital Marketing Institute (DMI) partnership program. She has also completed six credit hours through Austin Peay State University's graduate program in communication. Danielle is an active member of AMA and their local Nashville chapter.

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