Q1 2013 | MULTI-FAMILY
NASHVILLE
MARKET REPORT
Music City’s Multifamily Starts 2013 with New Supply
New supply and growth in single-family home sales contributed to a minor dip in Nashville’s
multifamily occupancy during first quarter 2013. Nashville continues to maintain extremely resilient
occupancy rates in the multifamily sector. However, occupancy was calculated at 94% at the close of
first quarter 2013, the first time in nearly two years this rate has dipped below 95%. Additionally, net
move-outs within existing apartments contributed to a 0.2% occupancy decline.

Nashville’s new supply consisted of six multifamily developments, all of which completed construction
in the first quarter. Nashville’s total supply of 537-units is accounted for by the following new
developments: Elliston 23 with 331-units; Note16 with 86-units; Fatherland Flats with 48-units and
Uptown Flats with 72-units. The Cool Springs/Franklin market south of Nashville saw growth of
330-units apartment units comprised of the following: Bell Historic Franklin with 218-unit and Dwell
at McEwen II with 112-units.
Updated April 2013
1Q NASHVILLE MULTIFAMILY
SNAPSHOT
RATE
Existing units
110,158
Quarterly supply
867
Year-to-date supply
The conclusion of first quarter 2013 showed that Nashville’s multifamily demand met market supply.
First quarter’s multifamily rental rate averaged $864 per month, which exceeds the U.S. average.
This rental rate also represents a net gain of 2.2% from Q1 2012.
867
Occupancy current rate
94.9%
Quarterly occupancy change
-0.2%
Monthly rent
$864
Rent per square foot
$0.894
Quarterly rent change
Multifamily growth is a reflection of Music City’s diverse economy with healthcare, education and a
strong business community contributing. Revised job growth data showed Nashville added 24,800
jobs at the conclusion of fourth quarter 2012. Nashville’s 2012 job growth was the second largest
upward revision in the United States as a whole. Nashville was also recognized as the 10th best city
in the United States for retirement according to NerdWallet.com.
-0.2
Source: MPF Research, Real Data
Six multifamily projects are currently under construction in Nashville. These projects include 296unit Pine Street Flats, 200-unit Park 25, 244-unit West End Village and 90-unit 12 South Lofts.
Because of projected delivery of this new supply for 2013, occupancy rates in Nashville are expected
to dip in the year ahead as this new product is absorbed by existing and future market demand. By
December 2013, 2,677 units are expected to be delivered in Nashville. Rent growth is also predicted
to stabilize as these new developments gain tenants.
HISTORICAL APARTMENT OCCUPANCY
HISTORICAL OCCUPANCY RATES
HISTORICAL RENTAL RATES
$870
$860
96.4%
$850
$840
94.8%
$830
$820
93.2%
$810
$800
91.6%
$790
$780
90.0%
1Q
11
1Q
12
1Q
13
1Q
14
Source: MPF Research, Real Data
www.colliers.com/nashville
$770
1Q
11
1Q
12
1Q
13
1Q
14
Source: MPF Research, Real Data
MARKET REPORT | Q1 2013 | MULTI-FAMILY | NASHVILLE
UPDATE: LARGEST TRANSACTIONS IN THE MARKET IN 1Q 2013
SALES ACTIVITY
PROPERTY
BUYER
SALE PRICE
SIZE SF
SALE DATE
SUBMARKET
Viera Cool Springs Apartments
Viera Holdings, LLC
$44,000,000
468-unit
3/7/2013
Cool Springs
Metropolitan Apartments
America First Real Estate Group
$33,000,000
216-unit
2/26/2013
West End
Valley Brook Apartments
Evergreen Real Estate
$9,500,000
248-unit
3/4/2013
Brentwood
2151 Acklen Avenue
Mcgowan Family LP
$1,450,000
8,952 SF
2/4/2013
Green Hills/Music Row
SUBMARKET OCCUPANCY RANKINGS
•
MONTHLY RENT
SUBMARKET
OCCUPANCY %
SUBMARKET
RATE
West Nashville
96.3%
Central Nashville
$1,350
Central Nashville
96.1%
Franklin/Williamson County
$1,168
Murfreesboro/Rutherford County
95.8%
West Nashville
$941
South Nashville
95.6%
Murfreesboro/Rutherford County
$894
Far East Nashvillle/Wilson County
95.3%
Sumner County
$823
Source: MPF Research, Real Data
Source: MPF Research, Real Data
United States: 147
Canada: 37
Latin America: 19
Asia Pacific: 201
EMEA: 118
KELSEY MORGAN
ROBERTSON
DAVIDSON
522 offices in
62 countries on
6 continents
Director of Research
DIR +1 615 850 2758
WILSON
COLLIERS INTERNATIONAL
NASHVILLE
300 Broadway
Nashville, TN 37201
WILLIAMSON
RUTHERFORD
DIR +1 615 850 2700
FAX +1 615 244 2957
www.colliers.com
This market report is a research document of
Colliers International. Information herein has
been deemed reliable and no representation is
made as to the accuracy thereof. Colliers
International-Nashville, Inc., and certain of its
subsidiaries, is an independently owned and
operated business and a member firm of Colliers
International Property Consultants, an affiliation
of independent companies with over 522 offices
throughout more than 62 countries worldwide.
Accelerating success.
www.colliers.com/nashville