Commercial Real Estate

Commercial Real Estate

Chatt Choices™

Pointe Property Group

Pointe Property Group

CS.MakingOfADistrict

The Making of a District – CityScope

Full Steam Ahead

Chattanooga is good for business. Whether it’s because of the beautiful surroundings, high-speed internet, favorable business climate, or prime location near major rail, interstate, and waterway systems, both individuals and businesses are continually looking to call the Scenic City home. And with more people working and living in Chattanooga, space of all sorts – from industrial and office to retail and hotel – is constantly evolving. 

 

Manufacturing and logistics companies have long been a mainstay of the local economy thanks to the convergence of numerous transportation options. Demand for industrial spaces where goods can be made or housed has left most of the major industrial parks around the city with little to no vacancies, and conversations continue about converting McDonald Farm off of Highway 27 into a new industrial park. In the meantime, Southern Champion Tray is moving forward on adding more than 1 million square feet to its operations at Centre South Riverport, and Nichols Fleet Equipment has intentions to purchase an additional nine acres for its expansion at the same industrial park. Nippon Paint is still hard at work on its $61 million, 30-acre plant, while Volkswagen continues to work toward its goal of beginning electric vehicle production at its expanded 3.4 million-square-foot factory. 

 

Manufacturing and logistics companies have long been a mainstay of the local economy thanks to the convergence of numerous transportation options. Demand for industrial spaces where goods can be made or housed has left most of the major industrial parks around the city with little to no vacancies, and conversations continue about converting McDonald Farm off of Highway 27 into a new industrial park. In the meantime, Southern Champion Tray is moving forward on adding more than 1 million square feet to its operations at Centre South Riverport, and Nichols Fleet Equipment has intentions to purchase an additional nine acres for its expansion at the same industrial park. Nippon Paint is still hard at work on its $61 million, 30-acre plant, while Volkswagen continues to work toward its goal of beginning electric vehicle production at its expanded 3.4 million-square-foot factory. 

 

Developers are also hard at work on The Bend, an up-and-coming 120-acre mixed-use district. Anchored by newcomer Novonix, a battery materials maker, plans for the site include restaurants, boat slips, green space, shops, and even a hotel. While the full project is expected to take the better part of a decade, if approved, work will start in spring 2022 on an accompanying office building that would be the tallest of its kind erected in Chattanooga in over 40 years. The proposed 10-story office building would be a welcomed addition to the community as the vacancy rate for office space was a low 4.3% at the end of the third quarter of 2021. In fact, the National Association of Realtors identified Chattanooga as being among the top 10 cities nationally with the strongest office market conditions. 

 

With the burgeoning industrial and office sectors, the need for more multifamily housing has resulted in several new developments around the city. The intersection of Rossville Boulevard and Main Street welcomed the Burnside building in 2021, which added 33 apartments and a restaurant space with additional room for future retail and office space. On the other side of the river, the Northshore neighborhood has a proposed 300-unit apartment that, if approved, would begin construction by the end of 2022. Another project encompassing the addition of apartments and office space is slated for Cherokee Boulevard and Somerville Avenue. Meanwhile, a $40 million, 256-unit apartment complex is slated to come online in Ooltewah in 2022. 

 

As commerce in the Chattanooga area continues to grow and tourism returns following the pandemic, hospitality groups are continuing to invest in the city. Ooltewah welcomed a new stayAPT Suites hotel in early 2021, and Hixson and East Ridge both expect to add a TownePlace Suites hotel by the end of 2022. The Hamilton Place area is projected to boast a new Element by Westin hotel by the end of the year as well. These accommodations work to support the tourism industry that is yet another crucial sector in the local economy.

 

Whether it’s expanding logistics companies, additional housing for those new to the city, or simply more places for out-of-towners to stay when visiting area attractions, Chattanooga’s commercial real estate landscape is a flurry of activity and is poised for continued growth.

The Pointe Center

Full Steam Ahead

Chattanooga is good for business. Whether it’s because of the beautiful surroundings, high-speed internet, favorable business climate, or prime location near major rail, interstate, and waterway systems, both individuals and businesses are continually looking to call the Scenic City home. And with more people working and living in Chattanooga, space of all sorts – from industrial and office to retail and hotel – is constantly evolving.

 

Manufacturing and logistics companies have long been a mainstay of the local economy thanks to the convergence of numerous transportation options. Demand for industrial spaces where goods can be made or housed has left most of the major industrial parks around the city with little to no vacancies, and conversations continue about converting McDonald Farm off of Highway 27 into a new industrial park. In the meantime, Southern Champion Tray is moving forward on adding more than 1 million square feet to its operations at Centre South Riverport, and Nichols Fleet Equipment has intentions to purchase an additional nine acres for its expansion at the same industrial park. Nippon Paint is still hard at work on its $61 million, 30-acre plant, while Volkswagen continues to work toward its goal of beginning electric vehicle production at its expanded 3.4 million-square-foot factory.

 

Manufacturing and logistics companies have long been a mainstay of the local economy thanks to the convergence of numerous transportation options. Demand for industrial spaces where goods can be made or housed has left most of the major industrial parks around the city with little to no vacancies, and conversations continue about converting McDonald Farm off of Highway 27 into a new industrial park. In the meantime, Southern Champion Tray is moving forward on adding more than 1 million square feet to its operations at Centre South Riverport, and Nichols Fleet Equipment has intentions to purchase an additional nine acres for its expansion at the same industrial park. Nippon Paint is still hard at work on its $61 million, 30-acre plant, while Volkswagen continues to work toward its goal of beginning electric vehicle production at its expanded 3.4 million-square-foot factory.

 

Developers are also hard at work on The Bend, an up-and-coming 120-acre mixed-use district. Anchored by newcomer Novonix, a battery materials maker, plans for the site include restaurants, boat slips, green space, shops, and even a hotel. While the full project is expected to take the better part of a decade, if approved, work will start in spring 2022 on an accompanying office building that would be the tallest of its kind erected in Chattanooga in over 40 years. The proposed 10-story office building would be a welcomed addition to the community as the vacancy rate for office space was a low 4.3% at the end of the third quarter of 2021. In fact, the National Association of Realtors identified Chattanooga as being among the top 10 cities nationally with the strongest office market conditions.

 

With the burgeoning industrial and office sectors, the need for more multifamily housing has resulted in several new developments around the city. The intersection of Rossville Boulevard and Main Street welcomed the Burnside building in 2021, which added 33 apartments and a restaurant space with additional room for future retail and office space. On the other side of the river, the Northshore neighborhood has a proposed 300-unit apartment that, if approved, would begin construction by the end of 2022. Another project encompassing the addition of apartments and office space is slated for Cherokee Boulevard and Somerville Avenue. Meanwhile, a $40 million, 256-unit apartment complex is slated to come online in Ooltewah in 2022.

 

As commerce in the Chattanooga area continues to grow and tourism returns following the pandemic, hospitality groups are continuing to invest in the city. Ooltewah welcomed a new stayAPT Suites hotel in early 2021, and Hixson and East Ridge both expect to add a TownePlace Suites hotel by the end of 2022. The Hamilton Place area is projected to boast a new Element by Westin hotel by the end of the year as well. These accommodations work to support the tourism industry that is yet another crucial sector in the local economy.

 

Whether it’s expanding logistics companies, additional housing for those new to the city, or simply more places for out-of-towners to stay when visiting area attractions, Chattanooga’s commercial real estate landscape is a flurry of activity and is poised for continued growth.