Derek English: Commercial Real Estate Continues To Look Up

Tuesday, May 31, 2022 - by Derek English, president, Greater Chattanooga Realtors

Real estate is so much more than single-family homes. From multifamily, mixed use, and hospitality to office, industrial, and retail, commercial real estate touches all aspects of a community. And while it might seem like a foreign idea now, commercial real estate really took a hit during 2020 and only started recovering in 2021. Let’s take a look at where this sector was and the hopeful signs of where it’s going.

The National Association of Realtors’ Commercial Real Estate Metro Market Report for Q1 2022 shows that the greater Chattanooga’s market is stronger compared to the overall U.S. market.
NAR’s research identified the following 16 markets as the hottest in commercial real estate in the first quarter. While Chattanooga wasn’t in the top 16, our neighbors in Nashville and Atlanta were, and being located between the two means our commercial market is recovering and thriving as well.

NAR’s research included 25 variables that reflect a metro area’s economic conditions, demographics, and employment. Considerations included job growth, wage increases, and population growth, as well as market conditions on vacancy rates, absorption, rent growth, cap rates, and more. An index above 50 means market conditions are stronger than nationally, and an index below 50 means local market conditions are weaker than nationally. Greater Chattanooga scored a 56 on this index.

There are hopeful signs for commercial real estate throughout the country. Brandon Hardin, an NAR research economist, reported that retail is showing excellent signs of growth, with Q1 posting sizable gains in employment and wages and actually exceeding 2019 levels. Increased income opens the potential for more consumer spending, Hardin noted, adding that data early in the year is already demonstrating this growth.

Retail sales showed a sharp year-over-year increase in February, led by gas stations at 37 percent, food and beverage at 33 percent, and clothing stores at 30 percent. “Consumers are feeling better about returning to pre-pandemic activities,” Hardin said. “People are going out to dinner, going out to watch sports.”

Whether you’re looking for commercial space for a business, or a home for your family, utilizing the services of a realtor remains the best way to ensure that you have the expert advice needed to make an informed purchase. Realtors work for our clients and community every day. That’s Who We R.


2-Story Office Building In East Ridge Sells For $1.3 Million

Real Estate Transfers For June 23-29

Consumer Alert: Scam Home Warranty Letters


A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. ... (click for more)

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)

The Division of Consumer Affairs in the Tennessee Attorney General’s Office is warning homeowners about a home warranty scam. The letter urges Tennessee homeowners to purchase a home warranty ... (click for more)



Real Estate

2-Story Office Building In East Ridge Sells For $1.3 Million

A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. The sale was to T4 Llc from Nandlal Khatri. (click for more)

Real Estate Transfers For June 23-29

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) in ... (click for more)

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Opinion

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