The Genesis Group Blog

Tech & Real Estate Investment: Spotlight on Chattanooga

The ‘Gig’, Chattanooga, TN is quickly becoming one of the hottest innovation and business hubs in the nation and the local real estate market is already seeing the benefits.

Chattanooga, TN was recently suggested to be one of the best North American cities to invest in by reports and data from entrepreneur publication, G-Code Magazine, The American Bible Society and a University of Toronto professor due to its culture of strong ethics.

This combined with becoming a global magnet for investment, tech entrepreneurs and businesses promises great things ahead for both residential and commercial property owners in TN.

Gig City Real Estate

2010 saw Chattanooga leap into the future with the fastest internet speeds in the world; earning it the nickname ‘Gig City’.

The bold move firmly planted the Tennessee city on the global map and according to CNN gave locals access to gigabyte internet which was as much as 250x faster than the national average.

This massive investment which was part of a $111M funding, along with a local government push to draw in talent and companies has placed the city on endless top lists.

Programs like GeekMove which have promised paid relocation and even second mortgage grants to attract innovative talent have received huge attention.

The end result has meant a huge boost for the local real estate market as well. RealtyTrac reported Chattanooga, TN only had about 50% of the foreclosure activity in January 2014 as the previous year, and 50% of the national average.

The Chattanoogan reports local home values rose 3% between November and December 2013 alone. Statistics from the Greater Chattanooga Association of Realtors and National Association of Realtors (NAR) reveals local homes sales hit a six year high in January 2014, with home prices rising 6.5% year-over-year.

Nashville Casting Call

Nashville isn’t taking its neighbor’s rise to fame laying down either. Back to back reality TV shows have the world firmly fixated on Nashville, TN via their television sets and mobile devices.

Crazy Hearts Nashville, Chasing Nashville and Private Lives of Nashville Wives are just a few of them. This hasn’t escaped the eye of The Wall Street Journal or The Nashville Business Journal which report at least six such shows in the works as we rolled into 2014.

It’s not just the celebrity home buyers that are getting in on the action and are flooding Nashville either. In February 2014 NAR named Nashville, TN as one of the Top 10 Markets with Strongest Employment Growth Since 2011. Now Google has dubbed Nashville to become one of its next high speed internet ‘Fiber’ cities.

Tennessee Commercial Real Estate Outlook

NAR’s most recent commercial real estate forecast paints a positive outlook for growth. Increased home buying activity in Chattanooga and Nashville may take some of the fire out of the multifamily and single family markets due to competition and absorption factors. However, the industrial, office and retail property sectors are all expected to see vacancies drop.

This combined with increased national and global commercial real estate investment and focus on secondary cities like these for growth and higher returns suggests a powerful year for those locking into these investment opportunities now.

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