Hamilton Herald Masthead


Front Page - Friday, June 10, 2022

Commercial real estate continues to look up

Real estate is 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 in 2020 and only started to recover 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 the first quarter of 2022 shows the greater Chattanooga’s market is stronger than the overall U.S. market.

The NAR’s research identified 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 these two means our commercial market is recovering and thriving, as well.

The 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 and cap rates.

An index of greater than 50 means market conditions are stronger than nationally, while an index less than 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.

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%, food and beverage at 33% and clothing stores at 30%.

“Consumers are feeling better about returning to pre-pandemic activities,” Hardin said. “People are going out to dinner and 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 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.

Founded in 1912, Greater Chattanooga Realtors is a regional organization with more than 2,500 members servicing Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a multiple listing service that’s one of approximately 600 MLSs in the country and services more than 2,700 users.