So there has been a ton of speculation from the East Nashville community on what will take the place of the vacant Walmart on Gallatin Pk. Well we have the answers and you may be surprised!
Keeping the Competition Out
What you may not know is that commercial real estate can have a lot of special stipulations attached to the sale of a property. Walmart, the retail giant, is no exception. When we first heard of the property going up for sale, everyone wanted to know, is it going to be a Publix? Whole Foods? Trader Joes? Please say yes!
Well, not surprisingly, Walmart put a hard non-compete on who they would accept as a buyer. No superstores, pharmacy, grocery, or other like competitor store would be allowed to take the space. And for good reason. Why would they want to sell a strategic advantage to their competition that would gain market share and hence, take from them future patrons? They wouldn’t! So, sorry guys, its not going to be any type of grocery. Read more on other tactics used with Commercial Real Estate in Corporate Bullying – Dark Secrets of the Development World.
Upscale Retail Coming Soon to East Nashville
With the size and quality of the property, Walmart received a whopping 15 offers for purchase. They were able to narrow it down to 3 finalists. Two of which were retail concepts, and one was an office user. How interesting.
We were wondering if an office user would come to the table with a different take on how to utilize the property. Shared space anyone? Plus, doesn’t East Nashville need more office options? We think so. Well, too bad. Office on the East side will have to wait another day. Unless you are reading this and want to invest or develop office space. Then we can most certainly help. Also, check out one of our current office lease listings located just next door at The Station in East Nashville – a historic renovation and miraculous save from demolition by the hands of Walmart itself.
Walmart however settled on a winning bid, going to an Upscale Retail Development facing the street, with storage and parking located behind. This new development will house luxury designer retailers, that up until now, we have often only visited in other areas of town such as Green Hills or Franklin. More recent upscale retail developments have been seen in similar areas such as Edgehill Village. Just take a look at JCrew, The Men’s Shop and Warby Parker.
*Disclaimer Alert: In Commercial Real Estate nothing is over until the Fat Lady sings. We can make no warranties or representations concerning these sale and development details. At the date of this writing, the Purchase and Sale Agreement is yet to be finalized. This information was given to us by the Selling Agent and may change at any point.
Luxury Living and Gentrification
The newest wave of housing price increases in East Nashville could be to blame for this change. Looking at the evolving demographics in the area, prices continue to climb. We ran this report today with a 2 mile radius from the Walmart site. With an average home price of $385K and $194 / SF, people that can afford luxury items now live in East Nashville. This shift in market is a tell of the reactionary shift to come in the Commercial Real Estate sector.
Walmart’s demographic no longer seems to be as prominent in East Nashville. Why, hello heavy handed Gentrification! And therefore won’t be able to hold on to their position in this neighborhood. In the mean time, out of state buyers have moved in droves to the hip community. With deeper pockets, and more money, a high end retail center would tailor to that new crowd. Just asking for a Publix in the first place is a sign that people want higher end grocery options, and can afford them!
Turnip Truck’s expansion to their new location, and the addition of more infill development, and luxury products are all pointed signs that East Nashville is changing and changing quickly. What does this mean for everyone else? Where will they buy inexpensive groceries, let alone housing? *Yes yes, we know Aldi is right down the road, but for how long? Only time will tell.
Investing in East Nashville Real Estate
If you are of the investment mindset, then this new data should begin informing your decisions. We have the scoop on many projects under foot. Nashville is changing very rapidly, and the markets in various areas could shift with any single large scale project. Sign up for our newsletter to keep abreast of all the goings on, and Contact Us Today to begin “Building a Beautiful South” with us as your advisors.
Photo Credit: Featured Image of Walmart Neighborhood Market at top of post taken from Google Maps, Street View in 2014.
