Oracle is Approved for One of Nashville’s Largest Real Estate Developments
Metro’s City Council approved Oracle’s expansion plan during its last town hall meeting, which is considered by some to mark the,“Biggest economic deal ever made in Tennessee.” The tech giant has locked its sights on the east riverbank of Music City’s industrial riverfront and can now begin a more detailed design for the 65-acre campus. The large-scale, private company investment with no additional cost to taxpayers is a huge win for the city of Nashville. Mayor John Cooper spoke out after the vote last month, claiming that, “This is the largest private investment and the largest job creation deal in our history – all with no expense in our budget and no new debt.” With the company projecting to add 8,500 jobs to the city by 2031 with an annual average wage of $110,000, the surrounding real estate market is bound to be flooded with developers and investors alike.
The Expansion Comes With Weighted Criticism From Community Advocacy Groups
While the Metro City planning committee offered overwhelming support to Oracle on its expansion plans, some council members and local activists have voiced their concerns about the company’s proposed job creation and commitment to diversity. However, it was mainly the corporation’s plan to address affordable housing with the booming workforce that garnered the most attention. This area of concern led the Metro government to signal its intent to use half of the annual property tax revenue generated from the site to pay for affordable housing, in addition to any funding that had already been allocated for that purpose in the budget. However, Oracle’s deal includes a 25-year, 50% property tax discount in exchange for the company’s upfront $175 million investment in public infrastructure near Germantown. With one of the fastest-growing gaps in housing affordability, many of Nashville’s residents took action. The group, called Stand Up Nashville, sent 20 questions about the Oracle deal to the Mayor’s Office, challenging the way Metro government does business with the tech company, and demanding answers to the affordable housing crisis and the hiring of many minority workers.
Leaders Full of Optimism Surrounding the Next Decade of Growth and Prosperity
Many Metro council members believe that this deal could potentially attract other tech giants to land in Nashville as well. Mary Carolyn Roberts said, “We are in a position to have a deal-changer in Nashville.” And she’s not wrong. Just three years ago, Amazon announced its plans to open up an east coast logistics hub in the heart of the city due to the favorable terms the city was offering. With 2,500 new jobs and an expected completion date of the end of 2021 for the hub, it’s no surprise the housing market is on fire right now. While it’s interesting for lifelong Nashville residents to see where the city is heading, Oracle’s choice is no real surprise. Nashville provides access to world-class higher education institutions and a talented workforce, boasts a diverse population with a vibrant culture, has a high quality of life, and is a top destination for new employees.
What’s in Store For the Real Estate Market as a Result of Oracle’s Announcement?
If you have lived in Nashville for any length of time, you’ll know that the housing market did not always look like it does now. With current sellers receiving multiple cash offers $20-60k above asking price on their home before it even hits the market – you get a glimpse into Nashville’s real estate future now that the city is a top contender for corporate investment. While the state’s attractive, lenient tax laws make it a target for companies looking to expand, there’s a downside in the form of housing market inflation. This is going to make trying to buy a home in the greater Nashville area extremely difficult and will likely result in multiple bidding wars with investors and other home buyers for overpriced pieces of property. And although the Metro government has advised it will use half of the annual property tax revenue generated from Oracle’s build site, the actual dedication of funds will be at the council’s discretion. Some council members voiced their concerns fearing that the historic development may drive up the cost of living in Nashville and force out low-income families.
As an agent myself, I can already see this happening. A house pops up for sale on any MLS site and it’s already under contract before you can click on it. Every neighborhood across Nashville is being gentrified, leading to families moving out of their homes because the price they’re given for their home is too good to refuse.
How You Can Combat an All-Out Bidding War
Luckily enough our team at Hinge Realty has a wide array of connections throughout the industry to help in negotiating deals for up-and-coming homes before they hit the market. Our seasoned workforce scours the market daily to find out what’s coming down the pipeline and works on our clients’ behalf to secure a great deal. To find out more about how we can help you find your dream home without paying an exorbitant amount, give us a call at 615-794-1411 to see how we can help satisfy all your housing needs!