Nashville’s real estate market is set for an exciting year in 2025. Despite high prices and lingering challenges, the city’s commercial construction outlook remains strong. According to a recent article from The Tennessean and the 2025 U.S. Emerging Trends in Real Estate report, Nashville ranks in the top five markets to watch. The resilience of the market, paired with the ongoing recovery in commercial real estate, continues to position Music City as a prime location for development.
At Crain Construction, we’ve already seen this momentum firsthand. Our pre-construction team is actively engaged in a variety of projects, and we’re excited about the opportunities on the horizon. However, as with any market, Nashville presents unique challenges that developers should anticipate.
Key Insights for Developers Tackling Nashville Projects
Here’s what we think you need to know to confidently plan your next project:
1. Planning for Permits: Navigating Nashville’s Evolving Requirements
As Nashville continues its rapid growth, city leaders are focused on managing smart and sustainable development. This means permitting and zoning processes are evolving to meet the city’s long-term goals. For developers, this presents both opportunities and hurdles.
Permitting in Nashville remains a lengthy process, often requiring careful coordination and patience. Rezoning adds another layer of complexity, sometimes introducing additional requirements or adjustments that developers must address before moving forward. While these regulations are designed to promote responsible development, they can significantly impact project timelines.
That’s why it’s important to partner with a construction team that understands the local landscape. Crain helps clients navigate these processes by leveraging our experience and relationships with city officials. These existing connections allow us to anticipate potential roadblocks and proactively address them to keep projects on track.
2. Material Matters: What Developers Should Know About Supply Chain Trends
Although the construction industry has made strides in recovering from COVID-era supply chain disruptions, challenges persist. Certain specialized components, especially in the mechanical and electrical trades, continue to experience long lead times. While not as widespread as before, these delays still require strategic planning.
Procurement has become a key focus for developers and construction teams alike. At Crain, we emphasize intentional and strategic procurement strategies to ensure materials and components are ordered early and delivered on time. This approach helps minimize delays and keeps projects moving forward, even when supply chain issues arise.
3. Potential Labor Shortages: Securing the Best Teams for Your Nashville Project
With Nashville ranked as a top real estate market, developers can expect an uptick in construction activity across the city. While this is great news for the market, it also means heightened competition for skilled labor.
Labor shortages remain a challenge for the construction industry, particularly when it comes to securing top-tier subcontractors and trade partners. At Crain, we’ve developed strong relationships with our trade partners, which allows us to secure skilled labor for every project. Our long history in Nashville has helped us build a reliable list of subcontractors we can tap for projects based on their expertise and availability, ensuring each project is staffed by the right team.
Our intentional approach to labor management helps mitigate delays and ensures high-quality work, even during busy construction periods. Developers who choose partners with strong trade relationships will be better equipped to navigate this competitive environment.
Ready to Build in 2025? Let’s Talk.
Nashville’s commercial construction market is set to thrive in 2025, but success will depend on careful planning and informed decision-making. From understanding the permitting and zoning landscape to proactively addressing supply chain and labor challenges, developers must be ready to navigate the unique aspects of this dynamic city.
At Crain Construction, we pride ourselves on helping developers confidently plan and execute their projects, no matter their complexity. If you’re thinking about starting a project in 2025, we’d love to share more about our approach and discuss how we can help set your project up for success. Connect with our team today to get started.
