Construction has officially begun on Fifth + Broadway, one of the largest single mixed-use developments in the history of Nashville and the state of Tennessee. The transformative downtown project, which will replace the 6.2-acre Nashville Convention Center (rendered obsolete with the opening of the Music City Center in 2013), will deliver 235,000 SF of strategically important retail and entertainment (including the National Museum for African American Music), 385,000 SF of Class-A office at 501 Commerce, over 350 residential units, and more than 2,000 parking spaces. The project is spearheaded by San Diego, Calif.-based developer OliverMcMillan and Nashville, Tenn.-based developer Spectrum | Emery.
“Fifth + Broadway is the pivotal development for Nashville’s urban core,” said Mayor Megan Barry. “We believe this project elevates the Music City brand, delivering world class retail and entertainment, as well as the first of its kind National Museum of African American Music, all in the heart of downtown. As it sits at the heart of our City and at the center of our business and entertainment district, Fifth + Broadway will serve to increase the walkability, connectivity and comprehensive offerings of our city.”
Of critical importance is the development’s 235,000 SF of retail and entertainment, which at delivery will be the largest collection of shopping in downtown. Downtown Nashville retail space is currently experiencing overwhelming demand; the market only has 2.9% retail space vacancy per Tom Turner of the Downtown Nashville Partnership.
“There is very little space remaining for downtown retail, leaving many interested retailers unable to fulfill their needs,” added Turner. “Fifth + Broadway will be the greatest concentration of retail downtown; delivering the flexible options that retailers require and consumers have been demanding.”
Largely driving that demand is Nashville’s record hot streak of tourism and growth. 13.9 million visitors came to Nashville in 2016, up from the record-breaking 13.5 million in 2015, and annual visitor spending now exceeds $5.7 billion. Nashville has been listed as a Top Destination in the World by major travel publications for 5 years straight, including making Travel + Leisure’s 50 Best Places to Travel in 2017 as well as Thrillest’s #1 U.S. City to Spend a Weekend.
“It is no secret that Nashville’s hospitality industry has been on a record-setting run,” said Butch Spyridon, president and CEO of the Nashville Convention & Visitors Corp. “The challenge for us now is to sustain this incredible momentum. Our facilities, hotels, venues, attractions and restaurants have all enhanced our attractiveness as a destination. With the development at Fifth + Broadway, retail can now be added to the outstanding offerings in the downtown area and help ensure future success.”
With approximately 7,000 new hotel rooms under construction or in final planning and nearly 13,000 rooms currently proposed, there is increased hotel capacity in the immediate pipeline to meet Music City’s tourism boom which is showing no signs of slowing down.
In addition to tourism, the number of downtown Nashville residents is expected to surpass 14,000 by the end of the 2018, almost triple the approximately 5,000 that lived in the urban core in 2010. This fast rise in residents is mirrored by downtown corporate growth, highlighted by the new headquarters for Bridgestone Americas, Inc. which will bring more than 1,700 dedicated workers within walking distance of the Fifth + Broadway retail center.
Current retail and entertainment tenants already signed on for Fifth + Broadway include a restaurant concept from Nashville restaurateur Tom Morales (ACME, The Southern) and the National Museum of African American Music, the first museum of its kind celebrating the rich tradition of African American music and its influence on all music.
Nobody stands to benefit more from the comprehensive offerings of Fifth + Broadway than the tenants of 501 Commerce, the office building in the development. Companies occupying the premier building will benefit from convenient access, unmatched views, on-site amenities and a highly efficient design, with a target of LEED Silver sustainable infrastructure certification. As part of downtown’s first mixed-use destination, office tenants will have direct access to the shopping and dining, connectivity to an elevated Nashville food market as well as a 20,000 SF rooftop amenity terrace that features dramatic views of downtown.
“501 Commerce will offer corporate tenants the total package when it comes to a first-class, visible location with the added advantage of connectivity and immediate access to downtown Nashville’s greatest concentration of retail and entertainment,” said Rob Lowe of Cushman & Wakefield, who is leading 501 Commerce’s leasing along with Stewart Lyman, also of Cushman & Wakefield. “Walkability and access to urban amenities is what the modern workforce craves, making 501 Commerce a dream for HR personnel charged with maximizing recruitment and retention. OliverMcMillan and Spectrum | Emery have designed a truly unique office opportunity that will set the bar for urban development in Nashville going forward.”
The groundbreaking marks the start of work on the project by construction manager Skanska. Fifth + Broadway’s retail and its office building, 501 Commerce, are expected to be complete by late 2019.