Cookeville’s commercial real estate market gained momentum over the last six to eight weeks as local companies pursued expansion and industrial properties attracted increased interest.
Local commercial real estate broker Craig Hughes said larger companies made significant moves earlier this year. Local and regional activity lagged from roughly March through August.
“What’s been exciting about the last probably 90 days in activity is just the, the breadth of the offering,” Hughes said, “Everything kind of across the market from large industrial, mid-sized industrial, light industrial to even office spaces and some medical spaces have seen traction.”
Hughes said much of the local activity comes from companies seeking additional square footage, multiple locations or other opportunities to expand. Small industrial properties under 10,000 square feet have attracted interest, while national retailers have also explored development opportunities on undeveloped land.
Hughes said existing commercial properties have also drawn increased attention as businesses weigh the cost and uncertainty of constructing new facilities.
“There’s a lot of hesitancy to build new,” Hughes said. “So existing footprints, existing real estate, uh, has been a lot more attractive just because of the time delays and then also the unknown, delivered pricing on new construction.”
Hughes said some sellers have become more flexible during negotiations. Owner financing has also become more common among sellers who own their properties outright or carry low-interest debt, providing another way to structure deals.
Hughes said Industrial and warehouse demand remains particularly strong. Hughes said his company has activity on almost every industrial property it represents, with some interest coming from companies outside the region.
“What’s exciting about it is it’s a lot of, of growth from other regions,” Hughes said. “It’s companies looking to reposition, take advantage of where we’re situated in Tennessee but also in the country that it serves as a distribution point and a, a manufacturing hub.”
Hughes said the current movement contrasts with 2023, when larger companies began reducing warehouse space before softer conditions spread to local businesses and other portions of the economy.
“It feels like we are on the reverse of that where, uh, the large properties, large companies are making moves again and it could go the other way but for right now the momentum indicates that the next six, eight months should bleed over into every other aspect of our, local economy including housing,” Hughes said.
Hughes said Cookeville’s location along Interstate 40 continues to strengthen its appeal to companies serving multiple markets. He said one company considering relocation viewed Cookeville as preferable to Nashville or Knoxville because of its central location.
“They want to be in and around Cookeville and the I-40 corridor,” Hughes said.
Hughes cautioned that previous bursts of commercial activity have faded. He said continued industrial expansion, investment and hiring would provide a positive indicator for additional growth in areas such as restaurants, shopping centers and local incomes.