Knoxville Commercial and Office Space Overview
A pioneer town that exploded with economic output following the arrival of the railroad in 1855, Knoxville has evolved into a modern, affluent American city that provides a stable bedrock of shipping, manufacturing, entertainment, and education to eastern Tennessee. The third largest city in the state and its original capital, Knoxville’s contribution to the Volunteer State is unmatched despite its secondary status to Nashville and Memphis. Home to the University of Tennessee, over 19,000 businesses, and an assortment of national brands who call the city home, Knoxville provides economic stability and a potential for entrepreneurship that’s rare in the state of Tennessee.
Despite the city’s commitment to growth and development, there’s a scant few hundred open listings in Knoxville at a median size of 450 square feet. But compared to larger cities like Memphis and Nashville, Knoxville is much more affordable and flexible in the commercial real estate market.
Economy of Knoxville
A historic center of wholesale, manufacturing, and distribution in its early days, Knoxville has flourished and adapted in today’s modern economy, serving as a technology, finance, and manufacturing hub for eastern Tennessee. While the city’s median household income is well below the state’s average at $36,331, Knoxville’s reputation as a vital asset to the region is well-established. Home to over 700 manufacturing facilities, half a dozen institutes of higher education, and over 21 million square feet of office space, the city is an important economic driver to the state and surrounding region.
At $173,000, the average home price in Knoxville’s city limits is reasonable for a city its size, making it a likely destination for young professionals and families seeking their first homes. That, combined with the presence of the University of Tennessee, makes Knoxville an attractive modern destination for talented workers seeking to begin their careers.
Trends of Knoxville
The central corridor of Knoxville has seen explosive growth in the last few years, transforming parts of downtown into an unrecognizable state. 26 businesses opened in 2018 alone, creating a revitalized feeling throughout the downtown area and bringing professional services, restaurants, and retail. In fact, the Central Business Improvement District of Knoxville reported double digit growth in revenue from restaurants and retail from 2016-2018.
The city is surprisingly affordable from a residential real estate perspective, rated 81.7/100 in terms of livability by the Council for Community and Economic Research, placing Knoxville as the sixth least expensive place to live in the nation. Combined with the city’s renewed efforts in economic development, Knoxville continues to be an attractive option for those seeking a robust professional environment with a low cost of living - a rarity in today’s modern American city.
Where to Lease Commercial Real Estate in Knoxville
Knoxville’s economic center lies within the downtown corridor, bringing heavy foot traffic and plenty of exposure for national companies, retail, and nightlife companies. But outside of the commercial sector, the neighborhoods of Knoxville provide enough affordable, larger spaces perfect for manufacturing, entertainment, and professional services. Look toward Fort Sanders or South Knoxville for the easiest access to major highways and the Tennessee River for logistics and transportation.
