Did you know that one of the most significant predictors of real estate cost is the location of your commercial properties?
If you are in the wrong geography, you could be leaving money on the table while robbing your employees of their most ideal quality of life. How?
Traditional business hubs like NYC and San Francisco are accompanied by expensive overhead costs and regulations that interfere with corporate success. As a result, there has been a migration of top-performing companies away from these cities and to business-friendly states like Tennessee.
How do we know this? As tenant reps, we work with CRE portfolios daily. We have seen how our corporate clients have significantly benefitted from relocations to business-friendly areas like Tennessee. In doing so, they have slashed their budgets from favorable regulations, low living costs, and reasonable office rents.
So if you want to learn more about a premier business-friendly state, read on. We will discuss Tennessee’s business hotspots, including:
Why Relocate to Tennessee?
Tennessee is a right-to-work state whose culture is starkly pro-business. It supports its people and businesses through investments in infrastructure, education, workforce development, and global business relations.
In addition, Tennessee has one of the lowest costs of living metrics in the country. As a result, the power of the dollar is stronger, and consumers are empowered to stimulate local economies freely.
(Cost of Living Map Where the National Average is 100)
Tennessee’s low living costs are partly due to its favorable tax laws. The state has no personal income tax and boasts the lowest state and local taxes paid per capita, according to the Tax Foundation.
In recent years, many companies opened headquarters in Tennessee. These financial and geographic commitments prove that the corporate migration is not a fad. Household names like Mitsubishi, FedEx, and Oracle invested in Tennessee’s business-friendly reputation.
These corporate relocations have further strengthened Tennessee’s state economy, as the companies brought thousands of new job opportunities to the cities in which they moved.
Tennessee offers multiple, prime locations for business, so you can decide which metro area would best fit your company and needs in “The Volunteer State.” No matter which city you choose, you are ensured that living and business costs remain stable and affordable.
Nashville
The city that earned acclaim through its connection to music offers a robust economic climate. Nashville has witnessed incredible expansion in the last few years. It has been noted as the city with the most financial growth out of the country's largest metro areas in 2021.
In addition, Nashville is home to numerous thriving industries, including education, trade, professional services, and hospitality.
Nashville has a strong academic presence as its largest employer is Vanderbilt University and Medical center. Such strong job opportunities contribute to the city’s steady population growth.
With so many companies finding footing in Nashville, those responsible for budgets are singing the city's praises. The CEO of Sinomax explained the reasoning behind their relocation…
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"We chose Nashville, Tennessee for its pro-business, environment, talented workforce, and welcome spirit." - Frank Chen, Sinomax CEO |
Nashville is also one of our nation’s most vibrant cities. It provides a lifestyle rich with art, history, food, sports, and music. It is supported by a strong, diverse, and rapidly- growing educated workforce.
Let’s dive deeper into Nashville’s statistics that seal its business- friendly reputation:
- City Sales Tax – 0%
- Estate Tax – 0%
- Personal Income Tax – 0%
- Class A Office Rent per square foot – $34
- Cost of Living – 95
Memphis
Historically known as the nation’s distribution center, Memphis promises accessible connectivity to every market. Is it any wonder FedEx sponsored a $1 billion expansion in the city? Household manufacturing names have only served to strengthen Memphis as a supply chain hub.
Memphis is also a hotbed for young professionals, providing a creative and dynamic climate. Yet, it remains one of the most cost-effective cities in the country. The living cost in Memphis is consistently under the national average. Its affordability significantly reduces the cost of resources and sustaining business operations.
By the same reasoning, your business has the potential to reduce its payroll costs. When payroll is typically an organization’s highest cost, reductions to this metric can go a long way. Not only this, but you can slash your corporate real estate budget with affordable office rents. (And real estate is typically the second most significant cost.)
By relocating to Memphis, corporations can save dramatically by cutting their two most significant budgetary responsibilities.
Let’s take a closer look why Memphis is such an attractive location for businesses:
- City Sales Tax – 0%
- Estate Tax – 0%
- Personal Income Tax – 0%
- Class A Office Rent per square foot – $24
- Cost of Living – 85
Knoxville
The city of Knoxville is driven to ensure its economic prosperity. The Knoxville Chamber recently announced a 2022 initiative to strengthen its business climate through investing in:
- Health care
- Public education
- Workforce development
- Environmental policies
- Entrepreneurship
- Infrastructure
- Talent
Knoxville also provides access to top talent for reasonable prices. Like the other Tennessee cities, Knoxville also boasts an overall low living cost. As such, highly educated talent can go hand in hand with corporate profits. The Knoxville area is bolstered by the presence of the University of Tennessee.
It also provides a diverse industrial support system, with the main areas of focus including trade, transportation, utilities, and financial activities. Its transportation presence is so strong due to its convenient location. Knoxville is within one day's drive of three-fourths of the U.S. population. This premier geography is also responsible for its booming tourism industry.
Knoxville also promises lifestyle upgrades for individuals. The city is safe, affordable, and offers many attractions that contribute to its overall high quality of life.
To get a better idea of Knoxville’s business climate, let’s look at its numbers:
- City Sales Tax – 0%
- Estate Tax – 0%
- Personal Income Tax – 0%
- Class A Office Rent per square foot – $20
- Cost of Living – 82
Chattanooga
Located along the Tennessee River, Chattanooga is an axis for transportation and the natural world. It provides stunning sceneries and a rich business-friendly environment.
Chattanooga’s economy is supported primarily by its strong logistics presence. The city is centrally located and can be reached by highway, air, rail, and barge travel. As a result, its manufacturing and shipping capabilities are highly efficient. It is also home to a developed technology hub with the world’s fastest broadband connection and internet speeds.
Like other Tennessee cities, the primary allure of Chattanooga is its low costs. With wages and living costs below the national average, the price of doing business is highly affordable. Tax regulations also remain favorable for corporations with no state income tax, property tax, or inventory tax.
Chattanooga also provides abundant opportunities for economic support. There are numerous local and state grants and incentives to encourage business growth.
While holding such a strong business presence, Chattanooga also promises a rich culture. Near the Appalachian Mountains, the city maintains a small-town feel with art, entertainment, and rich outdoor beauty.
Let’s look at Chattanooga’s statistics to further understand why it is such a premier location:
- City Sales Tax – 0%
- Estate Tax – 0%
- Personal Income Tax – 0%
- Class A Office Rent per square foot – $22
- Cost of Living – 92
How a Tenant Rep can Assist Your Corporate Relocation to Tennessee
If you are looking to relocate one or more of your corporate properties, you may not know where to begin. The process can feel incredibly overwhelming. Luckily, you don’t have to do it alone.
As tenant reps, we have helped our corporate clients launch successful relocations. We provide dedicated services from scouting potential properties to negotiating with your new landlord.
We can help you weigh the benefits of moving to Tennessee and point out the city that would best fit your company’s culture and demands.
Even if Tennessee is not suitable for you, we are there to help. We can identify what location would allow your organization to reach optimal productivity.
Check out this article to learn more about the benefits of being located in a business-friendly area!
Wondering where to begin?
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