Nashville’s tech scene is hot, with an innovative culture that is drawing tech firms and entrepreneurs from across the nation. Large technology companies like Asurion and ServiceSource, which are expanding its downtown sales center, have a strong presence. There’s also a flow of new software and digital firms moving into and expanding in the region, such as, Drake Software and TechnologyAdvice. Video Gaming Technologies have recruited more than 100 technology professionals in the past 24 months after relocating to the Nashville area from Virginia in 2007.
Nashville’s tech hub scene has increased opportunities for many investors, especially real estate investors. Investing in Nashville real estate has become easier due to the many advantages that Nashville’s tech scene brings. Such as the increase in job opportunities as well as educational systems and much more make it perfect for real estate. As Doug Edwards, chief administrative officer for VGT, said :
The core advantages for selecting Nashville as our technology hub were the immediate access to a broader labor force, the cost of living, the local education system, no state income tax, the ease of selling the Nashville area and the support received from the state of Tennessee to assist us in growing our operations.
Nashville as a tech hub city
I’m sure most of you heard when Google picked Nashville in 2013 as one of seven inaugural cities to participate in its Google for Entrepreneurs Tech Hub Network, which is a new venture the tech giant launched to better connect emerging local tech scenes across the country with each other and with resources at Google. The local hub was hosted through the Nashville Entrepreneur Center, which has been courting Google for the past two years, which also hosted a Google for Entrepreneurs event.
The Nashville Entrepreneur Center is one of only 10 locations in North America that makes up the Google’s Tech Hub Network. Each of these venues is outfitted by Google with business tools and a constantly updated infrastructure that allows them to be competitive with other innovation incubators, and many Google Fiber announcements, including the initial unveiling, go through the Center first. The program is directed towards locations that reflect Google’s enthusiasm for technology and small business, which makes Nashville’s Entrepreneur Center a perfect fit.
Nashville’s Entrepreneur Center
Nashville EC is located in Nashville, Tennessee, and is a thriving community space with co-working, events, training, and accelerator classes for rising startups. Google for Entrepreneurs allows tech hubs like the Nashville EC by providing them with technical content, business tools, and infrastructure upgrades so that they can support increasing demand from developers and startups and help grow their local economies. This helps Nashville real estate investing since so many people are attracted to Nashville for its tech hub. When there is an increase in residents in a certain area there is an increase demand on housing and rental properties.
Why did Google choose Nashville?
The Google Company has a passion for entrepreneurs and small business, which attracted it to Nashville. Two years ago, the company created Google for Entrepreneurs, a global program that spans 110 countries, and has now landed a permanent location in Nashville as part of the company’s new Entrepreneurs Tech Hub Network. But from the program’s start, Nashville has been involved and at the forefront. In the past two years, Google has come to see tremendous value in the actual physical spaces that support entrepreneurs, leading to the new tech hub network.
When it comes to having a successful tech hub in any city, there four key requirements. This criteria is also important for investors interest in Nashville real estate investing, as it represent market growth, one of the key features of a market suitable for real estate investing.
- Inspirational Education: Being in close proximity to universities that advocate free-thinking while providing the necessary resources for a tech-based education is fundamental to the process—young minds need to be nurtured in a space that promotes creativity, collaboration, and vision.
- Willing Participants: Commonly known as the Millennials, people born between 1980-2000 are flocking to cities, looking for intellectually fluid work environments which foster innovative thinking. In time to come, the number and spending power of millennials will only grow and they will become the most mobile group seeking job opportunities across the world. In any area where there is a growth in millennials there is a growth in demand on rental properties, making this an excellent opportunity for investors interested in Nashville real estate investing.
- Stimulating Job Market: Millennials are eager to join a vibrant community of pioneers and innovators and the tech labor demand in the different cities present an exciting opportunity for them, whether it be overseas or locally.
- Visionary Investors: The importance of venture capitalists to the development of tech hubs cannot be overlooked. In 2015 alone, investment by venture capitals for start-up companies throughout the US was reported to $58.8 billion. In order for the innovations and new ground-breaking technologies to realize, it has to be backed by a multitude of knowledgeable investors whose vision lines up with the direction of technological development and progressive thinking.
How is Nashville’s tech hub scene is benefiting real estate?
Nashville is considered one of the top cities great for real estate investing. Many real estate investors, fund managers, property companies, lenders, brokers, advisers and consultants prefer to allocate capital in Nashville due to its variety of opportunities. Nashville’s tech hub scene opened the doors to an increase amount of job opportunities for so many. This city generally has a lower cost of doing business than “gateway” cities like New York or San Francisco. Smaller businesses are generating jobs at a faster clip than large ones. This is the key factor why Nashville is attracting so many people from all over the country. As a result of Nashville’s population growth, the demand for rental property is increasing greatly. For every real estate investor, this is a dream come true.
The bottom line
Nashville’s tech hub scene is gradually increasing and becoming the nation’s strongest city for entrepreneurs. This opens a wide variety of opportunities for real estate investors. Nashville’s emerging tech hub carries with it characteristics such as, relatively low housing cost, low unemployment rates, median tech salaries higher than the median salary for the city’s total workforce, and venture capital funding to spawn new businesses, making this city a prime environment for real estate investing.