- Downtown Nashville’s top office towers lost nearly $400M in appraised value, with an average drop of 18.7% in Davidson County’s latest reappraisal.
- High-profile properties like Bridgestone Tower and Symphony Place saw value drops of 23–33%, as vacancy rates hit 24.4%, well above the national average.
- Commercial tax revenue is projected to fall by over $100M annually, prompting Mayor Freddie O’Connell to propose a 27% property tax rate hike to help offset the decline.
Office Boom Turns To Bust
The once-booming downtown Nashville office market is facing a sharp correction, reports The Real Deal. Fourteen of the city’s largest non-government towers, built before 2020, were reappraised at significantly lower values this year, slashing nearly $400M from the city’s commercial property tax base.
Bridgestone Tower, once valued at $213M, now appraises for just $142.7M — a 33% plunge. Symphony Place lost 23% of its value, or $43M. Other notable office towers, including Fifth Third Center and Amazon Tower I, also saw tens of millions in lost value.
Vacancies, Distress Sales And Value Reset
Downtown Nashville’s office vacancy rate rose to 24.4% in Q1 2025, well above the national average of 20.8%, per Cushman & Wakefield. The slump is fueling distress sales — most notably the $17M sale of Philips Plaza at an 85% discount.
With few deals closing and sales activity subdued, even a few distressed transactions are reshaping value expectations. Brokers say landlords are gearing up to challenge reassessments, while potential buyers are resetting their pricing models.
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Budget Consequences And Tax Response
The collapsing values are taking a toll on Metro Nashville’s budget outlook. A projected $100M drop in annual property tax revenue from just the 14 hardest-hit towers has spurred action.
Mayor O’Connell has proposed raising the tax rate to $2.22 per $100 of assessed value — a 27% hike over the current post-reappraisal rate. Even with the increase, revenue from these properties would still fall more than 36% compared to 2021 levels.
Residential Gains Offset Commercial Pain — For Now
While office valuations tumbled, Davidson County’s overall property values rose, thanks to surging residential demand. The median single-family home price jumped 43% from March 2020 to March 2025, helping lift the county’s median property assessment by 45%.
Still, with the downtown commercial core now dragging on tax revenue and public service budgets, local officials and developers will be watching closely to see if leasing demand returns — or if further corrections lie ahead.
