Last year, tech giant Oracle (NYSE: ORCL) announced plans to move its company headquarters from Redwood City, California, to Austin, Texas. But that's not the only metro area the company is interested in. In April, it submitted plans to develop a $1.2 billion campus in Nashville, Tennessee. And in early May, that proposal was approved, paving the way for Oracle to break ground on its latest initiative.
A major investment
Oracle is planning to develop a 65-acre campus in Nashville, with construction to possibly begin as early as June. But it's not just investing in its own office space -- Oracle is also investing in Nashville itself. Specifically, its plan includes $175 million to go toward public infrastructure, including a pedestrian bridge over the Cumberland River, a sewer pump station, and a new riverfront park. Oracle will absorb all of these costs itself, without burdening Nashville taxpayers.
Oracle was drawn to Nashville because it's home to a robust workforce and a number of world-class education institutions. It's also a relatively affordable city and has, in recent years, become a top destination for new members of the workforce.
Oracle's new campus will result in about 8,500 jobs in Nashville, 2,500 of which are expected to be available by the end of 2027. But the project will create ancillary jobs, too. After all, it'll take a lot of effort to bring its mega-campus to life, and so opportunities in the construction space are apt to open up as the project gets underway.
A huge win for Nashville real estate investors
The fact that Oracle is coming to Nashville could work wonders for the city, as well as those who invest in it. First of all, local businesses could see a huge uptick in revenue once Oracle's new campus is complete and thousands of people begin occupying that space on a daily basis.
Furthermore, following the opening of that campus, more local businesses could emerge, which could spell opportunity for commercial landlords. Restaurants and cafes could start popping up. Stores might choose to open nearby. And they'll all need commercial space to rent.
Local property values could also start to climb once Oracle settles into Nashville. That would, in turn, be great for real estate investors with Nashville inventory in their portfolios.
Finally, the creation of new jobs could lead to more housing demand. That's a great opportunity for investors to buy up income properties in Nashville -- both single-family homes as well as multifamily units. And, an uptick in housing demand could also help existing landlords command higher prices for their properties.
All told, there are numerous ways real estate investors can benefit from Oracle's new initiative. Though the project could take years to complete, investors whose inventory is concentrated in other markets may want to carve out room to add Nashville properties into the mix. It seems like the city could be headed in a very positive direction, and those who get in sooner rather than later could capitalize in a very big way.