COVER STORY, SEPTEMBER 2012

Clarksville, Tennessee Retail Market

Clarksville is enjoying dynamic retail growth as it continues to remain somewhat insulated from the economic volatility seen around the country. Tennessee’s fifth largest city was the ninth fastest growing city in the nation in July 2008 and the 10th fastest growing metropolitan statistical area in March 2008, according to the U.S. Census Bureau. Since that time, growth has continued, with projected population growth rates of 10.06 percent in Clarksville and 9.92 percent in Montgomery County between 2009 and 2014. This is a continuation of the trend seen between 2000 and 2010 when growth was 28.5 percent in Clarksville and 27.9 percent for Montgomery County. The Census Bureau’s 2011 population estimate for the MSA was 277,701.

Serviced by Interstate 24, multiple U.S. and state highways, rail service, navigable waterway and air service, the Clarksville area recently experienced diversified growth in the industrial base with a $1.2 billion capital investment made by Hemlock Semiconductor, representing the largest capital investment in Tennessee history. Clarksville’s Outlaw Field airport, which caters to private and corporate air traffic, opened a new terminal in June 2012 featuring technology-rich, state-of-the-art meeting facilities.

Retail growth is currently robust with historic high sales tax receipts reported for the fiscal year ending June 30, 2012, showing an increase of 18 percent compared to the previous year. Clarksville’s growth is solidifying the market as a dynamic regional shopping area.

Recent additions to the market include Dick’s Sporting Goods, Bed Bath & Beyond, and Publix, which opened one location in early in 2012 with another is scheduled to open by year’s end. Best Buy moved from a 20,000-square-foot inline space to a 34,000-square-foot free-standing building. Several restaurants have also announced plans to open Clarksville locations: Panera Bread, Five Guys Burgers and Fries, and Tilted Kilt are under construction while Cheddar’s Fast Casual should begin construction soon.

Major drivers in the Clarksville economy include Fort Campbell Army Post, which injects approximately $3.7 billion annually into the local economy and has approximately 30,000 active duty troops stationed at the post and another 8,000 civilian employees. Nearly 70 percent of the soldiers retiring from Fort Campbell remain in the Clarksville-Montgomery County area. Austin Peay State University continues to grow, with enrollment approaching 11,000 students. Both of these major market players contribute to this vibrant community’s median age of 32.

Multifamily and single-family housing growth continues along the Interstate 24 corridor near Clarksville’s primary shopping district, which is also experiencing a boom in medical-related building due to the proximity to Gateway Regional Hospital. New privately developed apartment complexes geared to college students opened in recent years, just minutes away from the shopping district and downtown campus.

The Forbes magazine list of the “200 Best Places to do Business in the U.S.” was released in June 2012 and ranked Clarksville at 96th. Factors included population, major industries, median household income, low unemployment levels and job growth. The unique combination of favorable factors in Clarksville — including the young, vibrant population, increasing home prices and growing retail market — provides prospective developers with interesting opportunities to provide creative solutions within a thriving area.

— Wayne Wilkinson, CCIM, is president of NAI Clarksville.


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