BCG Triples Space in New City Property’s Neuhoff District

One of the world’s top management consulting firms is expanding its footprint in Nashville with a lease in Germantown.

Boston Consulting Group signed for 23,000 square feet of office space at Neuhoff District, at 1320 Adams Street, the Nashville Business Journal reported. The lease more than triples its local office space just two years after establishing a presence in the city.

Atlanta-based developer New City Property bought the 14-acre site of a former meatpacking plant in 2019 and delivered the 448,000-square-foot office building, which also includes retail, last year. The firm paid $32 million for the site and is spending $550 million on the first phase of development, which will include another 500,000 square feet of office space and hundreds of apartments, the outlet reported.

Cushman & Wakefield’s Jenna Muller, alongside Rob Lowe and Robby Davis of Stream Realty, are spearheading office leasing for Neuhoff. JLL represented BCG in the transaction.

BCG plans to move in next year. It previously leased 6,550 square feet from WeWork in One Nashville Place, at 150 4th Avenue North. When WeWork closed its downtown operations in May, BCG continued its lease directly with that building’s landlord, Unico Properties.

The firm has doubled its Nashville headcount, from 40 to 80 employees, and it has been the fastest-growing BCG office, the outlet reported.

The Neuhoff office building has also drawn top-50 accounting firm Frazier & Deeter and law firm Butler Snow, which are relocating from downtown Nashville.

Landlords are struggling to fill office space across the country, but newer, amenity-filled office spaces typically perform better as companies attempt to combat remote-work trends and draw employees back to in-person work.

The office scene in Nashville has shown several positive signs.

The city notched 1.4 million square feet of office leases in the second quarter, and 87 percent of that was for Class A and trophy buildings, according to Avison Young. The market saw 186,000 square feet of positive absorption from April through June, and the trend is expected to continue upward.

Prospective tenants are shopping for 800,000 square feet of office space, including a mystery tenant seeking 500,000 square feet.

—Rachel Stone