Weekly Market Updates - 12/15/2025

• Mom-and-Pop Bankruptcies Surge: What Appraisers Should Watch

Small business bankruptcies have reached record levels, with more than 2,200 filings under Subchapter V this year, according to Epiq Bankruptcy Analytics. These cases often hinge on real estate valuations, creating increased demand for appraisers and heightened scrutiny of their work. Assignments typically involve as-is and as-stabilized valuations, secured-claim analyses, and readiness for cross-examination. Experts note that appraisers must deliver credible, defensible results as bankruptcy proceedings become more specialized and time-sensitive. (Source: CoStar Economy, November 2025)

• When it comes to leasing, retailers still favor smaller spaces

Retailers continue to prefer smaller store footprints, even as leasing activity rebounds. Industry analysts note that brands are prioritizing efficiency and flexibility, opting for compact spaces in high-traffic locations rather than large-format stores. This trend reflects evolving consumer behavior and the push for omnichannel strategies that reduce reliance on expansive physical retail. (Source: CoStar, November 2025)

• Whataburger to close four Middle Tennessee locations

Whataburger, which re-entered the Nashville market in January 2022, will permanently close four of its 24 Middle Tennessee restaurants on December 15 at 11:59 p.m.—choices part of its regular business review to “maximize opportunities for growth” and “focus efforts where we can make the biggest impact”. The affected locations are:

o Mt. Juliet: 11190 Lebanon Road

o Murfreesboro: 1924 Memorial Boulevard

o Clarksville: 791 North 2nd Street

o Clarksville: 1602 Haynes Street

The Mt. Juliet site opened on July 9, 2024, and operates on a 15-year lease with Lineberry Properties; the landlord expects it will be subleased. Despite the closures, Whataburger remains committed to expanding in the region—with plans underway for a new Nashville-area location off Gallatin Avenue. (Source: The Tennessean, December 8, 2025)

• Nashville-area residential sales slump

In November, the Nashville area recorded 2,412 home closings—a 6% drop compared to 2,567 closings in November 2024.

(Source: Nashville Post, December 2025)

• Developer takes major loss in Pie Town deal

A local developer sold a Pie Town property for $6.5 million—less than half of the $14 million it paid for the site in 2022. The 1.3-acre parcel, located at 719 8th Avenue South, was purchased by an affiliate of Atlanta-based developer Portman Holdings. The sale underscores shifting market conditions and declining land values in Nashville’s urban core, as developers recalibrate plans amid higher interest rates and slower demand for large-scale projects. (Source: Nashville Post, December 9, 2025)

• Oracle Nashville campus cost jumps to $4.5 billion

Oracle’s planned 80-acre global headquarters complex on the Nashville Riverfront now carries an all-in investment of $4.5 billion, up significantly from earlier estimates in the $1.2–$2 billion range. The sprawling development will include 2.7 million square feet of office space, a luxury Nobu hotel, 34,000 square feet of retail, a 700-seat auditorium, a pedestrian bridge over the Cumberland River, extensive infrastructure upgrades (including a sewer pump station handling 32 million gallons per day), and environmental remediation.

(Source: NBJ, December 10, 2025)

• T.RAD North America to bring 928 jobs, $90.2 million investment to Clarksville

T.RAD North America, a subsidiary of Japan-based heat-exchanger specialist T.RAD, announced plans to build its first Tennessee facility in Clarksville’s Montgomery County Corporate Business Park South. The project represents a $90.2 million investment and will create 928 jobs over the next five years, focusing hiring on transitioning military personnel and local residents. Key officials—including Governor Bill Lee and TNECD Commissioner Stuart McWhorter—highlighted the move as a win for Tennessee’s advanced manufacturing sector and a boost to the region’s economy.

(Source: NBJ, December 10, 2025)

• Fed cuts key interest rate but signals fewer reductions ahead

The Federal Reserve lowered its benchmark interest rate by 0.25 percentage points, bringing the federal funds rate to a range of 4.75%–5%. This marks the first rate cut since 2020, aimed at supporting economic growth amid cooling inflation. However, policymakers signaled a more cautious approach for 2026, projecting only two additional cuts next year—fewer than markets anticipated. Fed Chair Jerome Powell emphasized that future moves will depend on incoming data, balancing inflation risks with economic stability. (Source: CoStar, December 11, 2025)

• Report: Tennessee’s economy grew at a slower pace in 2025

The University of Tennessee’s Boyd Center released the 2026 Economic Report to the Governor, finding Tennessee’s economy expanded in 2025, but more slowly due to subdued job growth and federal policy shifts. The state added about 24,000 new jobs in 2025—down from a pre-pandemic average of ~60,000 annually—and projects an additional 31,000 jobs in 2026. Consumer spending remained strong, driven mainly by higher-income households, while nominal personal income is expected to increase by 4.8% in 2025 and 4.5% in 2026. Tennessee also saw continued population growth, with approximately a third of the 80,000 newcomers from 2023–2024 being prime working-age adults. The report highlighted political and economic uncertainties, including inflation, tariffs, and housing affordability, and also noted both the promise and challenges of planned nuclear initiatives in East Tennessee. (Source: Nashville Post December 15, 2025)

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