Highwoods Properties has announced another massive office building, adding to the Class A office space in Cool Springs. Here is the story reported by Jim Stinson with the Nashville Business Journal:
” Booming Cool Springs sparks $27M office building twin
Another Cool Springs office developer, responding to demand in the expanding submarket, is building a mirror opposite of an existing building,
Highwoods Properties Inc. is building Cool Springs IV – a replica of Cool Springs III – in its 926,000-square-foot, five-building Cool Springs Office Park.
Cool Springs IV, which has no tenants yet, will be 153,000 square feet, and will cost about $27 million, up a bit from Cool Springs III, which was finished 18 months ago. But Highwoods officials aren’t sweating speculation.
Cool Springs office-space demand isn’t slowing, according to Grubb & Ellis|Centennial research. Its research shows that vacancy in the Franklin submarket was 7.3 percent at the end of June – the fourth lowest in Middle Tennessee.
The office park along Carothers Parkway attracted Healthways Inc. in 2006. The Green Hills-based disease-management company will move into its 255,000-square-foot building in 2008.
The move by Highwoods follows Boyle Investment Co.‘s decision to build a twin tower in its Meridian Cool Springs development. Earlier this month, Boyle officials said they would add 2550 Meridian Blvd. to their office park, adding the 67,710-square-foot building to complement 2555 Meridian.
Highwood’s Cool Springs III is 95-percent leased, and has drawn tenants from other parts of Franklin and from Dallas, company officials say.
“The demand in Cool Springs is coming from everywhere,” says Jimmy Miller, Highwoods leasing director. “It’s the most active (office) submarket.”
The three-story Cool Springs III is nearing full occupancy. Its largest tenants are Dallas-based HQ Global Workplaces and Eco-Energy of Franklin, Miller says.
Journal Communications Inc. also moved into Cool Springs III. The media company, co-founded in 1988 by Alex Haley, the author of “Roots,” moved from Mallory Station Road in Franklin.
With the fifth building finished sometime in 2008, Highwoods will be finished with the Cool Springs Office Park.
Like many Cool Springs office parks that are nearing completion, space is running out and developers are eyeing what is left in the Franklin business district. “We’re completely built out,” says Reames.
But there’s plenty of space elsewhere in Cool Springs near the new McEwen Road interchange and more deals could be coming, Reames says.
“We’re actively reviewing everything that is available,” he says.
Miller says Cool Springs as a submarket has grown 40 percent since the start of 2006. Yet the market has consistently absorbed new and vacant space, and maintained an occupancy rate of about 95 percent, he says.”