Nashville Partner Tucker Herndon was featured in the Nashville Business Journal where he discussed the growing wave of office-to-hotel conversion projects reshaping downtown Nashville. The article examines how developers are navigating an unprecedented volume of large-scale conversions as millions of square feet of underused office space are repositioned amid shifting market conditions.

Tucker cautioned that while discounted acquisition prices make conversions attractive, the process is far from straightforward. “It’s Pandora’s box,” he said. “So when you open it up, you need to know exactly what you’re buying because a small mistake could turn into millions of dollars worth of additional expense.” At the same time, he noted the upside, explaining that “the idea of buying something that is 20, 30, 40% cheaper than building it, and you don’t have to start with ground-up construction — there’s significant benefits if the floorplates allow you to convert it.”

A key theme of the article is the importance of extensive due diligence before closing on a conversion project, particularly given the age of many Nashville office buildings. Tucker emphasized that developers must carefully evaluate what they are purchasing, noting that “the biggest thing you can do is do proper due diligence on a specific site because a lot of these buildings were built in the ’40s, ’50s, ’60s, maybe ’70s.” He added that developers often spend “six to 12 months, or even years” evaluating whether a building can be successfully converted.

Tucker also addressed the technical and financial complexities involved, including plumbing, ceiling heights, and core structural limitations, and observed that while financing was difficult to secure in recent years, lender sentiment has begun to shift. “I don’t think that there is as much hesitancy as there was 12 or 24 months ago,” he said, noting that lenders are increasingly willing to fund experienced developers who understand the risks. The article underscores how Nashville’s evolving office market has opened the door to conversion opportunities, while highlighting the careful planning and expertise required to make those projects viable.

To read the full article, click here.