Downtown Chattanooga is experiencing strong investment across residential, office, hospitality, and retail spaces, according to the semi-annual Downtown Chattanooga Economic Conditions report published by River City Company.
The report provides point-in-time data on the entire River City Company footprint, including 16 projects totaling over $523 million under construction.
Since the last report, downtown continues to welcome more employees back to work at locations like TVA and Unum, along with new company announcements, including Valerie Health and Total Quality Logistics. Over 94.4% of office space is leased, up from 93.6% in the July report and substantially higher than the national average of around 80%.
“These are more than just numbers – when you have more people working downtown and companies expanding with new locations, we’re seeing more people getting coffee from local businesses and enjoying lunch and dinner downtown. Having a strong workforce in our downtown supports our small and local businesses,” said Emily Mack, President and CEO of River City Company.
Downtown also welcomed a significant number of new businesses in every downtown district in River City Company’s footprint, including Orange You Glad in the Southside, Hungry Mother in the MLK District, and Kendra Scott in City Center.
“Last year, 24 unique businesses opened within the River City Company downtown footprint, resulting in a net gain of 10 businesses. Already in 2026, we have seen Torikaya, Bona Fide, and Pedal and Pour announce openings soon,” said Mack. “All downtowns experience business openings and closings. The increase in available commercial square footage is due to a few large spaces – Sticky Fingers, Taco Mac, and Naked River Brewing – becoming available around the same time. In a mid-sized market like ours, those three properties can have an outsized effect on the data. These properties are prime locations that we are actively pursuing businesses to fill.”
Filling every single vacant space is a priority for River City Company, which is why the organization launched the Scenic Storefronts program in November 2025 to support local businesses and property owners in filling space. Projects include historic restoration, structural improvements, signage, awnings, outdoor patios, and grease traps. Since launching in November, five businesses are already in the process of securing funding to improve their storefronts.
River City Company also announced a new partnership with Retail Strategies to provide comprehensive services, including in-depth market research and retail gap analysis, real estate evaluation of priority commercial properties, and proactive outreach to a targeted list of retail and restaurant prospects. The organization also recently celebrated another grand opening of the Waymark Tapestry by Hilton, a $59 million investment in a long-time vacant historic building in the downtown core.
“The impact of this transformative development will extend far beyond the walls of the hotel. Cities thrive when people wake up downtown, work downtown, and enjoy themselves downtown. The Waymark Hotel, the Vault, and the Iris rooftop will add more energy to Market and Broad streets. These unique and fun spaces will offer our residents another great place to enjoy and work, and our visitors a comfortable place to experience,” said Mack.
With a strong emphasis on providing more student housing to accommodate the growing enrollment at the University of Tennessee at Chattanooga, the multifamily housing pipeline remains adequate to meet local demand. A 794-bed development is anticipated to be completed in 2027 and will further connect UTC to downtown.
“We see the economic conditions report as a valuable tool to those who are seeking to grow their business or invest in downtown. We will also be able to track how we measure compared to others in the region and to be able to focus on areas we would like to improve,” said Mack.
The full report can be found here.