TVA Plans to Renovate, Consolidate Knoxville Properties
KNOXVILLE, Tenn. – The Tennessee Valley Authority announced today it will keep its headquarters in the current Knoxville Office Complex and not pursue other options, as previously announced. TVA also plans to consolidate functions from various other Knoxville-area locations into the West Tower of the complex. These moves are being made to increase efficiencies and reduce operating and maintenance expenses.
In spring 2016, TVA announced it would consider several options for consolidating its business locations in the Knoxville area, including selling both towers at the KOC and the nearby Summer Place Complex and then leasing a build-to-suit building on the Summer Place location, or another site in downtown Knoxville.
After review, TVA has determined the option for a new building is not in the company’s best interest. Instead, TVA will remain in the current downtown location and consolidate employees from the Knoxville region into one location at the West Tower.
TVA currently has more than 50 structures in the Knoxville area, many of which are under-used and in poor condition. TVA is also occupying only about 40 percent of the KOC, with a majority of the East Tower vacant.
TVA is preparing an updated real estate strategic plan that is looking at the best way to vacate, sell or demolish the properties within a 50-mile radius of Knoxville. Subject to TVA Board approval, TVA would also look for opportunities to dispose of the East Tower and Summer Place Complex. These actions are expected to be less expensive than a new building, with substantially less risk than demolition of existing downtown buildings.
Improvements at the KOC could begin as early as this summer.
These decisions are subject to completion of appropriate environmental reviews. TVA previously published a draft Environmental Assessment of the build-to-suit option and will now revise that assessment to reflect this new direction as the preferred alternative.
TVA has engaged CBRE, Inc., a commercial real estate advisor and broker, to market TVA properties including the East Tower and Summer Place Complex, subject to TVA Board approval. CBRE is also marketing recently-vacated buildings at Singleton and Greenway, which will be sold at auction, subject to CEO approval.
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