Starbucks Signs 250,000 SF Office Lease at Peabody Union, Anchoring Nashville's South Bank Real Estate District

Starbucks Coffee Company has signed a lease for all 250,000 square feet of Class A office space at Peabody Union, a mixed-use real estate development situated along the Cumberland River in Nashville's South Bank neighborhood, according to an announcement from Stiles.

The lease, announced April 22, 2026, represents a full-building commitment by Starbucks, establishing it as the corporate anchor of the five-acre development. Peabody Union was developed through a partnership among Stiles Corporation, Hensler Development, and PGIM, the real estate investment management business of Prudential.

Office Real Estate Deal Details: A Full-Building Commitment in South Bank Nashville

The 250,000-square-foot office building at Peabody Union is connected to Olive at Peabody Union, a 27-story residential tower, and is part of a broader mixed-use campus that includes two acres of public commons and 50,000 square feet of interconnected retail, dining, and entertainment space. The development also features green spaces, walkways, and access to the riverfront and greenways.

The South Bank district, a 125-acre area, has been branded by developers, landowners, and community stakeholders in recent years as a distinct neighborhood separate from neighboring downtown districts. Starbucks' corporate presence is expected to further catalyze activity across the broader district, according to the announcement.

Financial terms of the lease, including rent, lease duration, and tenant improvement allowances, were not disclosed.

Developer Perspectives: Stiles, Hensler, and PGIM on the Peabody Union Vision

Ray Hensler of Hensler Development described the lease as a validation of the development's community-centered approach. "Starbucks is an outstanding brand with a long history of positively impacting the communities where they do business," Hensler said. "They are the ideal partner and corporate anchor of Peabody Union to further energize our blossoming South Bank downtown neighborhood. We're immensely proud to welcome them and are eager to see them inspire and nurture our community in the years to come."

Soultana Reigle, Managing Director and Head of U.S. Equity for PGIM's real estate business, said the lease elevates the development's original vision. "Peabody Union was envisioned as a transformative mixed-use development that benefits from its excellent location within an emerging neighborhood and offers unimpeded permanent views of the Cumberland River," Reigle said. "With Starbucks as a partner, everything we have sought to do within this development is now elevated."

Jeff McDonough, Chief Development Officer of Stiles, emphasized the significance of Starbucks selecting South Bank. "To see a company of Starbucks' caliber — one that could land anywhere in the country — gravitate to the neighborhood vision of South Bank and Peabody Union, and want to become an active, central part of it, validates the vision so many stakeholders have had for the area for years," McDonough said. "We're proud to have seen the vision early and invested in Peabody Union to position Nashville to land such a transformational new corporate steward."

Development Context: Peabody Union and the South Bank Vision

Hensler Development, Stiles Corporation, and PGIM developed Peabody Union to deliver on a vision for downtown Nashville that centers on connectivity and livability, according to the announcement. The project is described as a five-acre curated collection of residential, retail, and dining uses where residents, workers, and visitors can gather along the Cumberland River.

The Peabody Union office building's connection to the Olive at Peabody Union residential tower and its proximity to riverfront greenways positions the development as an integrated mixed-use environment.

South Bank Nashville: An Emerging Real Estate District

The South Bank designation reflects a deliberate effort by developers, landowners, and community stakeholders to establish a distinct identity for the 125-acre district. The area has been positioned as a walkable extension of downtown Nashville, with Peabody Union serving as one of its anchor developments.

Starbucks' decision to locate its Nashville corporate presence in South Bank — rather than in an established downtown submarket — is described in the announcement as a validation of the vision stakeholders have held for the area.

No additional leasing activity, development timelines, or financial metrics for Peabody Union were disclosed in connection with the announcement.

About the Development Partners

Stiles Corporation is a real estate developer and owner-operator that served as a key development partner on Peabody Union alongside Hensler Development and PGIM, the real estate investment management arm of Prudential Financial. PGIM's U.S. equity real estate business is led by Soultana Reigle, who serves as Managing Director and Head of U.S. Equity.

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Sources: Stiles Corporation – Starbucks Signs 250,000 SF Lease at Peabody Union in South Bank Nashville