How Chattanooga’s $239M Federal Courthouse Boosts Downtown Market

The U.S. General Services Administration has earmarked $239.3 million for a new federal courthouse in Chattanooga. Funded through FY 2021 appropriations and subsequent Congressional allocations, the project covers acquisition, design, and construction of a ~190,700.GSF facility featuring 7 courtrooms, 9 judge chambers, and 40 secure parking spaces (U.S. General Services Administration, Chattamatters, WTVCFOX, U.S. General Services Administration).

Why a New Courthouse Was Needed

Chattanooga’s current federal courthouse, the historic Joel W. Solomon courthouse (built in 1932), has grown functionally obsolete. Issues include outdated systems, lack of capacity, and accessibility problems. The GSA cited urgent need for modern facilities to accommodate district, bankruptcy, and probation functions, and to improve security and public service (Chattamatters).

Site Selection & Project Status

The site proposed for the courthouse centers around Vine Street, Lindsay Street, and Georgia Avenue in downtown Chattanooga. While Unum Group has declined to sell its property on Vine Street, GSA has identified alternate sites in the downtown area. The project received a Finding of No Significant Impact (FONSI) in March 2024, and is currently in site acquisition and design phase (U.S. General Services Administration).

Real Estate Implications

• Legal services demand: Growth in attorneys, paralegals, and professional offices.

• Downtown foot traffic: More jurors, employees, and visitors mean hospitality and retail demand.

• Residential lift: Multifamily sites within walkable radius gain appeal for employees.

• Redevelopment momentum: Landowners may consider densification or mixed-use repositioning.

This federal investment signals confidence in Chattanooga’s long-term downtown potential and offers target opportunities for broker outreach and listing preparedness.