10/01/2026
When companies evaluate where to invest and grow, they look at a wide range of factors, from site readiness and infrastructure to taxes, energy, and speed-to-market. In Area Development’s annual Top States, there were 20 site selection factors measured, Tennessee ranked #3 overall, earning top five rankings in 15 categories.
Among Tennessee’s strongest areas:
#1 — Site Readiness Programs
#2 — Property Tax Environment
#3 — Permitting & Development Predictability
#3 — Availability of Industrial Sites & Buildings
#3 — Energy Availability & Grid Capacity
#3 — Logistics & Transportation Infrastructure
#3 — Energy Costs
#3 — Overall Speed-to-Market
#3 — Cooperative/Responsive State & Local Government
Tennessee also ranked in the top five for corporate tax structure, regulatory environment, overall cost of doing business, labor cost competitiveness, business incentive programs, climate risk and resilience, and more.
For companies looking for a place to invest, Tennessee continues to , and East Tennessee stands ready to welcome new and expanding industries.