Nashville’s exponential industrial rent growth forcing tenants to weigh options

Bar chart of Nashville, TN commercial real estate Q1 2023 industrial rent per sf across submarkets and percent growth over 5 years.
  • Much of this market-wide rent growth can be attributed to healthy tenant demand and new construction commanding significantly higher price points, with prominent growth submarkets witnessing the most staggering rent growth.
  • Aggressive rent growth is forcing tenants to get creative in subsidizing costs, with more tenants beginning to put portions of their space up for sublease.  
  • While industrial rents are elevated, they normally account for a minimal amount of overall supply chain costs. Location can be the most critical cost-cutting measure as it can directly affect labor pool and drive time.

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US-TN-NSH Nashville