Tenant demand for office space remains active amidst shifting space needs in Nashville - United States
Tenant demand for office space remains active amidst shifting space needs in Nashville
Tenants’ shifting space needs amidst a large concentration of newly delivered speculative office space has caused vacancy to increase significantly in recent years, with Nashville’s office vacancy now standing at 21.1%, above the 10-year average of 12.8%.
While rise in vacancy may give an impression of the market “softening”, tenant demand remains active in both urban and suburban submarkets throughout Nashville. Months on the market- the time space remains on the market before it is leased- is currently sitting below the averages recorded prior to the current construction boom.
More active development submarkets in the urban core have seen a slight rise in months on the market due to the rapid increase in supply.