Nashville industrial real estate market reports
Q3 2021: Despite challenges posed by the Delta variant, the Nashville economy is continuing to see strong recovery dynamics market-wide.
Despite challenges posed by the Delta variant, the Nashville economy is continuing to see strong recovery dynamics market-wide. Nashville's industrial sector continues to fare better than other asset types in the wake of the COVID pandemic. Increased e-commerce needs and market demand have fueled leasing activity, buffering the sector against negative absorption and softening rental rates.
Nashville unemployment rate
Nashville's unemployment rate has dipped from 4.4% to January 2021 to 3.5% in August.
After reaching a historic low last year, Nashville's industrial vacancy rose 50 basis points year-over-year, ending the quarter at 3.8%, as a new wave of deliveries added much needed availabilities to the market.
YTD net absorption
Due to a steady stream of activity, YTD net absorption climbed to 5.8 msf.
Nashville continues to witness its largest construction cycle in recent history. At the end of the quarter the industrial market had over 7.0 msf under construction.
Industrial asking rent
Even as new deliveries hit the market vacant, increased construction costs have placed upward pressure on rental rates across the market. Nashville's industrial asking rent reached $5.80 psf at the end of the quarter, a 7.6% increase year-over-year.
YTD industrial investment sales
YTD investment activity is on pace with Q3 2020 totals, as YTD industrial sales reached $520 million at the end of the quarter.
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