Nashville industrial real estate market reports

Q3 2022

Increased e-commerce needs and unquenched tenant demand have fueled leasing activity and served as buffers for the Nashville industrial market not only during the pandemic but also during one of the city’s largest construction cycles.

7.3 msf


At the end of third quarter, Nashville’s industrial market had 7.3 msf under construction. YTD deliveries have added 5.1 msf to inventory, with an additional 5.0 msf expected to complete by year-end.
5.5 msf

Net Absorption

With no slowdown in positive momentum, healthy demand brought approximately 5.5 msf of positive net absorption. 
$6.31 psf

Direct Asking Rent

Persistent tenant demand, as well as soaring land and construction costs continue to place upward pressure on industrial rents across the market. Warehouse & distribution rents increased 2.6% year-over-year, ending the quarter at $6.31 psf. 
11.8 msf


During the third quarter the amount of total industrial space available continued to decrease, falling to 11.8 msf on the market. 


Despite Nashville’s industrial construction boom, vacancy remains tight. Overall industrial vacancy ended the quarter at 3.9%, seeing no change year-over-year. 
$908 million

Investment Sales

The Nashville industrial market continues to witness substantial investor interest, with investment sales totals reaching a historic high of $907 million at the end of the third quarter. The strong performance year-to-date is due in large part to numerous industrial park portfolio purchases, as well as, newly delivered properties trading at a premium. 

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