Nashville office market report
The Nashville office market showed positive signs of improvement as the market rebounds from uncertainties surrounding the future of office space during the height of the pandemic. The outlook for 2022 is positive as tenant demand and market activity continue to pick up.
At the end of the first quarter, Nashville’s office market had 2.77 msf under construction. First quarter deliveries added only 112k sf to inventory, with an additional 640k sf expected to complete by year-end.
Nashville’s office market had a strong start to the year with over 270,000 sf of positive net absorption recorded at the end of the first quarter, due mostly in part to Genesco moving into their 200k sf headquarter space in the Airport North submarket
Direct asking rent
Rising vacancies and increased sublease offerings have attributed to rent softening across the Nashville market. Average rents decreased 0.6% year-over-year, ending the quarter at $30.33 psf. Class A rents continue to see upward movement, led by new construction asking rents.
Nashville continues to see record volumes of sublease space on the market, surpassing 2.0 msf of sublet office space available at end of the first quarter.
Direct and sublease vacancy both rose in the first quarter coming in at 17.9% overall vacancy. The market wide rise in vacancy is not only attributable to tenant retractions, but also a steady stream of speculative construction deliveries that have hit the market with significant vacancies.
Due to low interest rates and pent-up demand among investors, pricing has seen exponential growth in recent years. Nashville’s office investment sales totaled over $250 million year-to-date, with numerous urban office properties trading during the first three months of 2022.
Your source for the latest Nashville office market reports
Get in-depth office market reports and insights from commercial real estate experts in the Greater Nashville area. Avison Young advisors look at Nashville commercial real estate activities and the latest Nashville statistics to provide you expert market research on Nashville's office properties.
Explore different topics like the latest office market pricing trends and analysis of Nashville's current office real estate market conditions. Gain a better understanding of Nashville’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Nashville's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Nashville.
The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.