Nashville office market report

Q3 2022

Uncertain economic conditions and rising interest rates are beginning to shake up market values, with investors and tenants taking more conservative approaches in their real estate decisions. Sublease space continues to sit at record levels, inevitably causing rent growth softening across the market. Activity remains focused in the small to mid-sized space range, with tenants continuing to place importance on building amenities.
2.4 msf

Construction

At the end of the quarter, Nashville’s office market had 2.4 msf under construction, of which 44% is preleased. 
-140k sf

Net Absorption

Significant negative absorption has occurred in Nashville’s CBD submarket, where Bridgestone (162,000 sf) and Asurion (90,000 sf) have both announced sublease availability in their recently delivered HQ locations.  
$30.64 psf

Average Asking Rent

Rising vacancies and increased sublease offerings have attributed to rent softening across the Nashville market. Average rents remained relatively flat at the end of the third quarter, increasing 0.4% year-over-year, reaching $30.64 psf. 
2.3 msf

Sublease Availabilities

Nashville continues to see record volumes of sublease space on the market, surpassing 2.3 msf of sublet office space available. 
18.9%

Vacancy

Holding steady at near-record levels, vacancy ended the quarter at 18.9%. Vacancy has risen dramatically since the end of 2019. 
$739M

Investment Sales

Nashville’s office investment sales totaled approximately $739 million year-to-date. Pricing averaged $261 psf during the quarter, down from $342 psf year-over-year.
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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.

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