Nashville retail market report
Q2 2026
The Nashville retail market has seen a balanced first half of 2026, as a limited construction pipeline and stable demand drivers sustain one of the nation’s more sought-after markets. While the metro has seen significant population growth in the wake of the pandemic, elevated construction costs have caused development to moderate. Creating a competitive and increasingly complex leasing market. While big-box space has become increasingly prevalent to turn over, this has allowed credit worthy tenants to rotate in and capitalized on existing conditions to bolster underperforming assets.
Retail product under construction
Nashville’s construction pipeline has declined by 44% YoY and is dampened by limited construction starts. Alternatively, Nashville remains one of the most active multifamily development markets in the nation, leading retailers to tie development to neighborhood necessities. A notable project includes the live-work-play project at the Margin District in Franklin set for 2027 delivery.
Vacancy rate as of Q2 2026
Vacancy jumped by 0.7% since Q4 2024 but has held stable since Q3 2025. Submarkets like Cool Springs / Franklin, Downtown, and Mt. Juliet / Lebanon have contributed positive absorption metrics, limiting the impact of big-box churn. For the second consecutive quarter, the North Nashville submarket saw the largest availability increase at +1.8% YoY.
Average market asking rent as of Q2 2026
Nashville has seen a sustained period of asking rent growth since 2018. After a peak in growth rate correlated with population inflow during the wake of the pandemic, the market has moderated. This comes in the wake of stable leasing activity and measured absorption compared to prior periods. While a balanced outlook remains, stable growth highlights Nashville as a key US retail market.
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