MARKET TRENDS
- Nashville's vacancy rate rose 40 basis points (bps) quarter over quarter to 6.3%, the highest in five years. Over 7.7 million square feet (msf) of deliveries year to date outpaced net absorption of just 3.0 msf, leaving tenants with numerous space options.
- Nashville's asking rental rates rose by 8.6% quarter over quarter, reaching $9.17 per square foot (psf). This marks a 41.7% increase compared to the five- year average, fueled by heightened tenant demand for high-quality space amidst rising construction costs.
- Major renewals, like Geodis' 1.0 msf at Speedway Industrial Park and Fideltone's 236,000 sf in the Wilson County submarket, highlight Nashville's position as a key logistics hub due to its central location and proximity to major transportation corridors.