MARKET TRENDS
- Nashville's vacancy rate rose to 5.7% in Q4 2024, an increase of 150 basis points (bps) year over year. This was fueled by 7.8 million square feet (msf) of new deliveries in 2024, significantly exceeding the five-year quarterly average of 2.0 msf, leaving tenants with ample space options.
- Nashville’s average asking rent rose by 20.5% year over year, reaching $9.12 per square foot. This marks a 38.2% increase compared to the five-year average, fueled by heightened tenant demand for high-quality space amidst rising construction costs.
- Net absorption in Q4 2024 totaled 1.5 msf, bringing the 2024 total to 4.6 msf, with the largest move-in of Q4 taking place in the North submarket with Shoals Technologies moving into 638,400 square feet (sf) at 1500 Shoals Way.