MARKET TRENDS
- Nashville's vacancy rate rose to 6.2% in Q1 2025, an increase of 90 basis points (bps) year over year. However, a shrinking construction pipeline of 5.2 million square feet (msf), 50.0% below the five-year quarterly average, is expected to support vacancy stabilization over time.
- Average asking rents held steady at $8.84 per square foot (psf), up 1.3% year over year. Rates sit 30.2% above the five-year quarterly average, highlighting enduring demand for high-quality space in the resilient Nashville market.
- Despite lingering uncertainty around retaliatory tariffs, Nashville continues to attract tenants. Leasing activity remained robust in Q1 2025, with new leases outpacing renewals, driven in large part by Quanta Computer's 570,000-sf lease at 3815 Logistics Way.