Nashville Office Market Report

Absorption remains positive, despite a rise in vacancy. Nashville was one of the top-performing major markets for traditional office-using job creation last year, a dynamic that placed the metro’s count of professional and business services positions at a record high entering 2024. This hiring coincided with a consistent number of lease executions for spaces larger than 20,000 square feet, with law firms, government and video game-related companies among those inking notable commitments. Many of these agreements have 2024 move-in dates, which, based on the various quality of buildings involved, will support net absorption across property tiers this year. Further aiding absorption, approximately half of the 1.7 million square feet slated for delivery this year was accounted for at the onset of 2024. These factors will allow Nashville to be one of just five major U.S. markets to record a fourth consecutive year of positive net absorption. Still, the impact of companies downsizing their footprints will be felt, with overall Class A vacancy reaching a record high and the Class B/C rate holding above its long-term average.