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Market Report

Nashville Office Market Report

4Q 2023

Tenants’ Flight-to-Quality Apparent as Class A
Leasing Activity Amplifies Across Nashville

Return to in-office operations prompts corporate decisions. Nashville was one of just two primary or secondary U.S. markets to record both suburban and CBD vacancy declines over the yearlong stretch ending in June. The addition of nearly 14,000 traditionally office-using positions over that period played a role, with recent hiring requiring some companies to lease additional space. Rather than renewing existing leases, other firms are committing to high-quality floor plans in amenity-rich buildings with the goal of retaining employees and attracting talent. The latter trend is evident in the CBD. Here, Class A vacancy fell 270 basis points over the past year to a rate — 19.7 percent — that matches its long-term subsector average. Additionally, nearly three-fourths of professionals at CBD-located firms had resumed in-office work as of April. Should this count rise, the area may be in line for further demand gains.

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