Nashville Office Investment Forecast
High-Profile Arrivals to the Core Improve Outlook;
Below-Average Vacancy Drives Suburban Investment
Tech entrants drive Class A leasing. Nashville has grown into an attractive destination for tech companies, highlighted by Amazon and Asurion filling a combined 1.5 million square feet in the second half of last year. At the same time, Oracle continues work on a major expansion at River North that's scheduled to deliver in 2023. These commitments in Downtown Nashville are the result of massive new developments that contain state-of-the-art amenities, retail access and vast public walking space. Other large-scale projects set to deliver in 2022 are pre-leased for the most part; however, speculative properties containing less than 100,000 square feet are struggling to add tenants. These buildings should see increased future demand as auxiliary firms to the major employers set up shop nearby. This dynamic is most evident in the suburbs. As large companies targeting high-end space shift focus to the core, support firms seeking lower rental costs are occupying smaller spaces in the suburbs. As new openings are filled and large employers expand, vacancy should contract in the core.