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Long-Term Need for Additional Supply Present
Even as Headwinds Emerge in Nashville
Demand for space accelerates farther from city center. A handful of submarkets entered 2025 with vacancy rates below 1 percent, including Mt. Juliet-Lebanon as well as Dickson and Robertson counties. Already strong space demand in these outlying areas, combined with constrained supply, could lead to even greater rent gains; the average asking rate jumped at least $10 per square foot in both Dickson County and Mt. Juliet-Lebanon last year. Multi-tenant space across multiple outlying areas has nearly reached complete occupancy, emphasizing the acute undersupply in these rural communities. Aggregated across the metro, however, local retailers have shown a preference for single-tenant space, as the marketwide segment vacancy rate entered this year 170 basis points below its multi-tenant counterpart. Single-tenant demand last year was highest in Bellevue-West Nashville, Hendersonville-Gallatin and Rutherford County, where 315,000 square feet was absorbed on net across the three submarkets.