Nashville Retail Market Report
Rapid Net In-Migration and Domestic Tourism
Backbone Cement Nationally-Tight Vacancy
Positive absorption streak reaches 10 quarters. The metro’s vacancy rate entered April 2023 tied for the fourth-tightest figure among major U.S. markets, at 3.2 percent. Net absorption has exceeded 125,000 square feet in every quarter going back to the final period of 2020, outpacing new supply by more than 1.2 million square feet across those 30 months. The depletion of available retail stock has turbocharged rent growth, with the average marketed rate in March eclipsing the trailing five-year mean by about 18 percent. Near-term economic headwinds are expected to soften tenant demand this year; however, the proliferation of the local consumer base bolsters optimism for long-term sector strength. Building off last year’s record-setting in-migration tally of more than 38,000 new residents, an additional 150,000 people are projected to move to Nashville over the next decade, aiding consumer demand.