Nashville’s retail market continues to outperform many peer metros across the Southeast, supported by steady population growth, a diversified employment base and a prolonged period of limited new supply. Despite broader economic uncertainty and rising operating costs, fundamentals across Middle Tennessee remain healthy, with vacancy holding near historically low levels. Tight conditions, leasing That strength is reflected in current occupancy trends. Retail vacancy throughout the region sits at approximately 3.6 percent, signaling sustained tenant demand within a constrained inventory environment. New construction has remained limited as elevated material and labor costs have pushed many proposed developments outside workable underwriting thresholds. As a result, existing centers, particularly well-located neighborhood and suburban assets, continue to capture consistent leasing activity. Core, emerging submarkets Demand remains strongest in Nashville’s core and established growth corridors, including Green Hills, Vanderbilt/West End, 12th South/Wedgewood-Houston, Charlotte Pike/Sylvan Park and the Cool Springs pocket of Franklin. These areas benefit from dense residential growth, strong household incomes and reliable consumer traffic, supporting above-average rent levels. At the same time, tightening availability and rising barriers to entry in the urban core have accelerated growth across surrounding satellite markets. Submarkets such as Lebanon, Clarksville, Murfreesboro and Smyrna have emerged as meaningful retail …
With office leasing and development, we’re always looking forward to the next big thing. Nashville’s office market is no exception to that. Sometimes no news is good news, though. That may be the case with the metro’s office development, where only four projects totaling 279,320 square feet were underway at the close of 2025 — 44.1 percent of which was preleased. At the beginning of 2020, Nashville’s construction pipeline was nearly 10 percent of its inventory size — the second-highest share out of any U.S. metro. Since then, 8.5 million square feet of office product has been delivered, and despite overlapping with a global pandemic, nearly 80 percent of it has been leased — underscoring the market’s appetite for quality office space. While that office space has not been absorbed as quickly as some had hoped, market trends and activity suggest that nearly 90 percent of it will be absorbed by the end of 2026, proving the Nashville office market’s resilience. As we approach the end of the first quarter, Nashville’s office market is off to a good start, despite some uncooperative icy weather. Although local tenants continue to lead occupancy growth, sizable multi-market requirements have continued to increase, pushing …
As Nashville closes out 2025, the industrial market has solidified its reputation as a resilient powerhouse in the Southeast. With record investment volumes exceeding $2.2 billion and vacancy rates remaining well below national averages, the Nashville MSA continues to attract distributors, manufacturers, and data center-related businesses. This robust performance reflects a recalibration from pandemic-era highs while maintaining durable demand, setting the stage for balanced growth in 2026. Trends shaping the market Several macroeconomic trends are influencing Nashville’s industrial landscape. Nearshoring/onshoring and supply chain diversification have heightened the city’s appeal as a logistical hub. It is important to note that Nashville is strategically located within a day’s drive of over half the U.S. population. Locally, job growth has outpaced the national average, with Oxford Economics reporting a 1.1 percent increase in 2025, bolstered by gains in manufacturing, logistics and retail. Notably, Moody’s Analytics highlights transportation equipment manufacturing as a key driver, as automakers increase domestic production to mitigate tariffs. Further enhancing Nashville’s logistical capabilities, the planned expansion of air freight capacity at Nashville International Airport in 2027 is poised to solidify the region’s role in cargo throughput, supported by a robust highway network and a growing labor force. Despite broader economic …
In a world where volatility has become the norm in commercial real estate, Memphis stands out as a market defined by consistency. While other cities have experienced dramatic swings in vacancy, absorption and construction activity, the Memphis office market continues to follow a more measured pace. “Slow and steady wins the race” is more than a phrase — it’s a fitting summary of how Memphis has maintained balance amid national disruption. Stability in supply Over the past couple of decades, the total supply of office product in Memphis has grown at a moderate pace, sitting at nearly 28 million square feet today. This disciplined approach has kept vacancy within manageable levels and prevented the oversupply issues seen elsewhere. With no new speculative construction of size since 2009, the market has had time to absorb shifts in tenant behavior without being flooded with excess space. Demand aligns with supply Because supply has remained relatively static, demand has shifted in composition rather than volume. Like many cities, Memphis has seen a “flight to quality,” with tenants prioritizing modern, amenitized spaces over outdated properties — even if that means reducing their footprint. A company that once leased 30,000 square feet in a Class …
When people think of Memphis, they often picture its musical legacy, its storied riverfront and its role as a logistics powerhouse. But fewer realize that Memphis is also quietly becoming one of the Southeast’s most dynamic retail markets. Despite headwinds that have impacted large-format retailers nationally, Memphis continues to attract new-to-market brands, redevelop aging assets and create spaces that resonate with today’s consumers. Economic foundations Memphis is riding a wave of transformational investment across multiple sectors. Ford Motor Co.’s $5.6 billion Blue Oval City, where the company’s all-electric truck and battery plant will be built, is already reshaping the regional economy. Google’s announcement of a 1,178-acre, $10 billion data center and office campus in nearby West Memphis in Arkansas adds another layer of momentum, as does the creation of the world’s largest supercomputer by xAI. Coupled with St. Jude’s $10 billion expansion, these projects underscore the region’s growth trajectory and long-term employment base. In retail, the past year brought a temporary pause in net absorption, with approximately 317,000 square feet coming back to the market — primarily due to national big-box closures like Macy’s, Joann Fabrics and Big Lots. Yet these macro shifts don’t tell the whole story. By the …
The Memphis industrial market stands at a pivotal juncture in mid-2025, navigating temporary headwinds while maintaining the fundamental strengths that have established it as one of the Southeast’s premier logistics hubs. Despite recent challenges from global trade uncertainties and tariff negotiations impacting project timelines, the market’s long-term outlook remains positive with a foundation built on unparalleled logistics infrastructure and strategic advantages. Global logistics advantage Memphis stands as the ultimate global logistics hub, with unrivaled multimodal infrastructure creating competitive advantages few markets can match. The “FedEx effect” remains one of Memphis’ most significant economic drivers. This powerful multiplier — named for the company’s massive impact on the regional economy — has transformed Memphis into a critical node in global supply chains. With its World Hub at Memphis International Airport, FedEx connects businesses to hundreds of countries across multiple continents, processing millions of shipments while employing thousands across the region. Recent initiatives, including Network 2.0, One FedEx and the new Automated Sorting Facility at the World Hub, represent strategic investments in efficiency and integration that are likely to boost the Memphis industrial real estate market. Additionally, Memphis International Airport ranks among the busiest cargo airports in the Western Hemisphere and the second …
Nashville’s office market is navigating a transformative period as the city evolves into a national powerhouse for commerce, culture and corporate investment. Fueled by continued population growth, economic diversification and a wave of new developments, Nashville remains an attractive and resilient market despite headwinds in the broader commercial real estate landscape. Economic trends Nashville’s economic landscape continues to shift in ways that support long-term office market vitality. Population growth: One of the fastest-growing cities in the United States, Nashville continues to benefit from a steady influx of new residents. The expanding talent pool is a major driver of office demand as companies look to establish or expand their footprint in a market rich in skilled labor and cultural vibrancy. Diversifying economy: While music and healthcare have long been economic cornerstones, the city is now seeing strong momentum in sectors like technology, finance, professional services and logistics. These industries bring high-paying jobs and are increasingly seeking high-quality office space that reflects their evolving workplace needs. Return-to-office strategies: Like many U.S. markets, Nashville has witnessed the rise of hybrid work models. However, rather than diminishing the importance of the office, this shift is redefining its role. Employers are focused on right-sizing their …
Nashville’s industrial real estate market closed 2024 with a clear message: this metro is a logistics juggernaut, blending robust demand, strategic location and a dynamic investment landscape. With a vacancy rate ticking up to 4.1 percent in the fourth quarter amid new supply, yet absorption exceeding 4.2 million square feet year-to-date, the market’s resilience stands out. Rents climbed to $9.94 per square foot, and industrial sales topped $1.4 billion — a 37 percent surge year-over-year. The takeaway is unmistakable for stakeholders: Nashville’s industrial sector thrives on its ability to absorb growth while signaling new opportunities for 2025. Economic engines Macro and local economic trends underpin this strength. Nationally, e-commerce sales hit $308.9 billion in fourth-quarter 2024, a 9.4 percent increase year-over-year, according to Commercial Edge. This uptick amplifies demand for warehouse and distribution space. Locally, Nashville’s job growth moderated to 0.9 percent in 2024, according to Oxford Economics, down from 3.2 percent in 2023. But industrial sectors shone in the report: manufacturing jobs grew 2.2 percent and trade, transportation and utilities grew by nearly 0.5 percent. The Nashville Area Chamber of Commerce reported that 79 percent of 2024 business relocations and expansions involved industrial users, promising 3,309 new jobs. With …
Nashville’s multifamily sector has faced headwinds stemming from a wave of new deliveries over the past few years, similar to other high-growth areas across the country. Across this market, stabilized occupancy is currently 350 basis points below historical norms. Average market rents have declined nearly 3 percent from their 2022 peak, and concessions are widespread across several submarkets. However, despite these challenges, optimism is building around the Nashville’s outlook over the coming years. Investors are actively seeking well-positioned assets, anticipating what many believe will be the next strong cycle for multifamily assets in this market. Over the past three years, Nashville’s multifamily market has absorbed approximately 28,000 units, compared to roughly 30,000 new deliveries — creating a near-term supply-demand imbalance that contributed to recent softness. Nevertheless, the outlook is shifting. Only 17,000 units are expected to deliver between 2025 and 2027, while demand is expected to exceed this new supply materially, creating strong tailwinds for rent growth. In 2024 alone there were over 11,000 units of net absorption. New starts are few and far between, mostly concentrated in suburban submarkets where developers can build cost-effective, attainable housing. Elevated construction costs and higher interest rates continue to constrain development, pointing to …
The Nashville retail market has firmly established itself as one of the strongest and most dynamic in the United States. From luxury national chains to local entrepreneurial storefronts, retailers are increasingly drawn to the city’s diverse and resilient economy — and for good reason. Over the past decade, Nashville has been one of the fastest-growing cities in the country, with consistent year-over-year population and employment gains. This trajectory has been fueled by a favorable business climate, highlighted by the absence of a state income tax, as well as local policies that encourage corporate investment and relocation. The results are tangible: global and domestic companies alike have planted deep roots in Middle Tennessee. Major players such as AllianceBernstein, Amazon, Nissan, Bridgestone, Asurion and Deloitte have relocated or expanded here, joining long-standing Nashville-based giants like HCA Healthcare and Tractor Supply Co., both of which continue to grow their local footprint. This economic expansion has powered steady demand in the retail real estate sector. In just the past year, a wave of retailers — including Whataburger, In-N-Out Burger and 7-Eleven — have entered the Nashville market, underscoring its appeal to both national and regional brands. These additions further diversify a landscape already shaped …
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