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Industrial Market Report Q2 2022

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Another Strong Quarter for Nashville's Industrial Market

Key Takeaways

  • Industrial absorption exceeded positive 2.9M square feet for Q2 2022, bringing the YTD absorption to 4.1M square feet
  • Market vacancy stands at 3.4%, remaining under 4% over the last 11 consecutive quarters
  • Nashville development total remains elevated, with over 8.3M square feet under construction

 

According to data from Oxford Economics, Nashville’s net job growth of 4.4% from Q1 2020 to Q2 2022 ranks 5th highest of the 50 largest metros in the nation. Nashville is forecasted to see annual job growth of 1.8% from 2022 to 2026, above the U.S. growth of 1.3% over the same time frame. Looking at job performance by industrial-space users, Nashville’s trade, transportation, and utilities sector increased by 5.8% from June 2021 to June 2022 while manufacturing grew 2.4%. Nashville’s industrial market had a solid Q2 performance, ending with positive 2.9M SF absorption, and strong demand has kept vacancy at record lows. Recorded from the Nashville Area Chamber of Commerce, industrial-using companies announced a combined 2,034 new jobs at mid-year 2022, with 71% in the manufacturing sector. Notable announcements include Tritium’s manufacturing operation (500 jobs); REI’s new 400,000 SF distribution center (280 jobs) and Ultimate Linings (50 jobs), all located in Lebanon. The increased need for warehouse/distribution space during the pandemic has created tailwinds for Nashville’s industrial market, and industrial-using employment has exceeded pre-pandemic levels. As such, the market is well-positioned for a strong half of 2022.


Nashville Industrial Market Report Card_1

Industrial Market Report Q2 2022

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Katie Lester

Research Director

Nashville

 

Katie joined Colliers in the fall of 2014. She works closely with her advisors, third-party data sources, sales associates and members of the marketing staff to conduct high quality and accurate market analysis, research and reporting for the company and Colliers USA.

Katie plans and executes the company’s research strategy including database creation, management and maintenance, data interpretation, presentation, and marketing of the data, economic and financial analysis, and Colliers International Quarterly Reports. In addition, she is responsible for obtaining the market and industry data for market report production and distribution and executes web searches for pertinent data and information related to research and analysis of local, regional and national trends that influence the commercial real estate market.

 

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