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Office Market Report Q3 2022

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Flight-to-Quality trend continues in Nashville Office Market

 

Key Takeaways

  • Nashville's office absorption rebounded in Q3 at 157,770 square feet, bringing the YTD absorption to 7,000 square feet
  • Market vacancy decreased slightly this quarter, an improvement over the previous year
  • Average rental rates continue to increase across the market, as tenants flock to quality space

 

Nashville’s office market experienced improvement in the third quarter compared to the first half of 2022. The market absorbed 157,770 square feet in Q3, rental rates continue to hit new records, and leasing volume increased by 25%. Newly-delivered Class A amenity-rich space has become a magnet for tenants, as many of the new projects — existing and under construction — are over 50% leased. This flight-to-quality follows the national emerging trend that is fueled by employers wanting to attract new talent and retain employees. On the other hand, newly marketed sublease space came online in Q3, which offset the vacancy. This will be an important factor to continue monitoring over the next few quarters, as tenants continue to evaluate their space needs.


Colliers Nashville  Office Market Report Card

Office Market Report Q3 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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