Nashville office market closes out 2022 on multiple high notes
Key Takeaways
- Nashville's office absorption recorded positive 273,653 square feet in Q4, bringing the total 2022 absorption to 287,885 square feet
- Market vacancy remained relatively unchanged this quarter, closing Q4 at 15.1%
- Average rental rates continued to climb at the close of 2022, despite the elevated vacancy
Nashville’s economy experienced some of the healthiest growth in the nation in 2022, with an annual job growth rate of 5.8%, exceeding the U.S. growth of 4.1%. Of note, its tech sector saw job growth of 14.9% in 2022, a token of Nashville's ability to attract and retain tech companies in previous years. Nashville also received high marks from the Urban Land Institute, ranking the #1 Market to Watch in its 2023 Emerging Trends in Real Estate Report. The report credited Nashville's tremendous and sustained job and population growth, and its economic diversity. Nashville's market fundamentals are unchanged and they will continue to keep Nashville's office market on track, evidenced by strong absorption in the second half of 2022 solid demand for quality office space, and overall confidence in the market.
