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Retail Market Report Q2 2022

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Nashville's Retail Market Vacancy Tightens in Q2 2022


Key Takeaways

  • Retail absorption exceeds positive 413,418 square feet in the second quarter, bringing the YTD absorption to positive 598,377 SF
  • Vacancy decreased in Q2 2022 to 4.3%, down 50 basis points over Q1
  • Nashville has 990,340 square feet of retail space under construction, with new deliveries totaling 10,693 square feet so far for 2022


Nashville’s retail market took a hit in 2020, but key indicators have shown that Nashville’s economy has recovered quite well, a positive for the metro’s retail industry. Leisure and hospitality employment in the Nashville MSA grew 18.3% from June 2021 to June 2022. Vacancy has begun inching towards pre-pandemic levels, resulting in strong absorption at mid-year 2022, and is projected to hold steady over the next few quarters. As such, Nashville is expected to remain a tighter market than the national average, which will likely keep rent levels high. Nashville’s year-over yearrent growth of 11.3% far outpaces the U.S. benchmark of 4.3% YOY rent growth. Retail rates in Middle Tennessee track over 60% above the metro’s pre-Great Recession peak. Retail development is also elevated across the region following a record low in new supply levels in 2021, with the majority of the projects being part of a mixed-use  development or build-to suit spaces.


Retail Market Report Q2 2022

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Katie Lester

Research Director



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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