NASHVILLE, TN—Nashville’s commercial real estate market is showing momentum on (almost) all fronts. Xceligent‘s Nashville 2nd Quarter 2014 Market Reports detail strong metrics that should turn industry watchers’ heads.
For example, Nashville’s office market continues its upswing with another 273,601 square feet of absorption in the second quarter. That puts Nashville’s office market at over 375,000 square feet of absorption so far this year.
According to Xceligent, there was strong activity in Brentwood’s office market during the second quarter, with nearly 200,000 square feet absorbed. With three leases each over 25,000 square feet, the firm calculates an all-time low vacancy rate of 2.4%.
Meanwhile, Sheds and 1201 Demonbreun—two office projects currently under construction—have inked several leases. ForceX is moving its headquarters to Sheds and Neal & Harwell Law Firm and William Morris Endeavor signed full floor leases at 1201 Demonbreun. Finally, Corizon Health announced plans to expand its headquarters and move to Highwoods Plaza II, backfilling the LifePoint vacancy from first quarter 2014.
Moving onto the retail market, Xceligent reports Nashville reached the mid-year mark on a “downward slope” with 233,000 square feet of negative absorption for the quarter and nearly the same for the year.
Three spaces over 80,000 square feet became vacant, bringing the overall vacancy rate up to 5.6%. This is good news for occupiers looking to expand. The Ryman Auditorium announced plans for a $14 million expansion and renovation project that Xceligent predicts will nourish the continuous growth of the music industry in Nashville. Also, Extended Healthcare inked the largest lease at Maple Row for 22,000 square feet.
Good news on the industrial side. Although Nashville’s industrial market had a rocky start this year, Xceligent reports it has reached the mid-year mark with nearly 1.8 million square feet of positive absorption for the quarter and nearly 900,000 square feet year-to-date.
According to Xceligent, Nashville’s bulk warehouse sector had the biggest impact with nearly 1 million square feet of positive activity. That dropped the the overall vacancy rate down to 8.4% from 9.5% last quarter.
In terms of specific deals, Hatch Stamping announced plans to spend over $17 million on a manufacturing plan in Portland, creating over 100 jobs. And Music City Productions signed a 286,000-square-foot lease at 444 Brick Church.