Although sublease space "remains an impediment to market recovery," Darwin Pankey, president of the company, tells GlobeSt.com, "sublease space fell below 800,000 sf during second quarter."
Asking rental rates average nearly $18 per sf overall. Rental rates in the West End/Belle Meade area are the highest in the market, averaging $19.94 per sf, even though more than 45,000 sf were vacated in that submarket during second quarter.
Vacancy in the central business district is 13.2%, a marginal decrease since the previous quarter, and office vacancy in the Brentwood area is 14.5% A new, class-A, 120,000-sf building, Gateway II, is scheduled to break ground in Brentwood later this year.
The area southeast of the airport is the second largest office submarket, next to the Nashville CBD.
Even with the second-quarter addition of 283,789 sf of renovated space at the Two Rivers Corporate Center southeast of the airport, the vacancy rate is just 20.6%. Without that addition, according to the survey, the rate would have been 16.3%, a decrease from 16.8% in first-quarter 2002.
The Nashville Grubb & Ellis/Centennial quarterly survey encompasses 297 office buildings with a total of 24.4 million sf of rentable office space.
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