Sales activity is surging for industrial product in Nashville thanks to the city's strong demographic trends. In fact, total volume in 2025 climbed to $1.8 billion — a new record for the market, thanks to the $372.64 million in transactions seen in the fourth quarter, according to a report from Colliers.
This comes as Middle Tennessee continues to grow its population and appeal with its favorable location, which is within a 24-hour drive for more than half of the country, the brokerage noted.
"Those fundamentals have drawn a wave of new development and national tenants across e-commerce, logistics, and consumer goods, pushing investment activity to historic highs," it said.
Ares Management made the largest buy in the fourth quarter, with its $128.4 million acquisition of a three-building property near the Nashville International Airport. North Haven Net REIT and Create Reimagining Renewables were the next closest, with buys of $38.20 million and $31 million, respectively.
Volume for leasing was also strong, with 2025 seeing 13 million square feet of activity, up 4.8 percent from the previous year. The top lease revealed in Colliers' report was Quanta Manufacturing's 564,300 square foot signing in the Southeast submarket of Nashville.
Net absorption increased by a million square feet year-over-year to 2.18 million square feet. Additionally, rents rose to $10.56 per square foot, from $9.94 per square foot. Now, rent growth is outperforming the national average by over 200 basis points.
However, the vacancy rate at the end of 2025 rose to 4.1 percent, up 20 basis points year-over-year. Yet, this level remains roughly 280 basis points below the national average.
From a supply standpoint, deliveries cooled to about 1.5 million square feet, from 2.04 million square feet. That came as construction increased to 4.2 million square feet in the fourth quarter of 2025, up by 200,000 square feet from the end of 2024.
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