Nashville Office Market Report
2023 Investment Forecast
Tech Sector Headwinds Shift Availability Upward;
Investors Optimistic About Metro’s Long-Term Prospects
Diverse corporate ecosystem helps Nashville mitigate short-term hurdles. Of the headline leases already signed for this year, a mix of tech, legal and finance firms will combine to take a net of 1.2 million square feet off the market. This should help meter upward pressure on availability, which has remained above 15 percent since late 2020. Demand also appears steady further out, with nearly two-thirds of the active pipeline accounted for entering this year. However, a general contraction in the metro’s traditional office-using sectors will subdue growth in 2023, pushing up short-term vacancy. Some major employers present in the market, such as Amazon, have also scaled back physical expansion plans as portions of the labor force shift to hybrid or remote schedules. Quarterly leasing activity holding below typical measures from 2017 to 2019 indicates that availability is unlikely to return to the pre-pandemic level in the near- to mid-term. Nevertheless, the prominent tech sector and educated labor pool that Nashville has accrued provide a solid foundation for long-term growth in upcoming expansionary cycles.