Nashville Retail Market Report
Population Gains Facilitate Absorption Trends;
Downtown Fundamentals Continue Improving
Builders follow household formation patterns. Developers are set to complete more space this year than they did in 2021, with the complexion of the pipeline indicative of an expansion-friendly retail market. Much of the construction is built-to-suit and in the metro's fastest-growing areas. In the core, most of the retail space being added is part of mixed-use developments. Urban living is becoming more popular in Nashville as the number of corporate and tech jobs in the CBD rises. In response, retailers have eagerly leased space in foot traffic-heavy areas, looking to support the rise in Downtown's population. Recent commitments by these vendors have reduced the core's vacancy rate below the local year-end 2019 recording.