The Nashville Commercial Real Estate Market

Shanti Ryle

November 4, 2025

A Bridge in Nashville connecting both sides of a river

Key Takeaways

As of October 2025, Nashville ranks among the fastest-growing U.S. CRE markets, supported by a metro population above 2.1 million, household incomes about 10 percent higher than national averages, and a cost of living roughly 2 percent below the U.S. benchmark.
The job market remains one of the city’s strongest economic drivers with 14 percent employment growth from 2018 to 2023, unemployment near 3 percent, and a metro GDP now exceeding $168 billion.
Industrial real estate continues to lead the region with a 4.4 percent vacancy rate, 3.8 million square feet of year-to-date absorption, and sustained demand from distribution, manufacturing, and logistics users.
Office and retail conditions show measurable stability, with office vacancy beginning to ease as recent projects lease up and retail availability holding near 3.7 percent due to limited new development and consistent consumer activity.
Multifamily demand remains elevated, with more than 10,000 units absorbed over the past 12 months and over 14,500 units under construction across the metro as of Q2 2025.

Nashville has grown from a regional standout into one of the most closely watched CRE markets in the country. With steady job growth, a strong talent pipeline, and a reputation for creativity and innovation, the city continues to attract investors, developers, and businesses looking to plant long-term roots.

Crexi supports buyers, brokers, and owners across Nashville and the surrounding communities, including Franklin, Murfreesboro, Hendersonville, and Lebanon, by offering access to property data, active listings, and marketing tools built for modern CRE workflows. More than $615 billion in property value has been closed using Crexi, and over $7 trillion in total assets have been marketed on the platform.

Nashville’s dealmakers use Crexi every day to research opportunities, share listings, manage leads, and move transactions forward with confidence.

The cityscape of Downtown Nashville, Tennessee

Nashville Commercial Real Estate Market Overview

Nashville’s appeal runs deeper than its “Music City” nickname. The city blends a thriving creative identity with a powerful economic engine driven by healthcare, technology, logistics, finance, and higher education. Major institutions like Vanderbilt University, a growing tech workforce, and a central U.S. location give the region staying power. And as people continue to move in for work and lifestyle benefits, housing, retail, and commercial demand remain in focus.

In recent years, Nashville has seen rapid expansion - cranes in the skyline, new mixed-use districts, and significant corporate investment. Today, the market is shifting toward a more balanced phase. Growth is still present, but with a pace that feels more measured than past surges. Investors and developers are adjusting expectations as pricing stabilizes and capital becomes more selective.

At the same time, interest in the region remains high. Industrial activity has held strong, new residents continue to arrive at a healthy rate, and builders are still active, though more strategic. Nashville’s CRE landscape is maturing, moving from a breakout boom into a cycle defined by thoughtful development, disciplined capital, and long-term confidence in the region’s fundamentals.

The result is a market where opportunity remains, but smart strategy matters. And for many, that kind of environment is exactly what makes Nashville worth watching.

Nashville Regional Context

Nashville continues to attract new residents from across the country, and that steady growth has reshaped the region over the past decade. People are moving in for work, for the lifestyle, and for a sense of momentum that you can feel across the metro area. Young professionals, families, and remote workers all see Nashville as a place where careers and community can grow side-by-side.

More than 2.1 million people live in the Nashville-Davidson-Murfreesboro-Franklin metropolitan area.
The city of Nashville, as well as its surrounding communities, has shown consistent growth in recent years.
The median age is 37, which is about 2 years younger than the overall figure in the US, according to data from CensusReporter.org.
The per capita income is $47,263, and the median household income is $84,685, which are both figures that are about 10% higher than the amounts in the US.
In Nashville, the cost of living is about 2% lower than the national average.

Nashville's Broadway district has many bars, venues, and late-night spots to catch live music

Nashville Job Market

Nashville’s job market continues to be one of the strongest in the country, fueled by a diverse base of employers and steady business investment. Healthcare remains the region’s anchor industry, supported by Fortune 500 companies, world-class hospitals, and a deep talent pool. Tech, logistics, and creative industries also play a growing role, attracting skilled workers and new companies each year.

Major developments, including the new enclosed Nissan Stadium and community facilities surrounding it, signal long-term confidence in the region’s future. With well-known universities feeding the workforce and a central U.S. location that appeals to employers, Nashville continues to build on its reputation as a place where careers and companies can thrive.

In its 2025 report, the Milken Institute reported 14% job growth in Nashville from 2018-2023, just one of many factors contributing to its strong economy.
Unemployment rate is 3% (as of August 2025), which is significantly lower than the national rate.
According to data from the St. Louis Fed, the metropolitan area's GDP has consistently increased since 2015, with the most recent figures estimating it to be over $168 billion.
The Nashville Chamber of Commerce notes Nashville is ranked among the nation’s top ten cities for business, jobs and new talent, and tech growth.
Nashville was ranked as the country’s number-two best U.S. metro for job growth and income, according to a report analyzing various government data sources.
Target industries in Nashville include health care, music and entertainment, advanced manufacturing, corporate operations, distribution and logistics, and technology.
Top regional employers include Vanderbilt University Medical Center and Monroe Carell Jr. Children’s Hospital at Vanderbilt, as well as HCA Healthcare, a Fortune 500 company. Other major employers include Amazon, Nissan, and Ascension Saint Thomas.
More than 42% of residents hold a bachelor’s or postgraduate degree, a rate about 20% higher than in the US.
The three largest universities in Nashville are Vanderbilt University, Tennessee State University (TSU), and Belmont University. Each offers a diverse range of academic programs.
Nashville is within a 2-day drive of 70% of the US population, and its transportation infrastructure includes major interstates I-40, I-65, and I-24 and the Nashville International Airport (BNA).
The metro area's strategic central location places it within a two-day ground delivery reach of 72% of the U.S. population, making it a prime hub for logistics and distribution.
City initiatives like Partnership 2030 aim to nurture economic prosperity through efforts such as job creation, improved livability, and workforce support.

A sculpture on the other side of the river frames Downtown Nashville

Nashville Industrial Market

Nashville’s industrial market remains one of its strongest real estate sectors, supported by sustained demand from logistics, manufacturing, and distribution users. Even with new space coming online, vacancy has stayed low, and leasing activity continues at a healthy pace.

Companies moving or expanding into the region have filled millions of square feet this year, especially in submarkets near major transportation routes. At the same time, developers are still building, though at a more measured rate than in recent years, reflecting a market that is active but also becoming more selective.

Market overview (Cushman & Wakefield Q3 2025 Nashville Industrial Report)

Inventory: 259,689,472 SF
Vacancy rate: 4.4%
Under construction: 3,200,938 SF
Deliveries: 3,474,412 SF
Net absorption: 3,838,430 SF (YTD)
Leasing activity: 6,851,865 SF
Key leases by tenant: RB Distribution INC (312,000 SF), Geodis Logistics LLC (270,400 SF), Goggin Warehousing (267,596 SF)
Largest submarkets: Industrial CBD, Southeast, East

Crexi Insights

These are the most recent Nashville industrial lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $16 per year
Median SqFt/listing: 12,100
Days on market: 181
Total listings on Crexi: 133 spaces

For Sale (active)

Median asking price: $3.8 million
Price/SqFt: $267
Median SqFt/listing: 10,800
Days on market: 157
Total listings on Crexi: 25

Sales Comps (past 12 months)

Median sold price: $2.6 million
Sold price/SqFt: $241
Total sales volume: $635.2 million
Median SqFt sold/transaction: 7,286
Total SqFt sold: 1.7 million
Days on market (median): 592

Find Nashville industrial space for rent.

A sunset view of downtown Nashville from the east side of the river.

Nashville Office Market

In Nashville’s office market, activity has remained steady as companies rethink space needs and return-to-office plans evolve. Vacancy has begun to pull back after several years of new supply, helped by solid leasing momentum in key submarkets like Midtown and Cool Springs. While construction has slowed, many of the buildings delivered in recent years are steadily filling, signaling a healthier balance between supply and demand. Nashville’s high-quality office options are seeing strong interest, and older buildings are increasingly being repositioned to meet changing need.

Market overview (Cushman & Wakefield Q3 2025 Nashville Office Report)

Inventory: 51,506,438 SF
Vacancy rate: 16.7%
Net absorption: 645,971 SF (YTD)
Under construction: 231,320 SF
Key lease transactions by tenant: State of Tennessee (DCS) (64,674 SF), Built Technologies (35,272 SF), South College of Tennessee Inc. (34,867 SF)
Largest submarkets: Nashville CBD, Cool Springs/Franklin, Midtown

Crexi Insights

If you're in search of the freshest data on Nashville's office market, turn to Crexi Insights as your first choice. The platform provides up-to-date data on the city's commercial real estate market, including lease trends, sale listings, comparables.

Here are the latest stats and trends as of October 2025:

For Lease (active)

Asking rate/SqFt (median): $26 per year
Median SqFt/listing: 1,488 SF
Days on market: 175
Total listings on Crexi: 653 spaces

For Sale (active)

Median asking price: $2.1 million
Price/SqFt: $407
Asking cap rate: 6.7%
Days on market: 134
Total listings on Crexi: 97

Sales Comps (past 12 months)

Median sold price: $1.7 million
Sold price/SqFt: $300
Total sales volume: $367.5 million
Median SqFt sold/transaction: 3,414 SF
Days on market (median): 207

Find Nashville office space for rent.

A mural in Nashville that reads, "Looking Pretty, Music City"

Nashville Retail Market

Nashville’s retail market reflects the city’s steady population and income growth, with brands continuing to chase well-located storefronts in busy corridors and fast-growing suburbs. Space remains tight, and even older centers are seeing healthy demand as retailers look to get into the market wherever they can.

Construction has inched forward, but new supply is modest compared to the pace of leasing, keeping availability low and pushing rents higher. With strong consumer spending and ongoing in-migration, retail owners and operators are watching another solid year unfold across the region.

Market overview (Colliers Retail Market Report Q2 2025)

Inventory: 78,070,582 SF
Vacancy rate: 3.7%
Under construction: 621,930 SF
Deliveries: 141,813 (YTD)
Net absorption: 159,388 SF (YTD)
Largest submarkets: Rutherford County, Cool Springs/Franklin, Southeast Corridor

Crexi Insights

Nashville retail lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

Asking rate/SqFt (median): $25 per year
Median SqFt/listing: 2,007 SF
Days on market: 172
Total listings on Crexi: 466 spaces

For Sale (active)

Median asking price: $2.5 million
Price/SqFt: $692
Asking cap rate: 5.5%
Days on market: 116
Total listings on Crexi: 136

Sales Comps (past 12 months)

Median sold price: $1.3 million
Sold price/SqFt: $344
Total sales volume: $737 million
Sold cap rate: 5.8%
Median SqFt sold/transaction: 3,814 SF
Days on market (median): 147

Find Nashville retail space for rent.

A daytime view of smaller office and apartment buildings in the city of Nashville

Nashville Multifamily Market

The multifamily market in Nashville continues to lean on strong population growth and steady job gains, even as new units work their way through the pipeline. Renters are still arriving faster than supply can fully catch up, and younger households are playing a big role in keeping demand healthy across the metro.

Vacancy has ticked up from its lowest points, but lease-ups remain active and absorption numbers signal that new product is being met with real interest.

Market overview (Lee & Associates Q2 2025 Market Report)

Total housing units: 926,337
Inventory units: 237,391
Vacancy rate: 10%
Average effective rent: $1,639
Absorption units: 10,384 (12 month)
Under construction: 14,586 units
Top sale transactions: 2010 W. End Avenue (358 units); 103 Belinda Parkway (190 units); 2126 Byrum Avenue (83 units)