The Nashville Commercial Real Estate Market

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Nashville is one of the fastest-growing economic centers in the United States and represents a hotbed of promising development and commercial real estate investment opportunities.

Crexi connects parties interested in Nashville commercial real estate to hundreds of viable properties and the tools needed to research, analyze, and acquire the perfect fit. 

Brokers in Nashville and those representing Nashville property for sale also rely on Crexi to manage leads, list assets and navigate more deals to closing, all while saving time. As of this writing, Crexi’s commercial real estate tools have assisted brokers in closing more than $300 billion in property value and marketing over $1.2 trillion in overall assets.

Crexi proudly supports Nashville, Franklin, Murfreesboro, Hendersonville, Lebanon, and the surrounding areas as the market’s fastest-growing online CRE platform.

The State of Nashville Commercial Real Estate 

Business is booming in Nashville, along with the commercial real estate market. The region’s affordable cost of living, robust employment growth and a business-friendly government are attracting business relocations, expansions, and in-migration from other parts of the country.

All commercial real estate sectors in Nashville are posting enviable performance statistics, with positive net absorption across the board, declining vacancy rates, record-breaking leasing activity, and increasing asking rents. Corporate giants such as Nissan North American, Dollar General, Bridgestone Americas, Amazon, and AllianceBernstein call Nashville home.

Over the past ten years, the population of Nashville has grown by nearly 15%, while some suburban communities surrounding the city boast population growth rates of 30% or more.

Nashville is the most populated city in the state and the capital of Tennessee. The city is located in the Tennessee Valley Region and has been a center of industry and transportation since the late 1700s. 

While manufacturing and transportation are still vital to the region’s economy, today Nashville boasts a diverse employment base driven by key industries, including corporate services, health care management, advanced manufacturing, distribution and trade, and of course, the music industry. Nicknamed the “Music City,” Nashville is known for music artists such as Dolly Parton, Taylor Swift, Billy Ray Cyrus, Sheryl Crow, and Willie Nelson.

Nashville Regional Breakdown

The Nashville metro area is the 20th fastest growing MSA, adding more than 343,000 new residents since 2010. According to the most recent census, the population of the City of Nashville increased by nearly 15% compared to 9% for Tennessee.

  • Nashville is home to over 689,000 people and nearly 2 million residents in the metropolitan area.
  • Nashville is the most populous city in Tennessee and the 21st most populous in the U.S.
  • The population of the City of Nashville grew by 14.7%, adding over 343,000 new residents since 2010.
  • Suburban counties around Nashville that have seen growth rates of +30% include Trousdale, Williamson, and Rutherford.
  • The median age in Nashville is 36.7 years, a little less than the figure for Tennessee and the U.S.
  • Median household incomes increased by 6.59%, while median property values grew by 8.86% year-over-year.
  • Per capita income is $37,696, and median household income is $70,262.

Nashville Job Market

Nashville has a proven history of rapid recovery from any downturn, and the recent pandemic is no exception. Nashville’s job opportunities continue to grow, with more businesses expanding and relocating to the metropolitan area. According to a recent report from WKRN News, Nashville is ranked as the #1 city with the most economic growth in 2021 and is poised for greater growth in the years ahead.

  • GDP of the Nashville-Davidson-Murfreesboro-Franklin, TN MSA is over $136 billion and has grown by more than 61% over the past decade.
  • Nashville’s employment growth is up 2.02% year-over-year, while unemployment is down to 2.8% (as of October 2021).
  • Sectors showing the most robust job growth include information, financial activities, professional and business services, leisure and hospitality, and trade and transportation.
  • Target industries in Nashville include supply chain management, corporate operations, advanced manufacturing, health care, and music and entertainment.
  • The largest employers in metropolitan Nashville include HCA Healthcare, Vanderbilt University Medical Center, Trane Company, Nissan North America, Amazon, and Macy’s Logistics.
  • Some of the 20 accredited colleges and universities in Nashville include Tennessee State University, Vanderbilt University, and Nashville State Community College.
  • Over 90% of the residents of Nashville are high school graduates or higher, while nearly 39% hold a bachelor’s degree or an advanced degree.
  • Nashville is within a 2.5-hour drive of 12 million residents via Interstate Highways I-24, I-40, and I-65.

The transportation infrastructure of Nashville includes the Port of Nashville with access to the Ohio and Mississippi Rivers, freight rail service in two central rail yards, and Nashville International Airport.

Nashville Industrial Market

Asking rents for industrial space in Nashville increased by double-digits, while vacancy is down to just 3.5%. This is in spite of the fact that over 7.6 million square feet of industrial space were delivered to the market, setting a record high. Investors like what they see in Nashville: they’re driving the price per square foot of industrial space up 12% year-over-year, with over 4.5 million spec construction underway.

  • Total industrial inventory: 198,019,483 SF
  • Average asking rent: $6.16 per SF per year, NNN
  • Vacancy rate: 3.5%
  • Absorption: 2 million SF through Q3 2021
  • New construction: 5.8 million SF under construction
  • Key lease transactions by tenant: Henkel, Ceva Logistics, ThermoFisher, Diakonia Group
  • Largest industrial submarkets: Interchange City, Northeast/I-65N Corridor, Elm Hill Pike/I-40

Discover Nashville industrial spaces for rent.

Nashville Office Market

A growing and diverse economy is helping to drive the demand for office space in Nashville. Employment and job creation are on the rise, vacancy rates are declining, net absorption is increasing, and asking rents are holding steady. New leasing activity in Nashville surpassed 460,000 square feet through Q3 2021.

  • Total office inventory: 46,573,695 SF
  • Average asking rents: $31.33 per SF year, full service gross, all classes
  • Vacancy rate: 19.1%
  • Absorption: 250,912 in Q3 2021
  • New construction: 2.5 million SF under construction
  • Key construction completions and leases: Amazon, LiveNation, Integrated Biometric Technology, Kaiser Aluminum
  • Largest office submarkets: Central Business District, Cool Springs/Franklin, Midtown, Brentwood

Discover Nashville office spaces for lease. 

Nashville Retail Market

Retail is rebounding in Nashville, powered by strong job growth and consistent in-migration. Net absorption of retail space surpassed 711,000 square feet through Q3 2021, with vacancy rates on the decline and overall asking rents up about 5% year-over-year.

  • Total retail inventory: 74,674,253 SF
  • Average asking rent: $21.34 per SF per year, NNN
  • Vacancy rate: 5.0%
  • Absorption: 711,974 SF through Q3 2021
  • New construction: 288,493 SF delivered through Q3 with 405,879 SF under construction
  • Key leasing deals: Yoga Six in Downtown, Gimmie a $5 in North Nashville, Sola Salon Studios in West End
  • Retail investment volume: +$419 million year-to-date, greater than the same time frame in 2020 and 2019
  • Largest retail submarkets: Rutherford County, Cool Springs/Franklin, Southeast Corridor, North Nashville

Discover Nashville retail property for lease.

Nashville Multifamily Market

The multifamily market in Nashville continues to outperform, thanks to a business-friendly government, growing population, and robust job market. Rents have increased 12.9% year-over-year, while vacancies are down to just 4.2%. Nashville is a location destination for people from all walks of life and corporations such as Amazon, AllianceBernstein, and Oracle. 

  • Total housing units: 806,178
  • Renter occupied: 34%
  • Total multifamily units: 201,545
  • Effective rent per unit: $1,350
  • Effective rent growth: 12.9% year-over-year
  • Vacancy rate: 4.2%
  • New construction: 6,718 units delivered in 2021 with 9,793 units in 36 new developments currently under construction
  • Recent sales: 1,844 units for a total transaction volume of $538 million since July 2021
  • Median household income: $70,262
  • Per capita income: $37,696

Discover Nashville multifamily property for sale.

How Crexi Connects Buyers and Tenants to Nashville. Commercial Real Estate

Buyers, principals, and businesses searching for Nashville commercial properties can deftly browse through hundreds of available assets using Crexi’s robust and intuitive search functionality. 

Those seeking properties in Nashville can navigate through hundreds of properties along dozens of search variables. Using Crexi’s tools, buyers and tenants can narrow searches by price or rate per square foot, cap rate, square footage, neighborhood, asset type and subtype, vacancy, and other parameters.

Interested parties can easily connect with the listing broker to learn more and begin acquisition conversations upon finding the perfect property. Crexi users can freely download PDFs, request more information, and even submit a letter of intent (LOI) directly on the page.

Intelligence Equips Investors with Data and Market Knowledge 

Data and research are essential tools for making informed property investment decisions, and Crexi Intelligence seeks to simplify the research process at every step. Intelligence equips property seekers with a database of up-to-date and highly relevant market information in convenient places, allowing them to analyze potential property investments.

Intelligence features a robust database of millions of property records and sales comparables. Intelligence also equips buyers and tenants with an Insights tab on every page, filling out relevant data concerning real-time Nashville market information such as average square footage, demographic data and traffic insights.

Intelligence is available to buyers, sellers, and tenants on a subscription basis.

How Nashville Brokers Thrive with Crexi

Brokers in Nashville harness Crexi to market more than 900 properties for sale and lease within the city limits. With the city’s explosive population and economic growth, brokers in Nashville list their assets on Crexi to a highly interested national database of potential buyers seeking to enter the region.

Commercial agents in Nashville also harness Crexi’s robust broker tools to manage leads, access real-time lead insights quickly, and amplify their marketing process to reach the broadest, most relevant audience pool possible. 

Nashville commercial brokers use Crexi to represent assets across different sectors, including: 

  • Land parcels
  • Industrial buildings
  • Multifamily developments
  • Mixed-Use buildings
  • Hospitality assets
  • Retail properties
  • Offices units
  • Non-traditional properties such as self-storage, data centers, etc.

With Crexi’s broker tools, Nashville brokers can easily navigate their clients’ properties from list to close in one convenient platform. Brokers can also manage due diligence paperwork and closing documents online using Crexi’s secure file storage.

These broker tools are free,but the full power of Crexi appears with Sale PRO, Lease PRO, and All PRO

Crexi PRO Dashboard 2020

Crexi’s All PRO Membership

Crexi PRO elevates broker workflows with advanced functionality designed to build pipelines and close more deals. Nashville brokers can access highly detailed lead and contact information and generate branded lead reports in seconds, simplifying operational processes and allowing brokers to prioritize connections and doing what they do best: closing deals.

PRO also automates highly successful marketing processes for broker users. Listings with PRO receive preferential placement atop demand-curated search result pages, getting them seen by thousands of actively seeking leads. Crexi also sends weekly email blasts to its user database, curating properties that earn 10-15% higher click-through engagement than industry standards.

Crexi PRO users also enjoy full access to Intelligence’s data tools and analytics at no added cost, equipping them with detailed market knowledge to better serve their clients.

With Crexi PRO, brokers can quickly and efficiently connect with nearly 70,000 leads who have explored Nashville properties in the last two years and more than 12.5 million leads nationwide who searched using Crexi in 2021.

On average, Crexi PRO users successfully attract 125% more leads and close up to eight times as many deals as non-PRO users. 

Contact support@crexi.com to learn more about All PRO.

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Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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