Update: Why Demand's Still Strong For Nashville Office
Are there any signs of a slowdown in the pace of leasing for Nashville office space, especially in the CBD? No, says CBRE VP Morgan Hillenmeyer.
"Demand is matching supply for most product types right now," Morgan tells us. There was about 3.6M SF of office space under construction in Q2 according to CBRE Research, which sounds like it might be too much to handle—except that it's over 80% pre-leased. "The overall office vacancy in Nashville in Q2 2016 was at an all-time low at 6%."
Even a growing amount of spec space isn't going to overbuild the market any time soon, Morgan adds. "While there's more speculative development than there has been historically in Nashville, the city has evolved. More people and companies continue to move here, which has supported new development well. As long as development stays measured and new construction rents are acceptable, vacancy should remain low.”
