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Downtown Nashville Attracts Major Office Leases as Market Rents Hit New Highs

Nashville's office sector is continuing to see growth in rents and that's not anticipated to stop anytime soon, according to a fourth-quarter market report from Savills. Rent rates hit what the real estate firm called a "high" of $36.34 per square foot full service at the end of 2024, from $32.97 a year ago. Class A rates went from $35.77 per square foot in the fourth quarter of 2023 to $39.68.

Overall, rents are "expected to increase further as new premium office space is slated to deliver in 2025," said Savills.

Inventory ticked up to 51.8 million square feet in the last three months of the year compared with 47.8 million, 12 months prior. Also, the availability rate went up by 3.4 percent over the same period.

Meanwhile, leasing showed some mixed results. While the 0.6 million square feet in the fourth quarter was down 100,000 square feet year-over-year — three million square feet in total was leased during the full year 2024. The latter figure is up 300,000 square feet from 2023.

Confidential commanded the largest lease in the fourth quarter thanks to its relocation deal to take 63,111 square feet. That was followed by Raymond James & Associates, Inc., which renewed for 36,318 square feet, and Industrious' 30,718 square foot new lease; both transactions were in the Downtown submarkets. Also, The Putting Zone had a new lease for 29,000 square feet in Airport South, and Eco-Energy LLC struck a 28,223 square foot renewal in Cool Springs.

Reprinted with permission from the Thursday, 30 January 2025 05:50:38 EST online edition of GlobeSt © 2025 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.