Knoxville Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $22.82 2023 Avg. Asking Rent
  • -1.62% Y-o-Y Avg. Asking Rent Change
  • 8.44% 2023 Office Vacancy Rate
  • $100.6M2023 Total Office Sales
  • $114.63Avg. Sale Price/SF

Knoxville office price per square foot in 2023 was $22.82 on average. This marked a -1.62% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 8.44% across all asset classes combined. The 9 transactions that closed here throughout 2023 amounted to a total sale volume of $100.6M. Knoxville office space commanded an average sale price per square foot of $114.63.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Knoxville Class A & A+ Office Space$24.54
  • Knoxville Class B Office Space$21.05
  • Tennessee Class A & A+ Office Space$31.18
  • Tennessee Class B Office Space$22.11
  • Tennessee Class C Office Space$26.18

Knoxville, TN Office Asking Rents by Class

2023 Office Vacancy Rates in Knoxville

Submarket Asking Rents Vacancy Rates
Farragut - Woodland Acres $24.94 20.61%
Knoxville - University $23.28 7.95%
Knoxville - Downtown $21.77 5.44%
Cedar Bluff - Hardin Valley $19.55 10.90%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Knoxville market was 8.44% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Knoxville was 5.44% in the Knoxville - Downtown submarket, while the highest office vacancy in the market was 20.61%, recorded in Farragut - Woodland Acres.

Office Spaces for Rent in Tennessee

Knoxville Office Sale Price per SF

  • $114.632023 Avg. Price per SF
  • $100.6M2023 Office Sales Volume
  • 92023 Number of Transactions

Knoxville, TN Sale Price per SF Trend

  • Knoxville Avg. Sale Price per SF in 2023$114.63
  • Tennessee Avg. Sale Price per SF in 2023$168.53
The sale price for office space in Knoxville averaged $114.63 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Tennessee average office sale price during the same time period was $168.53 per square foot.

2023 Office Sales Volume

  • Knoxville, TN Total Office Sales Volume in 2023 $100.6M
  • Knoxville, TN Total Number of Office Sales Closed in 2023 9
A total of 9 deals closed on the Knoxville office market in 2023, adding up to a yearly sales volume of $100.6M. Notably, the largest transaction on the market saw 9721 Sherrill Blvd change hands for $35,000,000 on 3/31/2023.
Data provided by Commercial Edge

Coworking Spaces in Tennessee

2023 Office Construction in Knoxville, TN

  • Knoxville, TN Total SF completed in 2023 47,346

During 2023, 47,346 square feet of new office space were delivered across the market. At the close of 2023, the Knoxville office inventory included 1 buildings equal to or larger than 25,000 square feet, which comprised 47,346 square feet of office space.

Largest Office Properties Recently Completed in Knoxville
Office building Address SF Completed
New Office Condo 140 Legacy View Way, 37918 2,620 2023
Parkside Drive Class A Office with View Dynamic Glass 10142 Parkside Drive, 37922 81,960 2019
The Markets at Choto 12346 Northshore Dr. , 37922 5,500 2016
12748 Kingston Pike 12748 Kingston Pike, 37934 170 2010
Brookview Town Centre - Brookview Promenade Office Building 265 Brookview Centre Way, 37919 190,000 2009
11470 Parkside 11470 Parkside Dr, 37934 22,032 2009
Two Lakeside Centre 2095 Lakeside Centre Way, 37922 96,336 2008
901 Lovell Road 901 Lovell Rd, 37932 5,000 2008
901 Lovell Road 901 Lovell Rd, 37932 5,000 2008
4662 Holston Dr 4662 Holston Dr, 37914 5,000 2008

Worth noting among recent office completions on the Knoxville market is New Office Condo, which is currently the largest new office development in the city, at 2,620 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Knoxville commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.