Nashville Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $30.46 2023 Avg. Asking Rent
  • -2.18% Y-o-Y Avg. Asking Rent Change
  • 16.94% 2023 Office Vacancy Rate
  • $151.4M2023 Total Office Sales
  • $238.77Avg. Sale Price/SF

Nashville office price per square foot in 2023 was $30.46 on average. This marked a -2.18% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 16.94% across all asset classes combined. The 7 transactions that closed here throughout 2023 amounted to a total sale volume of $151.4M. Nashville office space commanded an average sale price per square foot of $238.77.

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

  • Nashville Class A & A+ Office Space$35.82
  • Nashville Class B Office Space$25.49
  • Nashville Class C Office Space$24.87
  • Tennessee Class A & A+ Office Space$31.18
  • Tennessee Class B Office Space$22.11
  • Tennessee Class C Office Space$26.18

Nashville, TN Office Asking Rents by Class

Average office rent in Nashville rested at $30.46 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Nashville averaged $35.82 per square foot. Across all submarkets, class B office space recorded an average asking rent of $25.49 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $24.87 per square foot, on average. Comparably, statewide Tennessee average office rents by class in 2023 were: $31.18 per square foot for class A office space; $22.11 per square foot for class B office space; $26.18 per square foot for class C office space.

2023 Office Vacancy Rates in Nashville

Submarket Asking Rents Vacancy Rates
East Nashville $43.89 4.77%
Music Row - Vanderbilt $38.72 14.72%
Downtown $34.79 17.54%
Green Hills - Sylvan Park $34.10 21.30%
Far South Nashville $32.33 17.13%
West Williamson County $31.81 3.59%
MetroCenter $28.24 27.85%
Outlying Davidson County $26.01 12.68%
Donelson - Hermitage $25.02 14.04%
Airport $20.56 15.41%
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 Nashville market was 16.94% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Nashville was 3.59% in the West Williamson County submarket, while the highest office vacancy in the market was 27.85%, recorded in MetroCenter.

Office Spaces for Rent in Tennessee

Nashville Office Sale Price per SF

  • $238.772023 Avg. Price per SF
  • -17.52%Y-o-Y Avg. PpSF Change
  • $151.4M2023 Office Sales Volume
  • 72023 Number of Transactions

Nashville, TN Sale Price per SF Trend

  • Nashville Avg. Sale Price per SF in 2023$238.77
  • Tennessee Avg. Sale Price per SF in 2023$168.53
Nashville office space cost in 2023 marked a -17.52% change compared to the previous year. The sale price for office space in Nashville averaged $238.77 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

  • Nashville, TN Total Office Sales Volume in 2023 $151.4M
  • Nashville, TN Total Number of Office Sales Closed in 2023 7
A total of 7 deals closed on the Nashville office market in 2023, adding up to a yearly sales volume of $151.4M. Notably, the largest transaction on the market saw Baker Donelson Center, The change hands for $75,000,000 on 11/30/2023.
Data provided by Commercial Edge

Coworking Spaces in Tennessee

2023 Office Construction in Nashville, TN

  • Nashville, TN Total SF completed in 2023 927,523
  • Nashville, TN Total SF under construction in 2024 789,000

During 2023, 927,523 square feet of new office space were delivered across the market. At the close of 2023, the Nashville office inventory included 6 buildings equal to or larger than 25,000 square feet, which comprised 927,523 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 789,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Nashville
Office building Address SF Completed
500 28th Avenue North 500 28th Avenue North, 37209 45,000 2023
ONE 22 ONE 1221 Broadway, 37203 380,229 2022
TriStar Centennial Medical Center 335 North 24th Avenue, 37203 176,000 2022
17th & Grand 1001 17th Avenue South, 37212 166,534 2022
1030 Music Row 1030 16th Avenue South, 37212 126,000 2022
Broadwest - Office Tower 1600 West End Avenue, 37203 523,142 2021
Gulch Union 1222 Demonbreun Street, 330,346 2020
Peabody Plaza at Rolling Mill Hill 10 Lea Avenue, 37210 280,000 2020
18th & Chet 818 18th Avenue South, 37203 135,584 2019
Vertis Green Hills 4000 Hillsboro Pike, 37215 82,000 2019

Worth noting among recent office completions on the Nashville market is 500 28th Avenue North, which is currently the largest new office development in the city, at 45,000 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 Nashville 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.