Nashville Industrial Figures Report Q1 2026

Key Takeaways

The market in Q1 2026 continued to record steady demand alongside gradually loosening occupancy conditions. Net absorption totaled 552,000 sq. ft., up 8.4% year‑over‑year but down 49.5% from Q4 2025, reflecting a moderation in tenant expansion activity. Vacancy declined 20 basis points quarter‑over‑quarter to 4.4%, though it remained 30 basis points higher than one year earlier, while availability increased to 7.5%, rising 40 basis points over the quarter and 90 basis points year‑over‑year.

Rents and construction metrics continued to trend higher despite slower quarterly deliveries. Average asking rents increased 2.0% quarter‑over‑quarter and 6.0% year‑over‑year, with pricing now 31.5% above Q1 2023 levels. The construction pipeline expanded to 8.8 million sq. ft., rising 15.4% quarter‑over‑quarter and 11.3% year‑over‑year, even as deliveries slowed to 144,000 sq. ft., well below the 1.1 million sq. ft. delivered in Q4 2025 and 265,000 sq. ft. in Q1 2025.