From Q2 2023 through Q2 2026, Nashville’s office market continued to show signs of stabilization, with vacancy moving lower from 18.8% to 17.5% while average direct asking rents remained meaningfully above earlier-cycle levels, increasing from $32.17 to $37.16 per sq. ft. Although conditions have improved, demand remains selective, with leasing and absorption concentrated in higher-quality assets and core submarkets rather than evenly distributed across the metro.
In Q2 2026, net absorption totaled 351,000 sq. ft., bringing year-to-date absorption to 476,000 sq. ft. Vacancy declined to 17.5%, while overall availability tightened to 23.5%. Average direct asking rents softened to $37.16 per sq. ft., reflecting some near-term pricing adjustment even as occupancy fundamentals improved. Construction activity remained limited, with 295,000 sq. ft. underway and no new office deliveries during the quarter.