Nashville Office Figures Report Q3 2026

In Q3 2026, the Nashville office market recorded stable occupancy, moderating leasing volume, and a significantly reduced development pipeline. Net absorption totaled 152,000 sq. ft., down from 346,000 sq. ft. in Q2 2026, keeping the total vacancy rate steady at 17.7%. Total availability fell 30 bps quarter-over-quarter to 23.3%. Leasing activity reached 850,000 sq. ft., trailing the 1.46 million sq. ft. recorded in Q2 2026. The average asking rent increased to $37.30 per sq. ft. Space under construction declined to just 60,000 sq. ft. following 235,000 sq. ft. of deliveries during the quarter.

Over the past three years, the market has absorbed new supply while posting incremental occupancy gains. Total vacancy declined from 19.1% in Q3 2023 to 17.7% in Q3 2026, and availability eased from 24.5% to 23.3%. Net absorption remained positive in most quarters, supporting long-term average asking rent growth from $33.56 per sq. ft. in Q3 2023.

Macroeconomic conditions continue to support occupier fundamentals, with the U.S. economy positioned to grow by over 2% in 2026 amid a stable labor market. However, elevated interest rates and 5% Treasury yields continue to impact investment activity, with near-term relief dependent on shifting inflation data and geopolitical de-escalation.