The Nashville Industrial market ended the quarter with a decreased vacancy rate, an upward trending average asking rate, ample deliveries throughout the quarter, and more than 1.5 million sq. ft. of positive absorption.
Nashville recorded a total of 1,581,466 sq. ft. of positive net absorption in Q2 2020. The Elm Hill Pike/I-40 submarket was the most active in the quarter, totaling over 1 million sq. ft. of absorption.
Nashville ended the quarter with an averaging asking rate of $5.21 per sq. ft. triple net, increasing 26% since Q1 2015.
In Q2, the market’s total vacancy rate decreased 50 basis points from Q1 2020 to 6.9%. During the quarter, warehouse and distribution vacancy decreased 80 basis points from the previous quarter to 7.7%. R&D/Flex space increased to a rate of 11.0% and the manufacturing vacancy remained steady at 4.9%.