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Market Trend: Nashville's Retail Vacancy Increases to 7.2%

Net Absorption Positive 61,523 SF in the Quarter
July 26, 2012
The Nashville retail market did not experience much change in market conditions in the second quarter 2012.

The vacancy rate went from 7.1% in the previous quarter to 7.2% in the current quarter. Net absorption was positive 61,523 square feet, and vacant sublease space increased by 220,540 square feet.

Tenants moving into large blocks of space in 2012 include: Sam’s Club moving into 136,000 square feet at 301 Indian Lake Blvd; Saks Fifth Avenue moving into 27,567 square feet at 433 Opry Mills Dr; and Old Navy moving into 24,834 square feet at 433 Opry Mills Dr.

Quoted rental rates decreased from first quarter 2012 levels, ending at $13.37 per square foot per year.

A total of two retail buildings with 179,200 square feet of retail space were delivered to the market in the quarter, with 212,638 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national retail vacancy rate, which stayed at 6.9% over the previous quarter, with net absorption positive 2.85 million square feet in the second quarter.

The information in this news report is based on CoStar’s Second Quarter 2012 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

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