Commercial real estate market shows signs of improvement in Nashville
The first-quarter market report released recently by the Nashville office of CB Richard Ellis offers small bits of encouragement for the year ahead in commercial real estate, noting that both the area’s office and industrial sectors posted positive net absorption, meaning more people moved or expanded into new space versus those who moved out or downsized their current space.
According to CBRE, Nashville’s office sector was essentially flat, posting 22,855 square feet of black ink. Nashville-area office properties ended the quarter with overall vacancy of 14.5 percent. The industrial sector posted 400,000 square feet of black ink, ending the quarter with an 8.9 percent vacancy rate.
“Looking for good news, there are some businesses of significant size that are in the market,” Tom Frye, managing director of Nashville’s CBRE office, wrote in the report. “Our brokers, particularly in office space, are bullish and confident that several large transactions will occur this year. Further, though not beyond the inquiry stage, we have had in the industrial sector several requests for market data for sizeable blocks of space ... some of these coming from outside the (metropolitan statistical area).”
Though Frye said this is not a year when absorption will be easy to predict, he affirmed CBRE’s previous forecast that the industrial market will post 1.5 million square feet in black ink by year’s end.
In the office sector, vacancy remained the highest in the downtown submarket, with a 24.1 percent vacancy rate, followed by Airport South’s 22.3 percent. Vacancy in the West End/Belle Meade submarket remains the lowest in the area, at 5 percent, followed by MetroCenter’s 5.9 percent and Green Hills/Music Row’s 6.2 percent. The Cool Springs/Brentwood submarket ended the quarter with a 11.8 percent vacancy rate.
Average rental rates for office space are highest in the Green Hills submarket, at $21.66 per square foot, followed by Cool Springs’ $21.64 per square foot. Downtown’s average rental rate stood at $19.45 per square foot.
In the industrial sector, vacancy was highest in the Elm Hill Pike/Interstate 40 East submarket, at 16.6 percent. Vacancy was lowest in MetroCenter/Cockrill Bend, at 3.7 percent.
For a more detailed breakdown of the Nashville market, you can register at CB Richard Ellis' Web site.
According to CBRE, Nashville’s office sector was essentially flat, posting 22,855 square feet of black ink. Nashville-area office properties ended the quarter with overall vacancy of 14.5 percent. The industrial sector posted 400,000 square feet of black ink, ending the quarter with an 8.9 percent vacancy rate.
“Looking for good news, there are some businesses of significant size that are in the market,” Tom Frye, managing director of Nashville’s CBRE office, wrote in the report. “Our brokers, particularly in office space, are bullish and confident that several large transactions will occur this year. Further, though not beyond the inquiry stage, we have had in the industrial sector several requests for market data for sizeable blocks of space ... some of these coming from outside the (metropolitan statistical area).”
Though Frye said this is not a year when absorption will be easy to predict, he affirmed CBRE’s previous forecast that the industrial market will post 1.5 million square feet in black ink by year’s end.
In the office sector, vacancy remained the highest in the downtown submarket, with a 24.1 percent vacancy rate, followed by Airport South’s 22.3 percent. Vacancy in the West End/Belle Meade submarket remains the lowest in the area, at 5 percent, followed by MetroCenter’s 5.9 percent and Green Hills/Music Row’s 6.2 percent. The Cool Springs/Brentwood submarket ended the quarter with a 11.8 percent vacancy rate.
Average rental rates for office space are highest in the Green Hills submarket, at $21.66 per square foot, followed by Cool Springs’ $21.64 per square foot. Downtown’s average rental rate stood at $19.45 per square foot.
In the industrial sector, vacancy was highest in the Elm Hill Pike/Interstate 40 East submarket, at 16.6 percent. Vacancy was lowest in MetroCenter/Cockrill Bend, at 3.7 percent.
For a more detailed breakdown of the Nashville market, you can register at CB Richard Ellis' Web site.
Labels: commercial real estate, nashville business, nashville community, nashville market
posted by The Fine Living Group of Nashville at
7:54 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home