Nashville's office vacancy fell to within the 5.5 percent to 6 percent range at mid-year, a record-low rate in tracking by two local real estate firms that reflects supply of space not keeping up with demand.
That helped to push overall average rental rates up at least 5 percent from year's end 2015 to an all-time high of nearly $23 a square foot, according to Cushman & Wakefield Nashville and CBRE Research.
"The big story is continued job growth," said Rob Lowe, a senior managing director with Cushman & Wakefield Nashville. "It's driving the high occupancy-low vacancy rate. That, in turn, is driving rental rates, which in turn will result in new construction."
Lowe considers the $3.65 billion of overall building permits issued for Metro Nashville government's recently ended fiscal year a good omen for employment in Nashville's real estate-related industries. "For the next 18 to 20 months, there will be a lot of activity," he said.
In the second quarter, health care, creative industries and technology continued to lead industries occupying space, according to CBRE Research.
New office leases signed included ridesharing service Lyft adding 19,428 square feet of space at 150 Second Ave. N. to expand the footprint of its customer support operations in downtown Nashville.
Rob Lowe (Photo: Submitted)
Meanwhile, hospital chain HCA's Parallon Business Solutions subsidiary leased 38,000 square feet of space at 621 Mainstream Drive in MetroCenter. And in Cool Springs, French energy management and automation company Schneider ...