Nashville Office Vacancy Dips to 16.6% in Q1 Amid Tech Influx

Nashville's office market posted a vacancy rate of 16.6% in Q1 2026, down 11 basis points from the prior quarter and 40 basis points from its Q2 2025 peak, according to Cushman & Wakefield. This improvement came with 57,195 square feet of positive net absorption and no new project deliveries for the third straight quarter, following 1.1 million square feet of vacancies from 2025 deliveries and move-outs at One Franklin Park. CBRE reported a slightly higher vacancy of 18.2%, with 128,000 square feet absorbed— a 275,000 square foot jump from Q4 2025—and asking rents climbing to $38.24 per square foot, up 19.4% since Q1 2023.

Demand surged as tenants signed 601,013 square feet of new leases, a 45.4% increase quarter-over-quarter and 18% year-over-year, per Cushman & Wakefield. Tech firms led the charge, including Glean Technologies' 13,185-square-foot move-in at the Bowtruss Building and RGN Nashville's 14,461 square feet at St. Cloud Corner in the Central Business District. Hybrid work models have stabilized space needs, boosting flight-to-quality in Class A properties while conversions reduce overall inventory.

Middle Tennessee's market outperforms national trends, where U.S. office vacancy stabilized at 18.6% per CBRE, with prime spaces tightening to 12.7%. Asking rents averaged $37.95 per square foot gross, up 1.1% year-over-year despite a slight quarterly dip from absorption of premium inventory. Experts forecast further vacancy declines as 2025 leases commence and modest office employment growth supports high-quality assets through 2027.