Nashville, TN Industrial Market Report Q3 2026

Nashville industrial net absorption turned negative in Q3 2026 at -144,000 square feet (SF), and vacancy loosened 137 basis points to 7.3% as trailing-12-month deliveries climbed 120% to 7.65M SF. Demand is still positive over the longer run, with trailing-12-month absorption of 2.94M SF versus 956K SF a year earlier, and asking rent of $12.45/SF is up 3.3% year over year, within 1% of the Q2 2026 peak. This Matthews™ Nashville, TN Industrial Market Report Q3 2026 covers demand, supply, pricing, and investment sales across 16 submarkets so owners, investors, and tenants can see where Nashville industrial real estate is tightest and where new supply is concentrated.

Key Findings

• Q3 net absorption was -144K SF versus +654K SF a year earlier, while trailing-12-month absorption rose to 2.94M SF from 956K SF.
• Vacancy is 7.3%, 137 bps looser than Q3 2025, with Cannon County the tightest submarket at 0.0% and Trousdale County the loosest at 20.8%.
• Asking rent of $12.45/SF is up 3.3% year over year, and Wilson County leads rent growth at +7.1%.
• Q3 deliveries totaled 671K SF, 65% above last year’s 407K SF. Trailing-12-month deliveries of 7.65M SF are up 120%.
• Investors recorded $1.5B in Nashville industrial sales over the trailing 12 months (-18%), with pricing at $162/SF.

Nashville Industrial Supply & Demand Dynamics

What is happening with industrial demand in Nashville?

Nashville posted net absorption of -144K SF in Q3 2026, against 654K SF in the same quarter last year. Over the trailing 12 months, absorption of 2.94M SF is up from 956K SF. Vacancy of 7.3% is 137 basis points looser than Q3 2025, and asking rent of $12.45/SF is within 1% of the Q2 2026 peak of $12.50/SF.

How much new industrial supply is under construction in Nashville?

Nashville delivered 671K SF in Q3 and 7.65M SF over the trailing 12 months, up 120% from the prior 12-month period. Space under construction equals 3.8% of inventory and is concentrated in Wilson County, where it represents 8.1% of existing stock. Annual deliveries peaked at 11.69M SF in 2021. The 11.50M SF pipeline equals about 15 and a half quarters of absorption at the trailing pace, so tenants should expect continued options.

Nashville Industrial Investment Market

What are Nashville industrial cap rates and pricing?

Nashville industrial cap rates average 6.51%, down for seven straight quarters and 102 basis points below the Q1 2015 high of 7.54%. Pricing sits at $162/SF, higher for 16 consecutive years. Sales volume reached $1.5B over the trailing 12 months, down 18% from the prior period, with $444M closing in Q3. Compressing cap rates and rising pricing per SF continue to support values even as volume cools.

Nashville Industrial Submarket Highlights

Vacancy is lowest in Cannon, Macon, and Smith counties (0.0% each), followed by Cheatham County (0.5%) and Dickson County (1.6%). It is highest in Trousdale County (20.8%), Wilson County (10.1%), West (9.7%), and Hickman County (9.5%). Rent growth is led by Wilson County (+7.1%), Robertson County (+6.2%), Dickson County (+4.7%), and Cannon County (+4.2%), while Hickman County (-2.2%), Macon County (-0.9%), and Cheatham County (-0.3%) posted declines.

Nashville Industrial Market by the Numbers

• Vacancy: 7.3%
• Average asking rent: $12.45/SF (+3.3% year over year)
• Q3 2026 net absorption: -144K SF
• Trailing-12-month deliveries: 7.65M SF
• Under construction: 3.8% of inventory (11.50M SF)
• Trailing-12-month sales volume: $1.5B (-18%)
• Average cap rate: 6.51%
• Price per SF: $162

Nashville Industrial Market FAQs

What is the Nashville industrial vacancy rate in Q3 2026?

The Nashville industrial vacancy rate is 7.3% in Q3 2026, up 137 basis points from Q3 2025.

What is the average industrial rent in Nashville?

Average asking rent in Nashville is $12.45/SF in Q3 2026, up 3.3% year over year.

Which Nashville submarket has the lowest industrial vacancy?

Cannon, Macon, and Smith counties each report 0.0% industrial vacancy, the lowest in the metro.

What is the average industrial cap rate in Nashville?

The average Nashville industrial cap rate is 6.51% in Q3 2026, down for seven consecutive quarters.

Previous Nashville Industrial Market Reports

Compare this quarter with the prior one: read the Nashville, TN Industrial Market Report Q2 2026.

The bottom line for owners: rents and pricing continue to rise, but negative Q3 absorption and an 11.50M SF pipeline mean tenants have leverage, particularly in Wilson and Trousdale counties. Download the full report above for submarket charts and detail, or contact Hutt Cooke, Managing Director in Nashville, to discuss your property.

Sources: Matthews™ Research, CoStar Group, Inc., RCA, and BLS. Information is for reference only. Sources deemed reliable but not verified.