Nashville, TN Retail Market Report Q3 2026
Nashville retail absorption rebounded to 448,000 square feet (SF) in Q3 2026, a swing from negative 63K SF a year earlier, and asking rent reached a record $31.54/SF, up 5.6% year over year. Vacancy is 3.3%, 8 basis points tighter than Q3 2025, though trailing-12-month deliveries rose 32% to 1.04M SF. Pricing hit a record $295/SF and sales volume rose 27% to $1.4B. This Matthews™ Nashville, TN Retail Market Report Q3 2026 covers demand, supply, pricing, and investment sales across 16 submarkets so owners, investors, and retailers can see where Nashville retail real estate is tightest.
Key Findings
- Demand rebounded: Nashville absorbed 448K SF in Q3 2026 versus -63K SF a year earlier, and 936K SF over the trailing 12 months versus 184K SF.
- Vacancy is 3.3%, with Cannon County the tightest submarket at 0.0% and North Nashville the loosest at 8.7%.
- Asking rent of $31.54/SF is a record, and Green Hills-Belle Meade leads rent growth at +7.7%.
- Q3 deliveries totaled 266K SF, 48% above last year’s 180K SF. Trailing-12-month deliveries of 1.04M SF are up 32%.
- Investors recorded $1.4B in Nashville retail sales over the trailing 12 months (+27%), with pricing at a record $295/SF.
Nashville Retail Supply & Demand Dynamics
How strong is retail demand in Nashville?
Nashville absorbed 448K SF in Q3 2026, against -63K SF in the same quarter last year. Trailing-12-month absorption of 936K SF is up from 184K SF a year earlier. Vacancy of 3.3% is 8 basis points tighter than Q3 2025, and asking rent has risen 5.6% year over year to $31.54/SF.
How much new retail space is being built in Nashville?
Nashville delivered 266K SF in Q3 and 1.04M SF over the trailing 12 months, up 32% from the prior 12-month period. Space under construction equals 0.7% of inventory and is concentrated in Rutherford County, where it represents 2.7% of existing stock. Annual deliveries peaked at 3.96M SF in 2007. The 863K SF pipeline equals about three and a half quarters of absorption at the trailing pace.
Nashville Retail Investment Market
What are Nashville retail cap rates and pricing?
Nashville retail cap rates average 6.58%, down for three straight quarters and 78 basis points below the Q1 2015 high of 7.36%. Pricing sits at a record $295/SF, higher for 16 consecutive years. Sales volume reached $1.4B over the trailing 12 months, up 27% from the prior period, with $380M closing in Q3. Compressing cap rates and record pricing give owners of stabilized retail a strong case for a sale.
Nashville Retail Submarket Highlights
Vacancy is lowest in Cannon County (0.0%), Northeast/Outer Metro (0.8%), Mt Juliet-Lebanon (0.9%), Green Hills-Belle Meade (1.0%), and Robertson County (1.1%). It is highest in North Nashville (8.7%), Southeast Corridor (6.6%), and Vanderbilt-West End (5.0%). Rent growth is led by Green Hills-Belle Meade (+7.7%), Vanderbilt-West End (+6.6%), Brentwood/Franklin (+6.3%), and Downtown (+6.2%). Every submarket posted rent growth of at least 3.9%.
Nashville Retail Market by the Numbers
- Vacancy: 3.3%
- Average asking rent: $31.54/SF (+5.6% year over year)
- Q3 2026 net absorption: 448K SF
- Trailing-12-month deliveries: 1.04M SF
- Under construction: 0.7% of inventory (863K SF)
- Trailing-12-month sales volume: $1.4B (+27%)
- Average cap rate: 6.58%
- Price per SF: $295
Nashville Retail Market FAQs
What is the Nashville retail vacancy rate in Q3 2026?
The Nashville retail vacancy rate is 3.3% in Q3 2026, down 8 basis points from Q3 2025.
What is the average retail rent in Nashville?
Average asking rent in Nashville is $31.54/SF in Q3 2026, a record and 5.6% higher than a year ago.
Which Nashville submarket has the lowest retail vacancy?
Cannon County has the lowest retail vacancy at 0.0%, followed by Northeast/Outer Metro at 0.8%.
What is the average retail cap rate in Nashville?
The average Nashville retail cap rate is 6.58% in Q3 2026, down for three consecutive quarters.
Previous Nashville Retail Market Reports
Track how the market has moved quarter to quarter: read the Nashville, TN Retail Market Report Q1 2026 and the Nashville Retail Market Report Q2 2026.
The bottom line for owners: record rents, record pricing, and falling cap rates favor sellers of well-located retail, while a pipeline of only 0.7% of inventory limits new competition. 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.
