Nashville is aided by standout population growth, which continues to outpace national trends. The Nashville metro has grown by 6.4% since 2020, adding around 136,000 new residents and surpassing a population of 2.1 million. The increase in residents has boosted Nashville’s position as a consumer and logistics hub, with the addition of several new employers. New move-ins include Amazon, Oracle, Nissan, Bridgestone Americas, and TikTok, aiding growth in key industries like healthcare, technology, and manufacturing.

 

Nashville Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 2.9%
• Current Population: 2,176,934
• Households: 896,575
• Median Household Income: $88,646

 

Population, Labor, and Income Growth

Source: CoStar Group, Inc.

 

Key Findings

• Small-bay buildings accounted for over 80% of leasing activity in Q3 2025, demonstrating continued demand for smaller industrial spaces, despite elevated rents.
• The Wilson County and Southeast Nashville submarkets are top-performers for developments, accounting for more than 80% of new industrial space delivered since 2020.
• International migration is one of the largest contributors to the metro’s growing population, with moves from international residents accounting for 38% of new citizens in 2024.

 

Market Performance

Nashville’s industrial market showed renewed momentum in the third quarter, recording 705,325 square feet absorbed and a 6.0% vacancy rate, signaling a rebound despite annual totals still lagging historical norms. Leasing has been led by newer and small-bay buildings, which continue to dominate activity. These facilities accounted for over half of all direct leases and more than 80% of transactions in facilities under 150,000 square feet.

 

Although asking rents average $11.90 per SF, among the Southeast’s highest, rent growth has cooled to 3.5% annually. Buildings up to 100,000 square feet note the highest rents at $14 per square foot, while buildings in the 100,000- to 200,000-square-foot range record rents at $11 per square foot.

 

Nashville Industrial Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Nashville Construction

Construction across Nashville remains highly active, with 9.5 million square feet currently underway, reflecting strong demand for modern logistics facilities. Developers continue to build despite elevated costs driven by the region’s challenging terrain. The push for higher-quality, high-ceiling buildings has fueled a flight-to-quality as occupiers favor new, efficient spaces. Major projects include Brennan Investment Group’s 350,000-square-foot industrial park in La Vergne, set for completion by mid-2026, and Hamilton Development’s 200-acre Clarksville park, which will deliver 2.1 million SF. While large-scale construction remains robust, small-bay facilities under 50,000 SF remain scarce, keeping availability tight despite the overall construction boom.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sales

Nashville’s industrial investments have been high, with annual deal volume totaling $1.4 billion and third quarter sales at $486 million. Investor interest has remained active, supported by Nashville’s population growth and its convenient location to other metros across the country. Pricing remains resilient with a current sale price of $150 per square foot, with premium infill properties recording higher rates. Major deals, including Stonelake Capital Partners’ $742,000-square-foot portfolio sale and trades like the Doug Jeffords Company warehouse, reflect continued institutional confidence and strong demand for modern logistics assets.

 

Sales Volume

Source: CoStar Group, Inc.