{"id":1004773353,"date":"2025-11-21T00:02:19","date_gmt":"2025-11-21T08:02:19","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004773353"},"modified":"2025-11-26T03:06:20","modified_gmt":"2025-11-26T11:06:20","slug":"weak-investment-strong-coworking-gains-animate-nashville","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/weak-investment-strong-coworking-gains-animate-nashville\/","title":{"rendered":"Amid Weak Investment, Strong Coworking Gains Animate Nashville"},"content":{"rendered":"
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\"Exterior<\/a>
Fifth Third Center is a 31-story, 490,281-square-foot office tower in downtown Nashville. Image courtesy of Yardi Research Data<\/em><\/figcaption><\/figure><\/div>\n\n\n

The office sector of Nashville showed uneven performance across key metrics, mirroring the lasting changes the sector still faces, Yardi Matrix data shows.<\/p>\n\n\n\n

Construction activity stayed muted while office investment pace did not pick up, with the metro placing on the last spots for both metrics among its peers.<\/p>\n\n\n\n

However, office assets traded at comparatively affordable prices while Nashville\u2019s office vacancy rate was among the lowest ones in the country. Another positive aspect is the coworking sector in the metro, that expanded notably compared to last year, signaling ongoing demand and resilience.<\/p>\n\n\n\n

Nashville sales slower, prices stay low<\/h2>\n\n\n\n

As of August, investors sold nine properties totaling 1.4 million square feet in Nashville, generating $168 million. The amount represented a 17.7 percent year-over-year drop in office investment volume<\/a>, with the metro ranking in last place in comparison with its competitors. For context, Dallas led with nearly $1.5 billion in deals, followed by San Diego ($1 billion) and Houston ($915 million).<\/p>\n\n\n\n

One of the largest office sales included Dreamscape Cos.\u2019 $55.3 million acquisition of Fifth Third Center, a high-rise in downtown Nashville. The 490,281-square-foot tower was sold by Perform Properties, a Blackstone-owned entity. The 31-story traded at a notable discount when compared to the previous time it changed ownership: back in 2019, when the Blackstone entity paid $144.8 million for it.<\/p>\n\n\n

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\"Exterior<\/a>
A private entity picked up the office building at 308 Mallory Station Road in Franklin, Tenn. Image courtesy of Yardi Research Data<\/em><\/figcaption><\/figure><\/div>\n\n\n

The second-largest sale in the metro was the $22.5 million acquisition involving 308 Mallory Station Road in Franklin, Tenn. A private entity bought the 92,530-square-foot building from Shop Fix Academy, while also securing a $21 million acquisition loan from Fourth Capital Bank.<\/p>\n\n\n\n

Meanwhile, Nashville office space<\/a> changed hands at an average sale price of $135 per square foot at the end of August\u2014below the national average of $190 per square foot and placing the metro among the most affordable markets in the nation.<\/p>\n\n\n\n

Among similar markets, Nashville\u2019s office prices outperformed only Houston\u2019s, where assets sold at $97 per square foot. In contrast, San Diego led with $332 per square foot and Dallas followed, with $240 per square foot.<\/p>\n\n\n\n

Nashville keeps low vacancy<\/h2>\n\n\n\n

Nashville\u2019s office vacancy rate clocked in at 17.9 percent as of August\u2014below the national rate of 18.7 percent and marking a 240-basis-point 12-month change.  The metro rate\u2019s was among the lower ones when compared to similar markets, a positive feature as the sector is grappling with heightened values.<\/p>\n\n\n\n

Lower rates were registered in Tampa (15.1 percent), Phoenix (17.2 percent) and Orlando (17.8 percent), while Austin (26.5 percent) continued to post the highest rate in the country.<\/p>\n\n\n\n

Meanwhile, the metro\u2019s listing rates stood at $30.65 per square foot\u2014below the national average of $32.63 per square foot and continuing to place Nashville among the most affordable metros in the nation.<\/p>\n\n\n\n

On the other hand, pricier markets included Austin ($46.04 per square foot) and San Diego ($45.23 per square foot), while Nashville average rents outperformed those of Houston ($27.62 per square foot), Orlando ($27.82 per square foot), Tampa ($29.68 per square foot) and Phoenix ($29.28 per square foot).<\/p>\n\n\n\n