Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}
Industrial-Markets-to-Watch-Nashville-hero-2352x730 Industrial-Markets-to-Watch-Nashville-hero-750X480

Nashville Named One of Five Emerging Industrial Markets to Watch

Zander El-Hindi • 7/8/2022

While major industrial and logistics markets capture most of the headlines, industrial occupiers and investors know that dozens of secondary markets are essential to supply chains in the U.S.  

Of the 81 industrial markets Cushman & Wakefield tracks, the firm selected five emerging industrial real estate markets outside of primary markets that are markets to watch are based on key metrics from 2019 through 2021, including net absorption, new tenant demand, vacancy, rent growth, construction pipeline and deliveries.  

Included in the five is Nashville. A central location in the Southeast U.S. — intersected by three major interstates — puts 12 million consumers within a two-and-a-half-hour drive of Music City. That geographical advantage bodes well for logistics and e-commerce users who need easy customer access.  

Additionally, some major corporate announcements and relocations to Nashville, such as Alliance Bernstein, Amazon and Oracle, have had a trickle-down effect on the industrial market. More workers have migrated to the area, driving more residential development, which in turn has spurred demand for construction materials and supplies, along with more consumer products. Of course, these goods flow through logistics real estate, which has helped drive demand for warehouse space to new heights. 

Nashville’s industrial leasing and absorption activity has been dominated by e-commerce and third-party logistics occupiers. From 2019 to 2021, more than 19.0 million square feet (msf) of industrial product was absorbed, 7.0 msf of which occurred in 2021 alone. Since 2020, Amazon itself accounted for 52% of total absorption as the e-commerce giant expanded rapidly within the market.  

Broader tenant demand continued to yield robust totals with 9.5 msf leased in 2021, the majority of which was concentrated in Eastern and Southeastern submarkets. Significant deals leading that activity were inked by Wal-Mart, Chewy Inc., FedEx and Southerland Sleep. Elevated demand coupled with tightening conditions spurred developers to build almost 20 msf of new industrial product from 2019-2021, responding to the need for additional Class A warehouse space. 

As of Q1 2022, Nashville has a record 14 msf of product under development, 73.6% of which should deliver by year-end 2022. Of these expected deliveries, 8.6 msf is being developed on a speculative basis. Finally, with historically tight vacancy (2.9% at Q1 2022), asking rents swelled by 28% from Q1 2021 to Q1 2022 and should trend higher as strong demand and market fundamentals persist. 

The other four emerging industrial markets included:

For more, check out our “Five Industrial Markets to Watch.” 

Insights in your Inbox
Subscribe to the latest local market research, insights & analysis from Cushman & Wakefield across the U.S.

Related Insights

Article • Technology


The Seattle market has been established tech market for decades. Seattle scores very high in several tech-related categories: number of graduates, job concentration, labor pool size, talent migration, et al.
Brian Cagayat • 8/16/2022
Five Fast Facts: Bright Insight Legal Sector Trends
Article • Legal

Five Fast Facts: Bright Insight Legal Sector Trends

Read our Five Fast Facts to learn more about the latest legal sector trends.
Sherry Cushman • 8/11/2022
Tech Cities bay Area
Article • Technology

Global Tech Cities: Bay Area

The region surrounding the San Francisco Bay remains the epicenter of the technology industry.
Robert Sammons • 8/8/2022

Ready to talk?

Our professionals are ready to provide further details on this and many other topics.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All