Our office market chugs ahead

Local companies have knocked a full point off the Nashville area's office vacancy rate since the end of 2011, according to figures from Cassidy Turley. The overall vacancy rate finished the third quarter at 11.5 percent, the brokerage said, although overall lease rates have been dragged down in 2012 by a 6 percent drop in the price of Class B space. Click here for the full number set, which shows that our top three markets so far this year in terms of absorption have been the Central Business District, Cool Springs and the Airport North area.

Vacancy [for Class A and B space] is falling and the market hit a major milestone of single digits this quarter (9.9%) – a number we have not seen in 10 years. Class A vacancy hit a market low of 6.3% this quarter validating the need for construction. Year to date absorption posted positive 757,494 SF already surpassing the space absorbed last year.