Demand for Class A office space in the Nashville market remained strong through the third quarter, with only 25,000 square feet available within two Class A buildings opened during the past 12 months, according to a report from the Nashville office of Colliers International.
With direct vacancy down to 4.2 percent at the close of the third quarter, Nashville’s office market needs construction to keep pace with the leasing momentum for office space, according to the report.
Relatedly, year-to-date net absorption is positive 1.3 million square feet, equating to 106 percent of 2014's total absorption. Nashville is expected to close out 2015 with the highest occupancy gain since 2008.
The report notes that according to Colliers Global Research, Nashville’s direct vacancy rate of 5.8 percent during the year’s second quarter was lower than that of Toronto (6.1 percent), San Francisco (6.3 percent), Montreal (6.6 percent) and San Jose (7.2 percent).
Of note, and for the Nashville market, Class A office space average $24.68 per foot for the quarter. For downtown Class A space, the figure was $26.42, and $36-$38 for downtown Class A new construction. In contrast, for the Nashville market, suburban Class A office space averaged $24.31 per foot for the quarter and $28-$34 for suburban Class A new construction.
Read the full report here.
Capitol View in North Gulch site sees activity
Erosion barriers are in place at the Capitol View site on which Northwestern and Boyle Nashville are eying a mixed-use project.
The team is targeting a year's end construction start on a $90 million, six-story building (pictured) to be located at the northeast corner of the intersection of 11th Avenue North and Charlotte Avenue in the North Gulch.
Project officials could not be reached for comment.
Demo underway at Midtown site planned for tower
Full-scale demolition is underway on the Midtown site for which Lennar is targeting a mixed-used 19-story tower to be called M Residences.
Read more about the project here.
Goodyear building razing looms; hotel projects might follow
The SoBro building last home to Goodyear is having remediation work done as Fillmore Capital Group preps to raze the structure to make way for a planned Cambria Suites hotel project.
Read more here.
Core targets start for Five Points-area project
Nashville-based Core Development is targeting a January start on a residential project slated for a site located near Five Points in East Nashville, Nashville Business Journal reports.
The Nashville-based developer is eyeing 17 townhomes and six flats for the site, which it acquired from LIV Development and is located on West Eastland Avenue about one block west of Gallatin Road.
Read more here.
Waters to step down at Turnberry
Veteran hotel industry executive Ray Waters has resigned from Turnberry Associates, the Aventura, Florida-based developer eyeing a 35-story JW Marriott for SoBro, Nashville Business Journal reports.
Waters, who most recently served as president of Turnberry’s hospitality division and is recognized locally for his work with Hilton Nashville Downtown, told NBJ he is weighing various options.
Read more here.
Beaman sells Antioch land for $5.5M
Century Farms LLC, a partnership affiliated with Nashville-based Oldacre McDonald, has acquired about 132 acres of Antioch land for $5.54 million, The Tennessean reports.
Nashville automotive dealer Lee A. Beaman was the seller.
Century Farms is eyeing a massive mixed-use project on the site.
An event production company headquartered in Charlotte has set up a local outpost on Airpark Center Drive. The local office of JHE Production Group will be run by Bert Hensley, who had spent more than a decade at Gary Musick Productions. Check out more details here.
Deloitte is targeting mixed-use building Gulch Crossing for its Nashville offices, Nashville Business Journal reports.
According to NBJ, which cites multiple sources, Deloitte is finalizing negotiations to lease space in the 205,000-square-foot building, which opened in July and is about 70 percent leased.
Of all accounting firms based in Nashville or not, Deloitte has the largest local presence. The company operates in offices both in Hermitage (at which a large IT team is based) and downtown.
Read more here.
The local office of international supply chain company XPO Logistics is eyeing a small office space in downtown's Bank of America Plaza office tower.
According to a Metro Codes Department document, the company is having rehabbed about 3,800 square feet of space on the building’s 10th floor. Nashville-based Commercial Industrial Construction is handling the work, with the permit valued at $85,000.
Bank of America Plaza has an address of 414 Union St.
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