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June 2020

Nashville Industrial Real Estate Summary: Leases, Sales, and Construction Stats

Ashley Capital puts together the latest statistics for leases, sales, and construction in Nashville’s industrial real estate sector. Every quarter the most prominent deals are listed in order to illustrate the current state of the market.

It goes without saying that the most recent quarter will be affected by the current pandemic; however, the sentiment in Nashville is quite optimistic given the circumstances.

The Nashville industrial market is somewhat unique in that in early March, before the quarantine due to Covid, devastating tornados ravaged the industrial market where in one night over 4 million square feet of product was lost or damaged beyond occupancy. This caused several tenants to snatch up available vacant spaces in an effort to stay operational.

In a market that was already supply-constrained, this caused our vacancy rate to dip from 3.5% vacant at the year’s end down to 2.5% at the end of first quarter 2020. It is expected this vacancy rate will fall further. So far, due to Nashville being a very diversified industrial market, there have been no significant negative ramifications due to Covid.

In fact, e-commerce related requirements are one of the industry sectors causing a decrease in vacancy as everyone weathered through the quarantine by ordering items online and having them delivered to their homes. The supply-demand imbalance is causing rental rates to continue to rise and landlord concessions to remain low.

– Doug Howard, Managing Director @ Ashley Capital

Nashville Industrial Real Estate Statistics 2020

Top Nashville Industrial Real Estate Lease Statistics

12 Month Deliveries in Square Feet: 4.6 million
12 Month Net Absorption in Square Feet: 3.4 million
Vacancy Rate: 3.5%
12 Month Rent Growth Rate: 7.7%

Top Milwaukee Industrial Leases (Past 12 Months)

1) Property: 1000 Darrell Waltrip Dr
Submarket:
Wilson County
Leased SF:
1,015,040
Quarter:
Q2 2019
Tenant: GEODIS
Tenant Rep: ProVenture, LLC
Leasing Rep:
ProVenture, LLC

2) Property: 437 New Sanford Rd
Submarket: 
Southeast
Leased SF:
770,000
Quarter:
Q4 2019
Tenant: Technicolor USA, Inc
Tenant Rep:
NorthStar Real Estate

3) Property: 578 Aldi Blvd
Submarket:
Wilson County
Leased SF:
550,000
Quarter:
Q3 2019
Tenant: Geodis

4) Property: 400 New Sanford Rd
Submarket:
Southeast
Leased SF:
518,667
Quarter:
Q4 2019
Tenant:
Essex Technology Group

5) Property: 3818 Logistics Way
Submarket: Southeast
Leased SF:
517,500
Quarter:
Q2 2013
Tenant:
Amazon
Tenant Rep: NorthStar Real Estate
Leasing Rep: Cushman & Wakefield

Nashville Industrial Real Estate Sales 2020

Top Nashville Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 223
Average Cap Rate:
6.3%
Average Price/ SF: 
$70
Average Vacancy at Sale: 9.5%

Top Nashville Industrial Property Sales

1) Property: Rooms To Go (125 Logistics Dr)
*Rating:
5
Year Built: 
2019
Building SF:
902,385
Vacancy:
100%
Price (PSF): 
$55,000,000 ($61)
Cap Rate: 
Not Listed

2) Property: Building 2 (12008 Eastgate Blvd)
*Rating: 5
Year Built: 2013
Building SF: 706,500
Vacancy: 
0%
Price (PSF): $52,051,359 ($74)
Cap Rate: Not Listed

3) Property: Skyhawk Business Park (570 Knight Valley Dr)
*Rating:
4
Year Built: 
2018
Building SF:
450,000
Vacancy: 
0%
Price (PSF): 
$44,200,000 ($98)
Cap Rate: 
Not Listed

4) Property: Elam Farms 2 (3209 – 3263 Elam Way)
*Rating: 5
Year Built: 2009
Building SF: 363,500
Vacancy: 
0%
Price (PSF): $40,614,558 ($112)
Cap Rate: Not Listed

5) Property: Interchange Center I (3818 Logistics Way)
*Rating:
4
Year Built: 
2018
Building SF:
517,500
Vacancy: 
0%
Price (PSF): 
$40,500,000
Cap Rate: 
4.9%

*Rating is 1-5, 5 being the best

Nashville Industrial Real Estate Construction 2020

Nashville Industrial Construction Projects Statistics

Properties Currently Under Construction: 67
Total Size in Square Feet:
8,931,008
Percent of Inventory:
4.1%
Preleased: 46.3%

Top Nashville Industrial Projects Under Construction

1) Property: Building 3 (1000 Darrell Waltrip Dr)
Rating*:
4
Building SF:
1,405,920
Stories: 
1
Completion:
Q2 2020
Developer/ Owner:
Panattoni Development Company

2) Property: Beckwith Farms Building 9 (41 Athlete’s Way)
Rating*:
4
Building SF:
527,100
Stories:
1
Completion:
Q3 2020
Developer/ Owner:
Panattoni Development Company

3) Property: 0 Bill Jones Dr
Rating*:
3
Building SF:
500,000
Stories:
Not Listed
Completion:
Q3 2020
Developer/ Owner:
Not Listed

4) Property: Beckwith Farms Building 8 (41 Athlete’s Way)
Rating*:
4
Building SF:
458,136
Stories:
1
Completion:
Q3 2020
Developer/ Owner:
Panattoni Development Company

5) Property: Building 4 (1000 Darrell Waltrip Dr)
Rating*:
4
Building SF:
443,136
Stories:
1
Completion:
Q3 2020
Developer/ Owner:
Panattoni Development Company

*Rating is 1-5, 5 being the best

Data Sources: Ashley Capital & CoStar