The vacancy rate in Cool Springs — and the Nashville market at large — is continuing to rise as the coronavirus pandemic continues.
The Cool Springs vacancy rate has risen from about 10.4% at the end of 2019 to more than 15.4% by the end of the third quarter, according to a recent real estate report from Avison Young. The office vacancy rate in Brentwood, mostly covering Maryland Farms and Franklin Road, jumped from 10.2% to 12.1%.
The vacancy rate for the entire Nashville area has risen from about 8.4% to 12.5% this year. During the third quarter, Cool Springs had a higher vacancy rate than any other submarket.
The pandemic is partly to blame for the rise in vacancy rates, but it’s also partially due to new construction.
Developers have delivered more than 175,000 square feet of office space in Cool Springs so far this year. Businesses have only signed leases for a net gain of 39,000 square feet in 2020. Developers have built 120,000 square feet of office space in Brentwood so far this year, but companies have absorbed 122,000 square feet.
Despite the rising vacancy numbers, developers are still building. More than 250,000 square feet of office space is under construction in Cool Springs and more than 110,000 square feet is under construction in Brentwood.
The amount of office space available for subleases has also skyrocketed during the pandemic. According to the Avison Young report, the amount of subleased office space increased by more than 300% over the last year as the pandemic has changed the way companies use office space. That’s more than any other market measured in the report.
The report doesn’t break down subleased space by submarket, but notes that large pockets are in suburban areas, such as Cool Springs and Brentwood.
Despite these changes, the price to lease office space in Williamson County hasn’t changed much since the beginning of the year. Rates for class A space in Cool Springs and Brentwood have risen slightly to about $31 and $32 respectively.