According to statistics gathered from multiple organizations operating within the Nashville real estate industry, no significant changes have occurred in the retail market during the third quarter. Studies conducted by CoStar Group indicate that the vacancy rate went from eight percent of the last quarter to 8.1 percent of the third, reflecting a minimal 0.1 per cent improvement.
Research also shows a net negative absorption of 8,143 square feet, while vacant subleased space decreased by 1,723 square feet. Meanwhile, minor changes were noted in quoted rental rates, which increased to $13.59 per square foot from the $13.41 per square foot witnessed during the previous quarter.
While there are obviously numerous newer deals which have been made during this quarter, as well as other retailers who’ve decided to bail, the figures cross each other out.
The largest tenants who’ve chosen to abandon ship this year include Sears, which formerly occupied 168,344 square feet at Hickory Hollow Mall; as well as Macy’s (tenant at the same mall as Sears) which let go of 172,404 square feet of retail space.
Despite the massive losses, various lease deals were formed as well, which includes the 24,287 square foot Golfsmith at 330 Franklin Rd., Big Lots at Summer Place, which measured 29,000 square feet, and more.
This quarter saw the erection of three retail buildings – with a combined total of 113,200 square feet – come down the pipeline. Also, 370,431 square feet are currently in the process of construction at the end of the quarter. Throughout the duration of all four quarters, approximately 365,292 square feet of retail space hit the Nashville real estate market.
Amongst the several developments which added more retail space to the Nashville market, 519 New Paul Rd. (80,000 square feet), Sam's Club at 301 Indian Lake Blvd. (136,000 square feet) are amongst the biggest.
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