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YardDogs -
Here’s another edition of Market Monday! Today we’re taking a look at Nashville, TN.
In today’s email:
Market Overview: Nashville added about 31,500 residents in 2023, bringing the metro to over 2.15 million people. Unemployment sits near 3%, and industrial vacancy around 5%, reflecting tight supply and steady demand. Its location at the crossroads of I-24, I-40, and I-65 keeps it a key logistics and IOS hub.
The IOS Opportunity: Lease rates initiated between 2023 and 2025 average roughly $8,000 per month per acre. Lease rates initiated in 2025 rents are up about 50% from 2023 levels. The average price per acre in 2025 is approximately $1M; however depending on location/desirability price per acre can be $1.1M+ or or <$900K.
Market Fundamentals: Nashville’s industrial base remains strong, with vacancy near 5% and limited land in core areas. Infrastructure upgrades — including the I-24 SMART Corridor, I-65 widening, and new interchanges near La Vergne and Lebanon — are improving freight mobility and access. Surrounding counties like Rutherford and Wilson offer more flexible zoning and lower barriers to development.
IOS Landscape: IOS demand is driven by logistics fleets, service contractors, and construction users. Activity centers along the I-65 and I-24 corridors, especially in La Vergne and Murfreesboro, with growth extending into Mt. Juliet, Lebanon, and Spring Hill. As land tightens in Davidson County, these submarkets are capturing steady absorption and investor attention.
Local Brokers & Market Experts: Scroll to the bottom for a list of active IOS brokers, tenant reps, and investor contacts shaping the Nashville market.
MARKET OVERVIEW
Nashville
Nashville continues to experience meaningful population and economic momentum. The metro added roughly 31,500 residents in 2023, an average of 86 new people per day, bringing the total population to over 2.15 million as of 2024.1
The regional economy is diversified across trade, transportation, utilities, manufacturing, and professional services, supported by consistent in-migration and corporate expansion. In Q2 2025, the Nashville area recorded an unemployment rate of 3.0%, among the lowest in the nation.2
On the industrial and outdoor-storage front, Nashville remains one of the Southeast’s most active markets. Industrial vacancy hovers around 4-5% (Q3 2025) despite steady speculative construction, signaling strong absorption and healthy tenant demand.2 The city’s strategic position — at the crossroads of I-24, I-40, and I-65 — allows reach to roughly 75% of the U.S. population within a day’s drive, making it an attractive hub for logistics, manufacturing, and distribution users.3
In short, Nashville’s combination of population growth, low unemployment, and strong industrial fundamentals provides a solid foundation for continued industrial outdoor storage (IOS) demand and investment.
IOS OVERVIEW
Nashville IOS Opportunity
Industrial outdoor storage serves critical needs that traditional warehouse space can't: equipment storage, vehicle parking, and materials staging. While the broader industrial market gets attention, IOS remains relatively underexplored.
Recent IOS lease transactions initiated between 2023 and 2025 average approximately $8,000 per month per acre. The average property size transacted in 2024-2025 was about ~3 acres and is mostly single tenant occupied.
Lease rates have increased by roughly 50% since 2023, reflecting increased tenant demand. Of the leases reviewed, the median site size is about four acres, typically single-tenant occupied (90%).
Key Areas
Nashville’s IOS market continues to attract institutional capital and quality logistics tenants despite broader freight headwinds. Activity is concentrated along the I-65 and I-24 corridors, where submarkets like Southeast where La Vergne and Murfreesboro are, are seeing the highest IOS demand and transaction volume. These areas benefit from direct access to major distribution and manufacturing routes, mirroring the Southeast’s broader industrial expansion. As Davidson County’s limited land supply and rising site costs push development east, investors are targeting the Southeast corridor toward Wilson County, now one of the fastest-growing industrial zones in the metro. Meanwhile, the Southwest/65-South corridor toward Spring Hill and Columbia offers more affordable entry points for IOS users seeking trade-route connectivity and highway access without premium Davidson pricing.
“Nashville's IOS market continues to attract institutional capital and quality logistics tenants despite broader freight headwinds. We're seeing aggressive acquisitions across the Southeast corridor, particularly in the La Vergne industrial submarket, as Davidson County's limited land supply pushes development east. The national transportation sector is navigating a prolonged freight recession with 13 straight quarters of weak demand, but Nashville's 5% industrial vacancy and limited IOS inventory are keeping fundamentals firm. Operators recognize Nashville's central distribution advantage, reaching 75% of U.S. markets within a day's drive. Well-improved Davidson County sites command the highest rates, while La Vergne continues to see the most transaction volume among fleet operators and logistics providers.” - Matthew Graves, Lee & Associates
Nashville’s IOS demand reflects its broader industrial base. Construction and infrastructure contractors need staging and equipment yards as projects expand along I-24, I-65, and I-40. Freight and logistics operators rely on IOS sites for trailer and container parking tied to regional and super regional distribution. Automotive and defense contractors along I-65 need secure fleet storage. Services businesses need fleet storage to serve a growing consumer base.
Market Fundamentals Driving IOS in Nashville
Location & Transportation: Sitting at the intersection of I-24, I-40, and I-65, Nashville can reach roughly 75% of the U.S. population within a one-day drive. The region also benefits from CSX rail connectivity, a growing cargo presence at Nashville International Airport (BNA), and riverport facilities along the Cumberland River. These multimodal options make it a natural hub for logistics, distribution, and outdoor storage users.4
Industrial Market Tightness: Nashville’s industrial market remains undersupplied, with vacancy near 5% as of mid-2025 and strong pre-leasing across most new deliveries (as seen in rising rents). This low vacancy and limited developable land in Davidson County have driven expansion east into La Vergne, Mt. Juliet and other surrounding areas.
Tenant & Demand Profile: IOS demand reflects Nashville’s industrial base: logistics, transportation, and construction lead activity, with consistent need for fleet parking, trailer storage, and equipment yards. The market also serves automotive, commercial and residential services, and infrastructure contractors that value secure outdoor storage near major interstates. Tenant quality is strong — largely established regional or national operators with long-term operational footprints.
Infrastructure & Growth: Major projects such as the I-24 SMART Corridor, I-65 widening, and interchange improvements near La Vergne and Lebanon are reshaping freight efficiency across the metro. These upgrades, combined with ongoing population growth and in-migration, are reinforcing long-term industrial demand.
Investment Environment: Nashville ranks among the top U.S. metros for commercial real estate investment, with institutional groups and private capital both active in logistics and IOS assets. Investor interest remains high due to the metro’s growth trajectory, connectivity, and diversity across tenant industries.
The bottom line: Nashville combines tight industrial fundamentals, national connectivity, and steady tenant demand to create a durable IOS market. Limited land availability in Davidson County and strong logistics infrastructure are steering growth east and south along the interstate corridors, where flexible zoning and new infrastructure investments are unlocking expansion opportunities. With a deep labor pool, balanced cost structure, and institutional capital already active, Nashville offers IOS investors a resilient, long-term foothold in one of the Southeast’s most strategically located logistics markets.
FEATURED LISTINGS
Nashville
2727 Union Hall Road — Clarksville, TN | For Lease
±1.72-acre industrial outdoor storage yard for lease at 2727 Union Hall Road in Clarksville, TN. The M-1 zoned property features a 2,400 SF concrete pad, fully graveled yard, and convenient front access. Ideally suited for construction supply, equipment, or material storage, it offers a functional layout and prime positioning within Clarksville’s industrial corridor.
Please reach out to Matthew Graves for more information.
Frosty Morn Drive – Clarksville, TN | For Lease
±2.35-acre industrial outdoor storage yard for lease on Frosty Morn Drive in Clarksville, TN. The M-2 zoned site is partially paved and graveled, offering secured storage space near downtown. Approximately 0.65 acres are already leased, with the remaining area available for light industrial or equipment storage users.
Please reach out to Matthew Graves for more information.
114 Spence Lane – Nashville, TN | For Lease
Lee & Associates is offering ±1.99 acres for lease at 114 Spence Lane in Nashville, TN. The fenced and secured laydown yard is partially graveled and ideal for short-term storage or equipment use, with lease terms of 1–2 years preferred. The site is strategically located less than 4 miles from downtown Nashville and within 5 miles of BNA Airport, offering quick access to I-40 and I-24.
Site is available in mid-2026. Please reach out to Brett Wallach and Bryan Cahill more information.
LOCAL EXPERTS
Local Brokers & Market Experts
Big thanks to all participants, especially the team at Lee & Associates who helped shape this week’s Market Monday in Nashville. If you’re looking to buy, sell or lease in Nashville, the people below are the ones to call!
Lee & Associates Team
Brett Wallach
Partner
Lee & Associates | Nashville
O 615.751.2340
D 615.751.2345
C 714.401.0615
[email protected]
John Zeffery
Partner
Lee & Associates | Nashville
D 615.866.1134
C 847.606.7415
[email protected]
Perry Wolcott, SIOR
Lee & Associates | Nashville
D 615.866.4770
C 615.957.3331
[email protected]
Mathew Graves
Lee & Associates | Nashville
C 909.633.4818
O 615.751.2340
[email protected]
SOURCES & REFERENCES
1:Nashville Area Chamber of Commerce (https://nashvillechamber.com/blog/press-release-chamber-announces-nashville-msa-grew-by-86-people-per-day-in-2023/)
2:Cushman & Wakefield Q2 2025 Industrial MarketBeat – Nashville (https://assets.cushmanwakefield.com/-/media/cw/marketbeat-pdfs/2025/q2/us-reports/industrial/nashville_americas_marketbeat_industrial_q22025.pdf)
3:CBRE – Emerging Industrial Markets Report (https://www.cbre.com/insights/briefs/emerging-industrial-markets-nashville?utm_source=chatgpt.com#demographics)
4:Nashville Chamber of Commerce - Economic Development, Distribution & Logistics
(https://nashvillechamber.com/economic-development/target-industries/distribution-and-logistics/)
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Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.