NASHVILLE-With 485,377 sf of net absorption for the third quarter, the office market is on target to reach one million sf of absorption for 2007, according to a CB Richard Ellis Q3 office market report for Nashville.

With the positive absorption, the seventh straight quarter of six-digit absorption, the vacancy rate at the end of the quarter was 9.74%. Average asking lease rates were $17.35 for the quarter. The majority of the space demand occurred in the class A sector, which posted 332,632 sf of positive growth.

Office construction remains strong in the metro area, with 15 buildings under development for a total of more than 2.5 million sf. Nine of the buildings are in the Cool Springs/Brentwood submarket. Among major transactions during the quarter were Verizon Wireless' plans for a 180,000-sf facility that will house 1,300 employees. Employees will relocate from the call center at Grassmere Business Park, as well as from other locations in the southern region. Highwoods Properties is developing the 153,000-sf Cool Springs VI, a replica of Cool Springs III.

“The Nashville area emulates a leading office market with tightening vacancies and rising rents,” the report states. “The office market picked up speed this quarter, as quarterly net absorption was just under 500,000 sf. Office landlords are optimistic as the Nashville MSA posts its seventh consecutive quarter of six-digit absorption.”