NASHVILLE-Nashville’s retail scene has had its fair share of doom and gloom over the past couple of years. There was an exodus of big box stories, including the shuttering of Circuit City, Linens ‘n Things and Goody’s. But Nashville has turned the corner.

Indeed, the vacancy rate for third quarter 2010 was only 7.49%, according to Exceligent’s market trends report. Most of the big box vacancies have been filled, except for a couple of locations in older, less desirable areas. The market has seen little new construction, so the vacancies are tightening up for spaces of all sizes. As vacancies decrease, rental rates are starting to increase.

GlobeSt.com caught up with David Baker, principal of Nashville X Team partner firm Baker Storey McDonald, to discuss how landlords are responding to the improved reality, current market trends, and what he expects in 2011.