Standard Parking Signs Lease in Dynamic Nashville Office Market
By Eliza Theiss, Associate Editor
Standard Parking Corporation, a leading national provider of parking facility management services, has inked a lease at Riverview Business Center I and II, bringing the location to full capacity, reported the Nashville Business Journal. CBRE Nashville’s Sarah Pettigrew and CBRE Chicago’s Jarrett Annenberg represented Standard parking in the 33,257-square-foot lease. Taylor Hillenmeyer and J.T. Martin, also of CBRE Nashville, represented the owner, Newport Beach, Calif.-based KBS Real Estate Investment Trust.
Riverview Business Center I and II is located near I-65 and 24 in the MetroCenter submarket of Nashville. According to PropertyShark.com, the two onsite properties were built in 2000 and 2001 and feature 42,960 and 59,662 square feet of space on 16.9 acres. The real estate website assessed the business park’s value at $7,125,000 in 2012. KBS owns the one-story business park through KBS Riverview Business Center I & II,LLC. The REIT owns the 551,184-square-foot, six-building Nashville Flex Portfolio, which it purchased in mid-November 2007 for $53.5 million. The assets were built between 1986 and 2001.
According to CBRE’s data, MetroCenter boasts the fifth lowest office vacancy rate within the metro area’s eight submarkets, with 8.64 percent, lower than Nashville’s average of 12.08 percent. However, Music City’s high vacancy rate stems from the three lowest performing submarkets’ high vacancy rate: Airport North with 14.4 percent, Downtown Nashville with 19.64 and Airport South with 20.64 percent. MetroCenter boasts the third lowest rental rate with $17.17 per square foot, lower than Nashville’s $18.5 average and had a 7,272-square-foot negative absorption rate in the third quarter. Although the Metro’s office absorption fell, the outlook is positive thanks to strong leasing activity, record-breaking sales (details here) and construction projects totaling 730,000 square feet.
Image credits: KBS Realty
Chart credits: CBRE