Office Rents Are Climbing Again — But Only at the Top

The office market may be the most misunderstood asset class in commercial real estate right now. The national narrative — declining values, rising vacancies, the post-pandemic hangover — is accurate at the macro level. But beneath those headline numbers, something interesting is happening at the top of the market: rents for best-in-class, competitive office properties are actually climbing again, and in some markets they're reaching unprecedented levels. According to CoStar, while overall office asking rents have barely moved since early 2020 and effective rents have fallen considerably due to generous tenant concessions, a lack of new supply is now giving the strongest, best-located properties pricing power they haven't had in years.

This dynamic — often called the 'flight to quality' — is reshaping how tenants and landlords approach office leasing decisions. Companies that are requiring employees to return to the office are not compromising on the space they're offering. They want modern amenities, high-efficiency floor plates, strong building technology, and prime locations — and they're willing to pay for them. Properties that can deliver those features are seeing strong leasing interest and rent growth, while older, outdated Class B and C buildings continue to struggle. The bifurcation between the haves and have-nots in office has arguably never been wider.

For the Nashville and Murfreesboro markets, this national trend translates into a clear message: submarket selection and asset quality are everything in office right now. Nashville's Class A submarkets — Cool Springs, Brentwood, and select urban corridors — continue to see healthy tenant demand from companies using high-quality space as a talent recruitment and retention tool. The Murfreesboro office market, while more modest in scale, similarly rewards well-maintained, well-amenitized properties that can make the case for in-office work. For investors considering office in Middle Tennessee, the CoStar data confirms what experienced local brokers already know: the right building in the right location is performing — and the wrong one is an anchor you don't want around your portfolio.