T
he real estate analytics giant, CoStar Group's STR division, has secured a lease at Boyle Investment Company's Capitol View office building at 500 11th Avenue North in downtown Nashville. This move will see the company relocate from its Hendersonville base of 735 East Main Street, where it has been since 2002. The new location will place STR alongside notable tenants like the Nashville Chamber of Commerce, HealthStream, and the Nashville Convention & Visitors Corporation. The lease negotiation was handled by Cushman & Wakefield's Jenna Muller, Kelly Sullivan, and John Benziger on behalf of CoStar. Both CoStar and Boyle Investment declined to comment on the deal.
Founded in 1985 as Smith Travel Research, STR is a global leader in hotel industry benchmarking, aggregating data from over 65,000 hotels worldwide. It has regional offices in Nashville, London, and Singapore. The move to Capitol View comes as Nashville's market grapples with the ongoing impact of hybrid and remote work models, which have slowed large office transactions nationwide. However, the city's metrics are looking good compared to peers, with a vacancy rate of 22.7 percent in the second quarter, according to Avison Young. Demand is strong, with 186,000 square feet of space taken off the market last quarter thanks to big leases from tech companies.
Oracle recently extended and expanded its lease by 30 percent to 121,000 square feet in the Radius building at 601 11th Avenue North last month. TikTok leased 143,600 square feet in Music Row's Moore Building at 827 19th Avenue South earlier this year. Law Firm Barnes & Thornburg also took a lease in the Moore Building last quarter, snagging 26,000 square feet. Regions Bank leased 27,000 square feet in Roundabout Plaza, at 1600 Division Street.
In addition, a mystery financial services firm is reportedly searching for 500,000 square feet of office space, signaling continued demand in the city's commercial real estate sector. This move indicates a return to normalcy in Nashville's office market, as the city continues to attract major tenants like BCG, which has tripled its space at New City Property's Neuhoff office.
