Market fundamentals remain healthy with occupancy holding in the mid-93% range and demand remaining above the historical norm, but recent absorption has been directed more toward maintaining balance than generating broad-based tightening.
The supply outlook is improving with starts down sharply in 2025 and the under construction count now below its long-term average, setting up fewer completions in 2026 and a more supportive backdrop for occupancy stability and firmer rents once the pipeline clears.
Near term rent performance is expected to be muted as the market works through elevated recent deliveries, with annual rent growth only expected to turn positive in late-2026 as supply pressure gradually eases.
Knoxville’s short-term outlook remains fundamentally healthy, supported by a tight labor market and steady growth that is increasingly concentrated in education and healthcare, government, and other population-serving sectors...
