Knoxville Office Rent Price & Sales Report

2024 Office Space Rent & Sales

  • $23.11 2024 Avg. Asking Rent
  • 0.54% Y-o-Y Avg. Asking Rent Change
  • 5.28% 2024 Office Vacancy Rate
  • $42.5M2024 Total Office Sales
  • $118.80Avg. Sale Price/SF

Knoxville office price per square foot in 2024 was $23.11 on average. This marked a +0.54% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 5.28% across all asset classes combined. The 4 transactions that closed here throughout 2024 amounted to a total sale volume of $42.5M. Knoxville office space commanded an average sale price per square foot of $118.80.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2024 Average Office Rent per Square Foot

  • Knoxville Class A & A+ Office Space$23.71
  • Knoxville Class B Office Space$23.64
  • Knoxville Class C Office Space$16.75
  • Tennessee Class A & A+ Office Space$30.18
  • Tennessee Class B Office Space$23.45
  • Tennessee Class C Office Space$17.82

Knoxville, TN Office Asking Rents by Class

Average office rent in Knoxville rested at $23.11 per square foot in 2024. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Knoxville averaged $23.71 per square foot. Across all submarkets, class B office space recorded an average asking rent of $23.64 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $16.75 per square foot, on average. Comparably, statewide Tennessee average office rents by class in 2024 were: $30.18 per square foot for class A office space; $23.45 per square foot for class B office space; $17.82 per square foot for class C office space.

2024 Office Vacancy Rates in Knoxville

Submarket Asking Rents Vacancy Rates
Farragut - Woodland Acres $25.18 13.35%
Knoxville - West $23.18 1.56%
Knoxville - University $22.88 1.04%
Cedar Bluff - Hardin Valley $21.62 7.51%
Knoxville - Downtown $20.15 3.69%
Outlying Knox County $15.75 19.58%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Knoxville market was 5.28% in 2024. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Knoxville was 1.04% in the Knoxville - University submarket, while the highest office vacancy in the market was 19.58%, recorded in Outlying Knox County.

Office Spaces for Rent in Tennessee

Knoxville Office Sale Price per SF

  • $118.802024 Avg. Price per SF
  • 4.43%Y-o-Y Avg. PpSF Change
  • $42.5M2024 Office Sales Volume
  • 42024 Number of Transactions

Knoxville, TN Sale Price per SF Trend

  • Knoxville Avg. Sale Price per SF in 2024$118.80
  • Tennessee Avg. Sale Price per SF in 2024$129.51
Knoxville office space cost in 2024 marked a +4.43% change compared to the previous year. The sale price for office space in Knoxville averaged $118.80 per square foot in 2024, across all market subdivisions and asset classes. Conversely, the statewide Tennessee average office sale price during the same time period was $129.51 per square foot.

2024 Office Sales Volume

  • Knoxville, TN Total Office Sales Volume in 2024 $42.5M
  • Knoxville, TN Total Number of Office Sales Closed in 2024 4
A total of 4 deals closed on the Knoxville office market in 2024, adding up to a yearly sales volume of $42.5M. Notably, the largest transaction on the market saw Cherokee Mills change hands for $20,700,000 on 12/13/2024.
Data provided by Commercial Edge

Coworking Spaces in Tennessee

2024 Office Construction in Knoxville, TN

  • Knoxville, TN Total SF under construction in 2025 121,689
Largest Office Properties Recently Completed in Knoxville
Office building Address SF Completed
New Office Condo 140 Legacy View Way, 37918 1,370 2023
Parkside Drive Class A Office with View Dynamic Glass 10142 Parkside Drive, 37922 81,960 2019
12748 Kingston Pike 12748 Kingston Pike, 37934 170 2010
Brookview Town Centre - Brookview Promenade Office Building 265 Brookview Centre Way, 37919 190,000 2009
Tennessee Department of Children’s Services | 2600 Western Ave Tennessee Department of Children’s Services | 2600 Western Ave, 37921 55,000 2009
11470 Parkside 11470 Parkside Dr, 37934 22,032 2009
6714 Watermour Way 6704 Watermour Way, 37912 3,000 2009
Two Lakeside Centre 2095 Lakeside Centre Way, 37922 96,336 2008
Cornerstone at Northshore Town Center 2099 Thunderhead Rd, 37922 34,648 2008
4662 Holston Dr 4662 Holston Dr, 37914 5,000 2008

Worth noting among recent office completions on the Knoxville market is New Office Condo, which is currently the largest new office development in the city, at 1,370 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2024 through December 31st 2024. Construction pipeline data represented herein is valid as of February 2025. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Knoxville commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.