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 Yardi Research
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 Yardi Research

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
225 Brookview Centre Way 225 Brookview Centre Way, 37919 13,356 2026
Parkside Drive Class A Office with View Dynamic Glass 10142 Parkside Drive, 37922 81,960 2019
Brookview Town Centre - Brookview Promenade Office Building 265 Brookview Centre Way, 37919 190,000 2009
Tennessee Department of Children’s Services 10 Year Lease 2600 Western Ave, 37921 55,000 2009
11470 Parkside 11470 Parkside Dr, 37934 22,032 2009
430 Montbrook Ln 430 Montbrook Ln, 37919 19,680 2009
Two Lakeside Centre 2095 Lakeside Centre Way, 37922 96,336 2008
Parkside Plaza 11400 Parkside Drive, 37934 102,900 2007
The Offices at Water's Edge 608 Mabry Hood Road, 37932 30,000 2007
5820 Walden Drive - Prime Location 5820 Walden Drive, 37919 5,000 2007

Worth noting among recent office completions on the Knoxville market is 225 Brookview Centre Way, which is currently the largest new office development in the city, at 13,356 square feet.

Data provided by Yardi Research

See reports for other markets

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 Yardi Research Data, 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 Yardi Research Data can guarantee that the information provided is complete.