Knoxville Commercial Office Space for Rent

Q3 2026

Q3 2026 Knoxville Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Knoxville's growth story in Q3 2026 is industrial and energy investment. TRISO-X announced 1,140 jobs at a new nuclear fuel facility in Oak Ridge, and Greenheck's $300 million campus at Midway Business Park continues to build toward 440 jobs. On TenantBase, Q3 Knoxville tenant searches split between retail (54.5%) and office (45.5%), with office demand more than doubling from 21.1% in Q2.

Sector Snapshot

  • Office: Demand rising. Office reached 45.5% of TenantBase searches, up from 21.1% in Q2.
  • Industrial: Investment-led. Oak Ridge and Knox County landed advanced manufacturing and nuclear projects worth more than $1.6 billion combined.
  • Retail: Leading demand. Retail held the largest share of TenantBase searches for the third straight quarter.
  • Multifamily: Stable occupancy. Occupancy was 94.4%, with average asking rent of $1,502.

Knoxville Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Knoxville region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 54.5%
  • Office: 45.5%
  • Warehouse/Industrial: 0.0%

Three-Quarter Trend

  • Retail/Storefront: 72.4% in Q1, 55.8% in Q2, 54.5% in Q3
  • Office: 22.4% in Q1, 21.1% in Q2, 45.5% in Q3
  • Warehouse/Industrial: 5.1% in Q1, 23.2% in Q2, 0.0% in Q3

Key Takeaways

  • Office demand more than doubled, from 21.1% of searches in Q2 to 45.5% in Q3.
  • Office tenants want flexibility. Most office searches sought terms under one year, for spaces of 667 to 1,500 SF.
  • Retail tenants are committing longer. Most retail searches sought terms of 2 to 5 years.
  • No warehouse searches were recorded in Q3, after warehouse reached 23.2% in Q2.

Office Market

TenantBase Office Activity

Demand share: 45.5% of Knoxville tenant searches, up from 21.1% in Q2 and 22.4% in Q1.

Lease terms: Terms under one year were the most requested, followed by 3 to 5 year terms and a smaller share of 5+ year terms.

Space requirements by term:

  • Under 1 year: 667 to 1,500 SF
  • 3 to 5 years: 2,500 to 5,000 SF

TenantBase data vs. the market: Knoxville office demand on TenantBase splits between small, short-term spaces and larger multi-year requirements. Tenants signing 3 to 5 year leases are looking for roughly three times the space of short-term tenants.

Retail Market

TenantBase Retail Activity

Demand share: 54.5% of Knoxville tenant searches, compared with 55.8% in Q2 and 72.4% in Q1.

Lease terms: 2 to 3 year and 3 to 5 year terms were requested equally and together made up the majority of retail searches, followed by terms under one year.

Space requirements by term:

  • Under 1 year: 500 to 1,000 SF
  • 2 to 3 years: 1,000 to 2,500 SF

TenantBase data vs. the market: Knoxville retail tenants on TenantBase are seeking small-format storefronts on multi-year terms. Downtown's stadium district, where a 245-unit apartment project is proposed next to Covenant Health Park, is adding residents and foot traffic for street-level retail.

Development & Economic Drivers

  • TRISO-X: plans a nuclear fuel facility and research center in Oak Ridge that will create 1,140 jobs (WVLT, July 2026)
  • Greenheck Group: a $300 million manufacturing campus at Midway Business Park on Thorngrove Pike, with 440 jobs planned (Hoodline, August 2026)
  • LIS Technologies: a $1.38 billion laser uranium enrichment facility planned in Oak Ridge (WSMV, January 2026)
  • Stadium district: a seven-story, 245-unit apartment project is proposed next to Covenant Health Park in downtown Knoxville (Hoodline, July 2026)
  • Jobs: metro employment was up 0.7% year over year, with unemployment at 3.4% (Yardi Matrix)

Multifamily Market

Knoxville average asking rent was $1,502 in Yardi Matrix's September 2026 report, down 1.1% year over year. Occupancy in stabilized properties was 94.4%, and 3,641 units were under construction.

Q4 2026 Outlook

  • Office: Expect continued demand for small, flexible spaces alongside larger multi-year requirements.
  • Industrial: Expect Oak Ridge nuclear and energy projects to drive supplier and logistics demand as they move toward construction.
  • Retail: Expect small-format storefront demand to remain the largest share of TenantBase searches.
  • Multifamily: Expect occupancy to hold in the mid-90s as the construction pipeline stays moderate.

Frequently Asked Questions

What type of commercial space are Knoxville tenants searching for in 2026?

In Q3 2026, 54.5% of Knoxville tenant searches on TenantBase were for retail space and 45.5% were for office space.

What lease terms do Knoxville office tenants want?

Terms under one year were the most requested by Knoxville office tenants on TenantBase in Q3 2026, typically for 667 to 1,500 SF.

What major projects are coming to the Knoxville region?

TRISO-X plans 1,140 jobs at a nuclear fuel facility in Oak Ridge, LIS Technologies plans a $1.38 billion facility in Oak Ridge, and Greenheck is building a $300 million campus at Midway Business Park.

How can I find commercial space in Knoxville at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Knoxville region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Knoxville, July 1 to September 30, 2026
  2. TenantBase, Knoxville Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Knoxville Commercial Real Estate Market Report, Q1 2026
  4. WVLT, TRISO-X to Add 1,140 Jobs in Oak Ridge, July 2026
  5. Hoodline, Greenheck's $300M Campus on Thorngrove Pike, August 2026
  6. WSMV, New Energy Development in Oak Ridge, January 2026
  7. Hoodline, Apartment Project Near Knoxville Ballpark, July 2026
  8. Yardi Matrix, Knoxville Multifamily Market Report, September 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.