Oracle Subleases Two Floors as Headquarters Project is Stalled

Oracle is expanding in Nashville after maxing out its office lease ahead of its $1.35 billion headquarters development.

The tech giant subleased 60,000 square feet spanning two full floors in a Capitol View office building at 500 11th Ave North from HealthStream, the Nashville Business Journal reported. HealthStream is offloading space amid a shift toward a hybrid work model; it is downsizing to about 30,000 square feet in the building.

Memphis-based Boyle Investment Company owns the 300,000-square-foot building.

Oracle filled up the nearby Radius Building, at 601 11th Ave North, where it leases about 150,000 square feet. The company has steadily expanded within that space, adding a full floor last July and another 16,000 square feet earlier this year. With the sublease, Oracle’s office footprint in Nashville now surpasses 200,000 square feet.

The building also houses the Nashville Area Chamber of Commerce and CoStar Group, which recently leased 34,000 square feet.

Oracle’s expansion comes as construction on its planned $1.35 billion East Bank campus has stalled. Nearly four years after securing incentives tied to its goal of employing 8,500 workers in Nashville by 2031, no start date has been announced. The company had roughly 700 employees in the city at the end of 2023, according to state records.

Oracle’s East Bank project, the largest economic development deal in the history of the city and state, gained even greater significance last year when Chairman Larry Ellison announced the site would become the company’s global headquarters. Nashville approved incentives of $175 million, and the state of Tennessee approved $65 million.

Architect Norman Foster has been tapped to design the campus, set on 70 acres that Oracle purchased for $277 million.

Tech sector investment has put Nashville at the top of North American office markets. It led net absorption in the United States and Canada, with a 2.3 percent increase between the third quarter of 2023 through the second quarter of last year, according to CBRE.

—Rachel Stone