Memphis, TN Commercial Real Estate

Memphis, TN Commercial Real Estate Market

The Memphis commercial real estate market was booming at the beginning of 2017, with over 160,000 square feet of leasing activity, most of which consisted of small-size to mid-size leases in the East, 385 Corridor, Airport, and Downtown submarkets. In addition, there are currently two office developments under construction that total 300,000 square feet.

Central Gardens is a historic neighborhood in Midtown Memphis. Filled with homes built in the early 1900’s, this prestigious but diverse area attracts everyone from young families to significant and established individuals. Cooper-Young is another thriving neighborhood in Midtown that is being restored and is quickly attracting new residents. Cooper-Young has some of the most vibrant local restaurants and shopping stores to be found in the city. The rental market in the Midtown neighborhoods is doing well, with only 17% of Midtown Memphis office space currently vacant.

The high-income area of Germantown is just east of Memphis and is one of the most sought-after areas in the Memphis commercial real estate market. This metro area is a popular choice for families looking for excellent public schools, large homes, and a safe, attractive neighborhood to call their own. This booming East Memphis commercial market has over 7 million square feet of rental space, of which only 14% is currently vacant. With an average rate of $27 per square foot per year, this may not be the cheapest place to locate your Memphis office space, but you will definitely be taking advantage of the demand.

Situated on the north side of the island, Harbor Town on Mud Island is a sought-after area for everyone from professional athletes and politicians to young families and retirees. Residents enjoy extraordinary water views and a small community feel with local grocery stores. The Downtown Memphis commercial market is looking promising for 2017, with rentals priced at an average of $19 per square foot per year.

Employment in Memphis, TN

Memphis is known for all of its tourist destinations as well as its rich tradition of entrepreneurship. With many small businesses, as well as multiple large Fortune 500 companies, Memphis has a variety of different job markets and opportunities.

• FedEx is the largest private employer in Memphis, providing jobs for more than 30,000 people. It was recently ranked 58th on the 2016 Fortune 500, and the headquarters has been based in Memphis since 1973.
• St. Jude Children’s Research Hospital is internationally recognized for its revolutionary research and innovative treatments of children with cancer and other life-threatening diseases. The hospital employs more than 3,700 people in the Memphis area. St. Jude is the first and only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children.
• AutoZone is another Fortune 500 company located within Memphis, providing positions for 2,300 people in Memphis. The auto supplies distributor is quickly becoming one of the fastest growing chains in the industry.
• The fourth largest employer in Memphis is International Paper.The global leader has businesses in paper and paper distribution, packaging, and forest products, including building materials. This Fortune 500 company employs nearly 56,000 people worldwide, with close to 2,000 of those being in Memphis alone.

Overall, positions that utilize Memphis office space are on the rise, particularly in the downtown market.