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Memphis Office Market Trends

Office Rental Market

  • $18.32 2019 Avg. Asking Rent
  • 16.64 % 2019 Avg. Vacancy Rate
  • 60,000 2019 Office Completions (Sqft)
  • 200,000 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Memphis was $18.32 per square foot, and the office vacancy rate across the market averaged 16.64 %. During 2019, developers added 60,000 square feet of new office space to the Memphis market inventory. Office developments estimated for delivery during 2020 total 200,000 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • Memphis Class A Office Buildings$20.77
  • Memphis Class B Office Buildings$18.38
  • Memphis Class C Office Buildings$16.93
  • TN Class A Office Buildings$31.64
  • TN Class B Office Buildings$21.27
  • TN Class C Office Buildings$18.63

Memphis, TN Office Asking Rents by Class

Office asking rents vary across the Memphis office market depending on several factors, one of which is property class. While rents for Class A office buildings in Memphis averaged $20.77 per square foot in 2019, Class B office properties garnered average rental rates of $18.38 per square foot. Rental rates for Class C office property in Memphis averaged $16.93 per square foot. On a statewide level, Class B office space rents averaged $21.27 per square foot, while rents for Class A office space across Tennessee averaged $31.64 per square foot. On average, Class C office properties in Tennessee commanded rents of $18.63 per square foot.

2019 OFFICE VACANCY RATES

Submarket Asking Rents Vacancy Rates
Memphis - Poplar Corridor$23.756.58 %
Memphis - East$18.6120.30 %
Memphis - Downtown$18.4010.66 %
Memphis - SR 385 Corridor$17.8423.55 %
Memphis - Midtown$16.6413.77 %
Memphis - Northeast$16.3911.98 %
Data provided by Commercial Edge
  • The lowest office vacancy rate in 2019 in Memphis was 6.58 % in the Memphis - Poplar Corridor submarket, where asking rents averaged $23.75.
  • The highest office vacancy rate in 2019 in Memphis was 23.55 % in the Memphis - SR 385 Corridor submarket, where asking rents averaged $17.84.

OFFICE CONSTRUCTION IN Memphis, TN

  • Memphis, TN Total Sqft completed in 2019 60,000
  • Memphis, TN Total Sqft under construction in 2020 200,000
10 Largest Office Buildings in Memphis
Building name Address Total Sqft Year built
FedEx World Headquarters 3610 Hacks Cross Road, 38125 1,100,000 2000
Crosstown Concourse 495 North Watkins Street, 38104 1,000,000 2017
Clark Tower 5100 Poplar Avenue, 38117 668,505 1973
4001 Airways Blvd 4001 Airways Blvd, 38116 521,286 1985
165 Madison Avenue 165 Madison Avenue, 38103 509,000 1966
150 Peabody Place 150 Peabody Place, 38103 400,000 2017
One Commerce Square 40 South Main Street, 38103 399,350 1972
Audubon Woods Business Campus 755 Crossover Lane, 38117 360,000 1981
Crescent Center 6075 Poplar Avenue, 38119 337,916 1986
Raymond James Tower 50 North Front Street, 38103 334,668 1984
Largest Office Properties Recently Completed in Memphis
Office building Address Sqft Completed
FedEx Logistics Headquarters 145 Lt. George W. Lee Avenue, 38103 194,467 2020
Orion Federal Credit Union Headquarters 400 Monroe Avenue, 38103 75,000 2019
Crosstown Concourse 495 North Watkins Street, 38104 1,000,000 2017
150 Peabody Place 150 Peabody Place, 38103 400,000 2017
949 South Shady Grove Road 949 South Shady Grove Road, 38120 155,000 2017
International Place IV 1740 International Drive, 38197 241,177 2014
3495 Hacks Cross Road 3495 Hacks Cross Road, 38125 113,000 2013
Triad Centre III 6070 Poplar Avenue, 38119 148,810 2009
Medtronic Campus - 1770 Pyramid Place 1770 Pyramid Place, 38132 176,532 2008
Ridgeway Center - 999 Shady Grove 999 South Shady Grove Road, 38120 155,000 2008
Data provided by Commercial Edge

Office Spaces for Rent in Tennessee

  • Downtown Memphis Office Space
  • River Oaks Office Space
  • Whitehaven Office Space
  • Cordova Office Space
  • Bal - Moral Office Space
  • Windyke - Southwind Office Space
  • Brennan Office Space
  • Shelby Farms Park Office Space
  • Hickory Hill Office Space
  • Uptown Memphis Office Space
  • Eastgate Office Space

MEMPHIS OFFICE SALES TRENDS

  • $185.992019 Avg. Price per Sqft
  • 99.50 %Y-o-Y Avg. PpSF Change
  • $183.8M2019 Office Sales Volume
  • 112019 Number of Transactions

In 2019, office sales in Memphis averaged $185.99 per square foot. This marked a 99.50 % increase in office price per square foot, compared to the previous year. A total of 11 office sales closed on the Memphis office market in 2019, amounting to a total sales volume of $183.8M.

Average Office Sale Price per Sqft

Memphis, TN Sales Trends

  • Memphis Price per Sqft$185.99
  • Tennessee Price per Sqft$195.66

Office Sales - Trend and Volume

  • Memphis, TN Total Office Sales Volume in 2019 $183.8M
  • Memphis, TN Total Number of Office Sales Closed in 2019 11

Largest Memphis Office Sales in 2019

Property name Address Date Price
International Place IV 1740 International Drive 12/31/2019 $76,000,000
6525 North Quail Hollow Road 6525 North Quail Hollow Road 5/16/2019 $15,900,000
3742 Tyndale Drive 3742 Tyndale Drive 5/16/2019 $12,500,000
5860 Ridgeway Center Pkwy 5860 Ridgeway Center Pkwy 5/3/2019 $9,850,000
1727 Kirby Pkwy 1727 Kirby Pkwy 8/16/2019 $8,700,000
Data provided by Commercial Edge

The Memphis office market contains an inventory of 26,982,720 square feet of office space, in 350 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Memphis 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.

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