Memphis Office Rent Price & Sales Report

2021 Office Space Rent & Sales

  • $18.77 2021 Avg. Asking Rent
  • 1.14% Y-o-Y Avg. Asking Rent Change
  • 16.28% 2021 Office Vacancy Rate
  • $183.2M2021 Total Office Sales
  • $126.18Avg. Sale Price/SF

Memphis office price per square foot in 2021 was $18.77 on average. This marked a +1.14% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 16.28% across all asset classes combined. The 16 transactions that closed here throughout 2021 amounted to a total sale volume of $183.2M. Memphis office space commanded an average sale price per square foot of $126.18.

Average Rent by Office Class

2021 Average Office Rent per Square Foot

  • Memphis Class A & A+ Office Space$19.89
  • Memphis Class B Office Space$18.52
  • Memphis Class C Office Space$15.40
  • Tennessee Class A & A+ Office Space$31.28
  • Tennessee Class B Office Space$21.79
  • Tennessee Class C Office Space$17.11

Memphis, TN Office Asking Rents by Class

Average office rent in Memphis rested at $18.77 per square foot in 2021. 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 Memphis averaged $19.89 per square foot. Across all submarkets, class B office space recorded an average asking rent of $18.52 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $15.40 per square foot, on average. Comparably, statewide Tennessee average office rents by class in 2021 were: $31.28 per square foot for class A office space; $21.79 per square foot for class B office space; $17.11 per square foot for class C office space.

2021 Office Vacancy Rates in Memphis

Submarket Asking Rents Vacancy Rates
Memphis - Poplar Corridor $24.27 7.53%
Memphis - Downtown $18.49 23.80%
Memphis - SR 385 Corridor $18.00 26.47%
Memphis - East $17.97 15.58%
Memphis - Northeast $17.43 28.72%
Data provided by Commercial Edge
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 Memphis market was 16.28% in 2021. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Memphis was 7.53% in the Memphis - Poplar Corridor submarket, while the highest office vacancy in the market was 28.72%, recorded in Memphis - Northeast.

Office Spaces for Rent in Tennessee

Memphis Office Sale Price per SF

  • $126.182021 Avg. Price per SF
  • 19.02%Y-o-Y Avg. PpSF Change
  • $183.2M2021 Office Sales Volume
  • 162021 Number of Transactions

Memphis, TN Sale Price per SF Trend

  • Memphis Avg. Sale Price per SF in 2021$126.18
  • Tennessee Avg. Sale Price per SF in 2021$209.25
Memphis office space cost in 2021 marked a +19.02% change compared to the previous year. The sale price for office space in Memphis averaged $126.18 per square foot in 2021, across all market subdivisions and asset classes. Conversely, the statewide Tennessee average office sale price during the same time period was $209.25 per square foot.

2021 Office Sales Volume

  • Memphis, TN Total Office Sales Volume in 2021 $183.2M
  • Memphis, TN Total Number of Office Sales Closed in 2021 16
A total of 16 deals closed on the Memphis office market in 2021, adding up to a yearly sales volume of $183.2M. Notably, the largest transaction on the market saw Crescent Center change hands for $67,500,000 on 9/28/2021.

Largest Memphis Office Sales in 2021

Property name Address Date Price
Crescent Center 6075 Poplar Avenue 9/28/2021 $67,500,000
Ridgeway Center - 860 Ridge Lake Blvd 860 Ridge Lake Blvd 6/24/2021 $26,900,000
3495 Hacks Cross Road 3495 Hacks Cross Road 2/15/2021 $24,441,600
Briarcrest Professional Building 6286 Briarcrest Avenue 4/22/2021 $21,250,000
One Memphis Place 200 Jefferson Avenue 8/24/2021 $15,270,000
Data provided by Commercial Edge

Coworking Spaces in Tennessee

2021 Office Construction in Memphis, TN

  • Memphis, TN Total SF completed in 2021 45,000
  • Memphis, TN Total SF under construction in 2022 80,000

During 2021, 45,000 square feet of new office space were delivered across the market. At the close of 2021, the Memphis office inventory included 1 buildings equal to or larger than 25,000 square feet, which comprised 45,000 square feet of office space. Looking forward, development activity throughout 2022 is estimated to add 80,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Memphis
Office building Address SF Completed
Crosstown Concourse 495 North Watkins Street, 38104 1,000,000 2017
949 South Shady Grove Road 949 South Shady Grove Road, 38120 155,000 2017
Automotive Sales Facility 1,500 SF on .925 AC 2655 Mt Moriah Rd, 38115 1,500 2013
Triad Centre III 6070 Poplar Avenue, 38119 148,810 2009
Ridgeway Center - 999 Shady Grove 999 South Shady Grove Road, 38120 155,000 2008
62 North Main Street 62 North Main Street, 38103 93,699 2008
5520 Summer Ave 5520 Summer ave , 38134 6,060 2006
5520 Summer Ave 5520 Summer ave , 38134 6,060 2006
1840 Pyramid Place 1840 Pyramid Place, 38132 130,399 2004
Physicians Plaza of Bartlett 7865 Educators Lane, 38133 29,874 2004

Worth noting among recent office completions on the Memphis market is Crosstown Concourse, which is currently the largest new office development in the city, at 1,000,000 square feet.

Data provided by Commercial Edge

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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 2021 through December 31st 2021. Construction pipeline data represented herein is valid as of April 2022. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market 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.