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)
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 | $23.75 | 6.58 % |
| Memphis - East | $18.61 | 20.30 % |
| Memphis - Downtown | $18.40 | 10.66 % |
| Memphis - SR 385 Corridor | $17.84 | 23.55 % |
| Memphis - Midtown | $16.64 | 13.77 % |
| Memphis - Northeast | $16.39 | 11.98 % |
- 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
| 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 |
| 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 |
Office Spaces for Rent in Tennessee
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 |
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.