Memphis, TN - Office Market Overview
The Memphis Metropolitan Area includes the Audubon, Bal-Moral, and Hickory Hill office space submarkets. With a metropolitan population of over 1.3 million people, the economy in Memphis is driven in large part by the education and transportation industries, which create a robust demand for white-collar office space in the Memphis area.
As of mid-2017, the Greater Memphis office market encompasses over 22 million square feet of existing office space in properties larger than 50,000 square feet. Located in the southwestern part of Tennessee, the city is a major transportation hub and a Mississippi River crossing for both the I-40 and I-55 interstate freeways.
Memphis, TN - Office Inventory Description
Memphis has historically been a major hub in the country's transportation system, dating all the way back to the Civil War. Transportation and logistics, along with the numerous corporate offices in the city, create significant demand for commercial real estate in Memphis, TN. With a gross metropolitan product of nearly $68 billion annually, there is a steadily increasing need for white-collar office space in Memphis. Nearly 39% of the local office inventory is Class A or A+, while Class B office space adds another 55% of product to the office market.
Some of the greatest demand for Class A office space in Memphis comes from the Downtown Memphis office submarket. Located just south of I-40 along the banks of the Mississippi River, this office submarket is home to portfolio office buildings such as the Toyota Center, One Commerce Square at 40 South Main Street, and One Memphis Place on Jefferson Avenue.
Memphis, TN Commercial Inventory Breakdown
Office Spaces
Total: 28,054,050 SF
By square footage range:
- 50k to 100k SF: 7,657,316 SF / 27.29% of total office
- 100k to 500k SF: 16,097,943 SF / 57.38% of total office
- 500k to 1M SF: 2,198,791 SF / 7.84% of total office
- > 1M SF: 2,100,000 SF / 7.49% of total office
By class:
- Class A: 9,543,513 SF / 34.02% of total office
- Class B: 15,336,482 SF / 54.67% of total office
- Class C: 1,613,055 SF / 5.75% of total office
Top 10 Largest Office Buildings
in Memphis
| Office building | Address | 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 |
| 80 North Main Street | 80 North Main Street, 38103 | 500,000 | n/a |
| 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 |
| The Clipper | NEC East Pontotoc Avenue & Sourth 2nd Street, 38103 | 340,000 | n/a |
Most Recently-Built Office Buildings
in Memphis
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| 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 |
| Southwind Office Center - 3251 Players Club Pkwy | 3251 Players Club Pkwy, 38125 | 61,267 | 2008 |
| Legacy Center | 1661 Aaron Brenner Drive, 38120 | 60,581 | 2008 |
Memphis, TN - Green Office Space
The 2017 National Green Building Adoption Index surveyed the top 30 office markets in the U.S. and discovered that the percentage of green office space, including LEED and Energy Star-rated office space, has reached nearly 38%. This is among office buildings larger than 50,000 square feet.
While Memphis didn't make the top 30, the city does have several examples of energy-efficient Class A office property. One example of a LEED-certified office building in Memphis is the Triad Centre III on Poplar Avenue. Located in the River Oaks neighborhood, this 148,810-square-foot Class A office property was built in 2009 and holds a highly-coveted LEED Gold certification.
Memphis, TN's Top Office-Using Sectors
The transportation & logistics, manufacturing, healthcare, and corporate office sectors are all top office-using business groups and create a consistent demand for Memphis commercial real estate.
- Transportation & Logistics – White-collar office employment is created by the numerous transportation-related businesses in Memphis, including FedEx Express, Katt Worldwide Logistics, and Williams-Sonoma distribution.
- Manufacturing – International Paper, Mueller Industries, Thomas & Betts, Verso Paper, and Wright Medical Group are some of the larger publicly traded firms in Memphis that drive the demand for white-collar office space in the metropolitan area.
- Healthcare – Merck, Smith & Nephew, Medtronic, and the St. Jude Children's Research Hospital are all located in Memphis.
- Corporate Office – A variety of major corporate locations in Memphis create demand for Class A office space, including firms such as Cargill Cotton, Evergreen Packaging, Information Technology, Nike, the IRS, and investment banking firm Morgan Keegan & Company.
Memphis Demographics
Population
- Total Population654,723
- Male Population(47.5 %) 311,133
- Female Population(52.5 %) 343,590
- Median Age33.70
Income/Financial
- Average Household Income$58,543
- Median Household Income$38,230
- Median Income Under 25$21,695
- Median Income 25-44$37,471
- Median Income 45-64$44,918
- Median Income Over 65$34,824
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Cities near Memphis, TN
Neighborhoods
- Alcy - Dunn Office Space
- Audubon Office Space
- Bal - Moral Office Space
- Berclair Office Space
- Bickford Washington Office Space
- Binghampton Office Space
- Brennan Office Space
- Central Gardens Office Space
- Chickasaw Gardens Office Space
- Chickasaw Oaks Office Space
- Colonial Office Space
- Cordova Office Space
- Downtown Memphis Office Space
- Eastgate Office Space
- Evergreen Office Space
- Hickory Hill Office Space
- Highland Heights Office Space
- Howzye Office Space
- Meadow Brook Office Space
- Med District Office Space
- Memphis International Airport Office Space
- Midtown Memphis Office Space
- Oakville Office Space
- Parkway Village Office Space
- Raleigh Office Space
- River Oaks Office Space
- Shelby Farms Park Office Space
- Uptown Memphis Office Space
- Whitehaven Office Space
- Windyke - Southwind Office Space
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