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
Total: 28,044,050 SF
By square footage range:
- 50k to 100k SF: 7,657,316 SF / 27.3% of total office
- 100k to 500k SF: 16,087,943 SF / 57.37% 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
- Class A: 9,704,729 SF / 34.61% of total office
- Class B: 15,091,591 SF / 53.81% of total office
- Class C: 1,696,730 SF / 6.05% of total office
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.
- Total Population654,723
- Male Population(47.5 %) 311,133
- Female Population(52.5 %) 343,590
- Median Age33.70
- 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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