Memphis, TN Office 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 in the Memphis area.
As of mid-2017, the Greater Memphis 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 commercial real estate in the metro area. Nearly 39% of the local inventory is Class A or A+, while Class B space adds another 55% of product to the market.
Some of the greatest demand for Class A office space in Memphis comes from the Downtown Memphis submarket. Located just south of I-40 along the banks of the Mississippi River, this submarket is home to portfolio buildings such as the Toyota Center, One Commerce Square at 40 South Main Street, and One Memphis Place on Jefferson Avenue. The local commercial real estate market sees a lot of demand from the communities of Raleigh and Cordova.
Memphis, TN Commercial Inventory Breakdown
Office Spaces
Total: 28,896,204 SF
By square footage range:
- 50k to 100k SF: 7,516,170 SF / 26.01% of total office
- 100k to 500k SF: 16,549,943 SF / 57.27% of total office
- 500k to 1M SF: 2,730,091 SF / 9.45% of total office
- > 1M SF: 2,100,000 SF / 7.27% of total office
By class:
- Class A: 9,543,513 SF / 33.03% of total office
- Class B: 15,336,482 SF / 53.07% of total office
- Class C: 1,561,909 SF / 5.41% 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 |
| 18 Main Pinch District - Phase 2 | SEC A.W Williams Avenue & North Front Street, 38103 | 531,300 | n/a |
| 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 |
Most Recently-Built Office Buildings
in Memphis
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| 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 |
| Southwind Office Center - 3251 Players Club Pkwy | 3251 Players Club Pkwy, 38125 | 61,267 | 2008 |
Memphis, TN Green Office Space
The 2017 National Green Building Adoption Index surveyed the top 30 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 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 property. One example of a LEED-certified building is the Triad Centre III on Poplar Avenue. Located in the River Oaks neighborhood, this 148,810-square-foot Class A 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 all have a strong presence here and create a consistent demand for commercial real estate.
- Transportation & Logistics – White-collar office employment is created by the numerous transportation-related businesses in the city, 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 the metro that drive the demand for white-collar labor.
- Healthcare – Merck, Smith & Nephew, Medtronic, and the St. Jude Children's Research Hospital are all located here.
- Corporate Office – A variety of major corporate locations create demand for Class A 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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