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This week the Radius+ team dug into the Memphis, TN-MS-AR CBSA Historical Supply Growth in Memphis, TN-MS-AR: 2022: 4.2% 2023: 3.3% 2024: 5.7% 2025: .03% Memphis saw substantial supply additions from 2022 to 2024, contributing to rental rate compression. Broader economic challenges, including population decline,…
This Cushman & Wakefield market report analyzes Memphis office space conditions in Q1 2026, documenting a 17.2% vacancy rate, 88,000 square feet of year-to-date net absorption, and an overall average asking rent of $19.76 per square foot across the market. The report indicates that leasing activity concentrates in East Memphis, the 385 Corridor, and Northeast Memphis, with healthcare, professional services, and finance as the most active tenant groups, while landlords emphasize occupancy and tenant retention through concessions and longer lease terms despite pricing conditions that remain aggressive.
The Memphis industrial market in Q1 2026 achieved 2.5 million square feet of net absorption, the highest quarterly figure since Q4 2022, driven primarily by bulk deals exceeding 500,000 square feet and expansion activity from technology and energy manufacturers including Jabil and Hyosung HICO. The vacancy rate declined to 7.7%, the lowest since Q3 2024, with net asking rents for warehouse/distribution space remaining relatively stable at $4.15 per square foot while concessions continue to moderate as large-block supply tightens.
The Memphis industrial market absorbed 5.1 million square feet in 2025, representing a 122% increase over 2024, driven by demand from energy, power, and technology sectors including solar panel storage (1.4 million square feet) and data center operations. Vacancy fell 40 basis points to 8.5% in the fourth quarter, while average net rent for warehouse/distribution declined slightly to $4.12 per square foot as landlords prioritized occupancy through concessions rather than rate reductions, with base rent escalations moderating to the 3% to 3.25% range.
The Cushman & Wakefield Memphis Office Q4 2025 report analyzes market fundamentals for the Memphis office sector, showing a 17.6% vacancy rate, 85,000 square feet of year-to-date net absorption, and an overall asking rent of $19.28 per square foot, with employment at 661,000 and unemployment at 4.6%. The report notes that Memphis recorded its lowest annual absorption since 2021 but ended the year positive through midsize move-ins with no large move-outs, while large deals remain rare and medical tenants are driving increased demand in the 5,000–15,000 square foot range, with tenant improvement allowances becoming a key factor in closing deals.