The Memphis Commercial Real Estate Market

With deep roots in music, culture, and commerce, Memphis is a rising star in commercial real estate. From industrial growth along the Mississippi River to revitalization in Midtown and beyond, Memphis offers investors a blend of grit, opportunity, and economic staying power. 

With Crexi, you’ll find the tools and insights to uncover new listings, connect with active buyers, and close deals in one of the South’s most strategically positioned metros. As of today, Crexi has enabled brokers in Memphis and beyond to close over $1 trillion in transactions, lease over 8.6 billion square feet, and market to a growing community of more than 2 million monthly active users.

Crexi proudly serves Memphis, Bartlett, Lenox, Germantown, Lakeland, Egypt, and the surrounding neighborhoods as the region's fastest-growing online CRE platform.

The State of Commercial Real Estate in Memphis

Sitting along the iconic Mississippi River, Memphis blends Southern roots with a forward-looking edge. As Tennessee’s largest city and a vital link between the Midwest and the Gulf Coast, it is a leader in logistics, distribution, and industrial strength, thanks in no small part to being the global headquarters of FedEx.

The metro’s footprint stretches into Arkansas and Mississippi, giving it a tri-state reach that fuels both economic diversity and regional growth. Major infrastructure investments and a wave of industrial development have kept Memphis firmly on the radar of national and international investors.

But Memphis isn’t just about movement of goods, it’s about soul. From the birthplace of blues to the legacy of Sun Studio and Stax Records, the city’s cultural identity is deeply woven into its neighborhoods and commercial corridors. That energy draws creatives, entrepreneurs, and developers looking to build where culture and commerce meet. 

Historic districts are being revitalized, entertainment hubs are expanding, and mixed-use projects are breathing new life into iconic blocks, proof that Memphis’ real estate momentum is as much about vibe as it is about value.

Memphis Regional Breakdown

While population growth in the Memphis metro has held steady in recent years, the region’s diversity and geographic reach continue to offer strong potential for long-term momentum. From its core counties across Tennessee, Mississippi, and Arkansas to a blend of urban centers and suburban communities, the area reflects both historical roots and evolving opportunity. Local leaders are leaning into smart development, aiming to attract new residents, drive business investment, and set the stage for sustainable growth.

• Memphis is home to over 618,000, with more than 1.3 million residing in the metropolitan area.
• Core counties in Metropolitan Memphis include Shelby and Tipton in Tennessee, DeSoto County in Mississippi, and Crittenden County in Arkansas.
• Memphis, Southhaven, Bartlett, Germantown, and Collierville are the five largest cities in the metro area.
• Median age is 33.9, about 10 percent younger than the figure in Tennessee. 
• Per capita income is $31,208, and median household income is $51,399, both figures slightly lower than those in the US.

Memphis Job Market

With its strong foundation in logistics and a growing presence in advanced manufacturing, healthcare, and tech, Memphis is steadily evolving into a dynamic employment hub. The city’s excellent location, robust infrastructure, and collaborative economic development efforts continue to attract major employers and fuel job creation. From powerhouse names like FedEx and AutoZone to a thriving small business scene, Memphis blends industrial strength with entrepreneurial energy, making it a smart bet for both talent and investment.

• GDP for the Memphis MSA is more than $81 billion, up from $73 billion in 2015.
• Unemployment rate in Memphis is 3.7%, marking a significant decrease since late 2024.
• Key industries include automotive and suppliers, advanced manufacturing, agribusiness and agtech, supply chain and logistics, information technology, and healthcare and life science, per Memphis Moves.
• Major employers in the metro area are FedEx, AutoZone, First Horizon National Corporation, The Kroger Co., and St. Jude Children’s Research Hospital.
• Advanced manufacturing companies in Memphis employ more than 43,500 workers and generate $12 billion in economic presence.
• About 32% of residents hold bachelor’s or post-graduate degrees.
• Prominent higher education institutions include the University of Memphis, Rhodes College, and Southwest Tennessee Community College.
• Approximately 75% of the US population is within a two-day drive from the city, underscoring Memphis's role as America's Distribution Center.
• Transportation infrastructure includes major interstates I-40 and I-55, the Port of Memphis on the Mississippi River, and the Memphis International Airport (MEM).

Memphis Industrial Market

Market overview (Cushman & Wakefield Q1 2025)

• Inventory: 310,766,905 SF
• Vacancy rate: 8.8%
• Absorption: 560,534 SF (YTD)
• Key leases by tenant: Keller Warehousing & Co-Packing LLC (362,500 SF), Vantive US Healthcare (180,616 SF), Canamex (165,000 SF)
• Under construction: 660,000 SF 
• Largest submarkets: Southeast, DeSoto County, Southwest

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights (as of June 2025):

For Lease (active)

• Asking rate/SqFt (median): $7 per year
• Median SqFt/listing: 18,400
• Days on market: 127
• Total listings on Crexi: 270 spaces

For Sale (active)

• Median asking price: $997,000
• Price/SqFt: $43
• Asking cap rate: 5.7%
• Days on market: 181
• Total listings on Crexi: 54

Sales Comps (past 12 months)

• Median sold price: $566,300
• Sold price/SqFt: $38
• Total sales volume: $252.8 million
• Sold cap rate: 13.8%
• Median SqFt sold/transaction: 17,400
• Total SqFt sold: 6.8 million 
• Days on market (median): 79

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Memphis Office Market

The Memphis office market is holding steady in early 2025, with a modest uptick in leasing activity and growing interest from large-footprint tenants. While vacancy is still somewhat elevated, demand is gradually shifting toward higher-quality spaces as businesses seek modern amenities and efficiency over size. Landlords are responding with competitive incentives and flexible deal structures to keep pace. As tenant expectations evolve, the market is adapting, balancing caution with bursts of renewed momentum.

Market overview (Cushman & Wakefield Q1 2025)

• Inventory: 27,739,179 SF
• Vacancy rate: 16.6%
• Net absorption: -44,724 SF (YTD)
• Key leases by tenant: BASF Corporation (16,095 SF), Clarice Loggins (12,500 SF), The Collective Blueprint (10,630 SF)
• Largest submarkets: East, Downtown, 385 Corridor

Crexi Insights

Detailed information on recent sales and leasing trends in the Memphis office market is provided by Crexi Insights, as of June 2025.

For Lease (active)

• Asking rate/SqFt (median): $20 per year
• Median SqFt/listing: 1,960 SF
• Days on market: 344
• Total listings on Crexi: 767 spaces

For Sale (active)

• Median asking price: $839,500
• Price/SqFt: $99 
• Asking cap rate: 7.9%
• Days on market: 181
• Total listings on Crexi: 77

Sales Comps (past 12 months)

• Median sold price: $487,500
• Sold price/SqFt: $88
• Total sales volume: $145.1 million
• Sold cap rate: 7.8%
• Median SqFt sold/transaction: 4,965 SF
• Days on market (median): 159

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Memphis Retail Market

Retail real estate in Memphis is adjusting to shifting consumer habits this year, with steady demand balancing out a modest dip in overall occupancy. While net absorption has dipped, vacancy rates remain relatively low, reflecting the market’s underlying stability and tenant resilience. New construction is limited, suggesting a continued focus on optimizing existing retail footprints rather than expanding them. As consumer behavior evolves and retailers adapt, the market is active, with opportunities emerging in well-located, high-traffic areas.

Market overview (Cushman & Wakefield Q1 2025 U.S. Shopping Center MarketBeat)

• Inventory:  37,937,104 SF
• Vacancy rate: 6.3%
• Net absorption: -274,048 SF (YTD)
• Under construction: 24,667 SF

Crexi Insights

Retail lease and sales trends from Crexi Insights (as of June 2025):

For Lease (active)

• Asking rate/SqFt (median): $13 per year
• Median SqFt/listing: 2,498 SF
• Days on market: 383
• Total listings on Crexi: 618 spaces

For Sale (active)

• Median asking price: $907,500
• Price/SqFt: $152
• Asking cap rate: 6.8%
• Days on market: 115
• Total listings on Crexi: 135 

Sales Comps (past 12 months)

• Median sold price: $649,000
• Sold price/SqFt: $88
• Total sales volume: $86.2 million
• Sold cap rate: 8.1%
• Median SqFt sold/transaction: 5,686 SF
• Days on market (median): 226

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Memphis Multifamily Market

Occupancy trends have leveled off across the metro, with renters gravitating toward popular submarkets like Downtown, Cordova/Bartlett, and East Memphis. While rent growth has cooled slightly, especially among Class A properties, this shift reflects broader economic adjustments and renewed affordability for renters. New construction is modest, signaling a cautious but consistent approach to expansion. 

Market overview (CBRE Memphis Multifamily Figures Q3 2024)

• Total housing units: 583,684
• Multi-unit inventory: 128,410 units
• Vacancy rate: 8%
• Average rent per unit: $1,216
• Absorption: -110
• Under construction: 1,840 units
• Submarkets (most active with construction): Downtown Memphis, Cordova/Bartlett, East Memphis

Crexi Insights

Here are the most recent multifamily Insights from Crexi (as of June 2025):

For Sale (active)

• Median asking price: $1.7 million
• Price/SqFt: $88
• Price/Unit: $93,100
• Asking cap rate: 8.5
• Days on market: 135
• Total listings on Crexi: 44

Sales Comps (past 12 months)

• Median sold price: $79,600
• Sold price/SqFt: $33
• Sold price/unit: $52,200
• Total sales volume: $154.9 million
• Sold cap rate: 13.2%
• Total SqFt sold: 3.3 million
• Days on market (median): 97

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Get more in-depth Memphis market data with Crexi Intelligence.