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Regional Summaries

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Memphis, TN

Apartment
New apartment development peaked for this cycle in 2015 in the 80,000-unit Memphis apartment market, but occupancy was not negatively affected. The 1,226 apartments that completed construction during the year were nearly balanced by net absorption, and the vacancy rate increased just 10 basis points over the year to 8.3%. It was up 30 during the fourth quarter. Rent gains have been moderate and consistent in metro Memphis, and 2015 was no exception. The average asking rent increased 2.5% to $763 per month, with the average effective rent up 2.7% to $721 per month. The fourth quarter gains were 0.4% and 0.5%, respectively. VIEW APARTMENT LISTINGS >
Industrial
Net absorption totaled 2.3 million square feet in 2015 in the 109.3-million-square-foot Memphis warehouse/distribution market, with 823,000 square feet coming in the fourth quarter. The vacancy rate fell 210 basis points over the year and 70 during the quarter to 14.0%. In 2015, the average asking rent increased 2.3% to $2.66 psf, with the average effective rent up 2.1% to $2.38 psf. In the fourth quarter, the asking average was up 0.8%, but the effective average rose just 0.4%, as concessions expanded. There was no further change in rents in January 2016. The small 9.4-million-square-foot Memphis Flex/R&D market also improved in 2015, with no new supply, 125,000 square feet of net absorption, and a vacancy rate that fell 130 basis points over the year to 14.2%. The rate fell 20 basis points in the fourth quarter and another 10 in January 2016. The average asking rent increased 0.9% in 2015 to just $5.58 psf, with the average effective rent up 1.2% to $4.95 psf. The fourth quarter gains were 0.5% and 0.6%, respectively. VIEW INDUSTRIAL LISTINGS >
Office
The positive year still left the vacancy rate in the 18.9-million-square-foot Memphis general purpose, multi-tenant office market at a very high 23.0% at the end of 2015. That was down 60 basis points over the year and 20 during the fourth quarter. There was little occupancy change in January 2016. Rent gains remain modest. In 2015, both the average asking rent and the average effective rent increased 1.4% to $18.72 psf and $15.04 psf. The fourth quarter gain was 0.4% by both measures, followed by an increase of 0.1% for each in January 2016. VIEW OFFICE LISTINGS >
Retail
The 19.6-million-square-foot Memphis community-neighborhood shopping center market was quiet again in 2015. This market averaged 342,800 square feet of new supply per year from 1991 to 2008, but has seen little since. The 2015 total was one 10,000-square-foot expansion, and with 66,000 square feet of net absorption, the vacancy rate was down 30 basis points over the year to 11.2%. It was up 10 basis points in the fourth quarter. Rents are low and rent gains limited here. In 2015, the average asking rent increased 0.7% to $13.87 psf, with the average effective rent up 0.9% to $12.24 psf. The fourth quarter increase was 0.1% by both measures. The market remained quiet in January 2016, with flat occupancy and rents edging up by 0.1% asking and 0.2% effective. VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

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