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Memphis, TN

Apartment
The 80,452-unit Memphis apartment market had its biggest year for net absorption since 1998 in 2016, according to Reis, at 1,873 units. Just 568 units completed construction over the year, and the vacancy rate fell 170 basis points to 6.8%, the lowest year-end rate since 2000. The rate edged up 20 basis points in the fourth quarter as the bulk of the year’s new supply completed construction. The vacancy rate edged down to 6.7% in January 2017. Rent gains remain moderate. In 2016, the average asking rent increased 1.9% to $778 per month, with the average effective rent up 2.2% to $737 per month, including gains of 0.7% and 0.5%, respectively, during the fourth quarter when new supply came online. Overall rents increased by 0.4% asking and 0.5% effective in January 2017. VIEW APARTMENT LISTINGS >
Industrial
The 110.8-million-square-foot Memphis warehouse/distribution market was not able to fully offset the 1.5 million square feet of new space added during the first quarter and ended 2016 with just 913,000 square feet of net absorption. The vacancy rate ended 2016 at 14.6%, up 40 basis points over the year but down 30 during the fourth quarter alone. The average asking rent was up 0.7% in the fourth quarter and up 1.9% over the year to $2.71 psf, with the effective average up 0.8% over the quarter and up 2.1% over the year to $2.43 psf. The year 2017 got off to a slow start with 125,000 square feet of negative net absorption in January. Both the asking and effective averages were unchanged in January 2017. The small 9.4-million-square-foot Memphis Flex/R&D market remained quiet in 2016. The vacancy rate increased 20 basis points to 14.4% on 20,000 square feet of negative net absorption, the average asking rent was up 0.9% to $5.63 psf, and the average effective rent rose 0.8% to $4.99 psf. VIEW INDUSTRIAL LISTINGS >
Office
The 18.9-million-square-foot Memphis general purpose, multi-tenant office market picked up after mid-year and finished 2016 with 91,000 square feet of positive net absorption. With 47,000 square feet of new supply during the year, the vacancy rate edged down 40 basis points to 22.6%. The fourth quarter decrease was 20 basis points. Rents edged up 0.9% by both measures during 2016, the average asking rent to $18.89 psf and the average effective rent to $15.17 psf. The fourth quarter gain was 0.1% by both measures. In January 2017, the vacancy rate edged up 10 basis points, and the average asking rent increased 0.1%. VIEW OFFICE LISTINGS >
Retail
The 19.7-million-square-foot Memphis community-neighborhood shopping center market was weak in 2016 and has yet to really begin recovering from the Great Recession. The vacancy rate was 12.3% at year-end, up 40 basis points over the year on 54,000 square feet of negative net absorption but down 20 basis points in the fourth quarter. The average asking rent increased 0.5% during 2016 to $13.94 psf, with the average effective rent up 0.6% to $12.31 psf. All of that increase, and then some, is accounted for by fourth quarter gains of 0.6% and 0.7%, respectively. January is typically a down time for retailing, and 2017 got off to a weak start with 7,000 square feet of negative net absorption and rents slipping a penny by both measures. VIEW RETAIL LISTINGS >

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Source: Data provided by Reis, inc.

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