Memphis Retail Market Report

Memphis city center proves resistant to overall softening. Downtown vacancy remained relatively stable last year, while East Memphis, Collierville and Cordova experienced rate compressions of up to 100 basis points. This came as less affluent areas of the metro drove the marketwide rate up 70 basis points last year. Tightening in key submarkets is a positive sign for the metro, which saw population growth and net in-migration improve drastically in the last two years, with both expected to strengthen this year. Downtown’s retail outlook is also favorable after local apartment vacancy fell 350 basis points last year, while offices in the area started 2025 just 20 basis points below record-high occupancy despite two years of net metrowide job losses. Alongside negligible retail construction this year, household growth roughly 75 percent above the long-term average and renewed hiring bode well for the city center. Move-ins slated for this year are led by experiential retailers, grocers and discount brands, with the greatest leasing activity taking place in Midtown, Collierville and Cordova.