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Market Report

Memphis Office Market Report

2Q 2023

Steady Occupancy and Tight Conditions Downtown
Draw Developers to Revitalize Vintage Assets

Local office market demonstrates commendable stability. Entering April with availability at just 12.2 percent metrowide, Memphis was one of eight major markets in the U.S. to report an annual decline in vacancy; and one of only three in this cohort in which the current metric ranks lower than the trailing decade-long average. Contrasting national trends, tenants have been actively pursuing leases downtown and in adjacent zones, driving CBD availability down to 7.3 percent entering the second quarter. Solid space demand can be credited to Memphis’ concentration of logistics companies, which account for nearly 28 percent of local employment. This industry has experienced strong tailwinds in recent years, incentivizing legal firms and other traditional office-using employers serving the segment to maintain floor plans in this locale. 
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