Memphis Industrial Market Report

Inland advantages underpin industrial comeback. Memphis may be on the cusp of an industrial resurgence, as supply-chain shifts and industrial policy structurally reshape freight and manufacturing networks in favor of inland hubs. Few metros are better positioned, as Memphis hosts five Class I railroads and Memphis International Airport (MEM), the busiest cargo airport in North America. Demand is already evident, as large-bay leasing surged more than 60 percent over the year ended in March, topping 20 million square feet and tightening vacancy around MEM in the southeast and southwest. Notably, manufacturing vacancy compressed more than 200 basis points over the past year, with Ford’s BlueOval City and Amplify’s battery cell plant anchoring a growing advanced manufacturing pipeline. This activity should also attract small-bay tenants serving in support and supplier roles. At the same time, job growth from these major investments and Memphis’ low cost of living could help revive domestic in-migration and further aid the small-bay segment where leasing has lagged.