Market Report
Memphis Retail Market Report
3Q 2026
Smaller-Format Leasing Momentum Contrasts with Large-Store Closures
Big-box vacancies may linger. Recent vacancy pressure has largely stemmed from a few large closures, especially among furniture stores facing softer discretionary spending and higher costs. Move-outs by Ashley Furniture and Mid-South Furniture contributed to a roughly 50-basis-point annual rise in vacancy at properties over 20,000 square feet, reaching roughly 6 percent in June. IKEA’s 270,000-square-foot Cordova closure will increase the strain. These closures come amid softer big-box demand, with leasing instead led by daily-needs and discount retailers seeking smaller footprints. Some larger spaces may require repositioning or subdivision to align with current tenant needs.
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