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Market Report

Memphis Office Market Report

2024 Investment Forecast

Recent Resilience Provides a Buffer to
Withstand Emerging Roadblocks in 2024

Metro vacancy among the nation’s least changed since the pandemic. Amid broad office sector turbulence in recent years, Memphis entered 2024 in relative stability. Market vacancy fell in both 2022 and 2023, putting the local rate just 100 basis points above the pre-pandemic figure at the onset of this year. National vacancy, meanwhile, rose by more than 500 basis points during that span, and only five major markets have recorded smaller adjustments than Memphis since 2019. The urban core has been primarily responsible for this resilience, another instance of local momentum that contradicts the national trend. Vacancy in Downtown Memphis ended last year below its respective pre-pandemic mark, and registered as the only urban core among major markets with a sub-7 percent rate. Nevertheless, leasing activity here and across the metro has begun to taper. Fewer than five 10,000-square-foot-plus move-ins were scheduled for 2024 as of late last year, after approximately 15 such commitments took place in 2023. Softer demand will shrink net absorption and create some downward pressure on marketed rents this year.

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