Memphis Office Market Report

Recent bumps in the road mitigated by negligible development pipeline. Some of the occupancy gains made since 2021 were undone last year, yet the market still entered 2025 with a vacancy rate 40 basis points below its 2014-2019 average of 13.3 percent. Availability was particularly tight to start the year downtown, where the reading of 6.7 percent was the lowest among major U.S. metro central business districts. Despite this, traditional office development here is intermittent; a 300,000-square-foot proposal is the only notable project in the pipeline. This year’s completions are instead condensed slightly north with the office component of the Uptown Snuff District project. The lack of major deliveries elsewhere may help operations stabilize, as vacancy climbed last year in the majority of Memphis submarkets. A higher prevalence of Class B and C office space here than found nationally, at three quarters of local inventory, reiterates the market’s reliance on local and regional tenants who tend to lease smaller, economical floorplans, which are less common in recent construction trends.