Memphis Office Market Report

New supply tapers as demand thrives along U.S. Route 72. Although Memphis’ central business district is among the least vacant among major metros, recent leasing activity continues to shift east toward the 385 Corridor, and East and Northeast Memphis. East Memphis, holding the metro’s largest inventory, remains the focal point for leasing activity, averaging about 3,000 square feet per signing. The area is also home to the University of Memphis, streamlining talent supply for local businesses. In the 385 Corridor, Class B/C vacancies remain in single digits, with Class B leasing signaling demand for mid-tier assets in particular. Finance, insurance, and professional service firms looking in the area may continue to gravitate closer to Route 72, which provides access to the 385 Corridor and central Memphis. Route 72’s structural stability and recent momentum point to further vacancy compression, with Class B assets leading the trend.