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Market Report

Tennessee Industrial Investment Forecast

2019 Outlook

Shipping Advantages of Memphis Create Buyer Interest Amid E-Commerce Era

 

 

Infrastructure improvements demonstrate distribution importance. The city’s unique distribution advantages drive the Memphis industrial sector. The “Four R’s” — runway, rail, river, and road — contribute to the metro’s intermodal distribution capabilities. The city is investing in solidifying its position as a national nucleus for cargo transportation, demonstrated recently by the railroad expansion at the Memphis International Port and the completion of the Memphis Beltway, Interstate 269. FedEx’s largest distribution hub, located at the Memphis International Airport, is a catalyst for additional area demand. Warehouse and distribution space in the vicinity is desirable as e-commerce companies are realizing the impact close proximity to FedEx has on their supply chains. The positive market factors will bolster absorption again this year, as demand continues to outpace supply, helping vacancy tighten 50 basis points. The area’s high absorption levels will keep rental rates on the rise in 2019.

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