Memphis Retail Market Report
Population Growth Validates Supply Additions;
Downtown Foot Traffic Returns
Local inventory expands by the fastest pace since 2016. Bolstered by ongoing net in-migration, Memphis’ population will expand for the third consecutive year in 2023, a favorable reversal of previous trends. If sustainable, this could foreshadow rising retailer space demand long-term and may validate the metro’s sudden inventory expansion, with 2023 claiming the fastest pace of total stock growth in seven years. Some built-to-suit projects already reflect the long-term expected population increase, including a 160,000-square-foot Kroger Marketplace slated to come online in Arlington this year. However, macroeconomic headwinds and looming fears of a potential near-term downturn may curb some leasing activity this year, contributing to Memphis recording the second-largest vacancy increase among major U.S. markets.