Market Mondays: Memphis, TN - January 13, 2025

MARKET OVERVIEW
Memphis, TN

Why Memphis?

The current metro area population of Memphis in 2025 is 1,188,000, a 0.76% increase from 2024, while Memphis proper has a population of just over 633,000 people.

Memphis, known as America’s Distribution Center, is a key logistics hub connecting the eastern and western U.S. With over 4.4 million metric tons of cargo and 4.3 million passengers handled annually at its airport, and 700 trucking companies passing through, the city is known for connectivity. It's one of only four U.S. cities where five Class I railroads converge and serves as an economic hub for Tennessee, Arkansas, and Mississippi. The recent $1.5 billion FedEx SuperHub expansion further enhances its global commerce advantage.

Over 40% of the US population is within a one-day drive, and 75% of the US population is within a two-day drive.

It’s not only trucks and cars that can get around Memphis. It’s important to remember that the Greater Memphis area was built around its robust railroad network. Memphis features the 3rd-largest rail center in the U.S. after Chicago and St. Louis.

It is one of only four U.S. cities served by five Class I railroads, providing single-system shipment to all 48 contiguous states as well as Alaska, Mexico, and Canada. With rail access available 24/7 at nine intermodal yards, Memphis handles over 2 million TEUs annually, supported by five wide-span cranes.

Shipments can reach 45 states, Canada, and Mexico within two days, establishing Memphis as a premier logistics hub.

Top Companies to Know in Memphis

FedEx
Nucor
Sylvamo
Hyosung Hico
AutoZone
International Paper
First Horizon National Corporation
McKesson
Kroger
Nike

Check out this link for a list of major employers

IOS Market Trends

Memphis’ traditional industrial market remains stable, with little to no new construction expected due to the availability of existing properties. Persistent vacancy rates may decline in future quarters as new supply remains limited. In the IOS market, the Southwest and Southeast submarkets have experienced the strongest demand since 2022. Industrial activity in Memphis is largely driven by logistics, particularly 3PLs, leveraging the region's connectivity. Demand for IOS is well-positioned as the area has needs for truck and container storage, as well as overflow space for local manufacturing.

CLOSED TRANSACTIONS
Acquisitions and Dispositions

ACQUISITION: In the Fall, Alterra Property Group acquired a recently renovated IOS Terminal on 5.9 acres in Memphis, TN. Preston Thomas and Elliot Embry represented the seller. Parker Pearson lead the acquisition for Alterra. For leasing information, contact Ben Ricketts, SIOR, who represented the buyer.

ACQUISITION: In September, a private investor from Colorado acquired a 7.6-acre industrial outdoor storage property at 4730 Pleasant Run Road in Memphis, TN, for $4.54 million. Fully leased to Freight Ninja, a managed truck parking operator, the property was brokered by Northmarq's Brandon Duff and Mack Wolfgram.

ACQUISITION/REDEVELOPMENT: Memphis was selected as Riggy’s first location outside of Texas. DryPort Capital completed their $5.3 Million project at 5178 Citation Drive late Spring 2024.

MORE MEMPHIS YARDDOGS: CBRE, Cushman & Wakefield, Commercial Advisors, Colliers, Marcus & Millichap

Know of other great Memphis IOS acquisitions or YardDogs that we missed?

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