OFFICE RENTAL MARKET
- $18.322019 Avg. Asking Rent
- 16.64 %2019 Avg. Vacancy Rate
- 60,0002019 Office Completions (Sqft)
- 200,0002020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Memphis was $18.32 per square foot, and the office vacancy rate across the market averaged 16.64 %. During 2019, developers added 60,000 square feet of new office space to the Memphis market inventory. Office developments estimated for delivery during 2020 total 200,000 square feet.
Average Office Asking Rents by Class
2019 Average Office Rent per Square Foot
- Memphis Class A Office Buildings$20.77
- Memphis Class B Office Buildings$18.38
- Memphis Class C Office Buildings$16.93
- TN Class A Office Buildings$31.64
- TN Class B Office Buildings$21.27
- TN Class C Office Buildings$18.63
Memphis, TN Office Asking Rents by Class
Office asking rents vary across the Memphis office market depending on several factors, one of which is property class. While rents for Class A office buildings in Memphis averaged $20.77 per square foot in 2019, Class B office properties garnered average rental rates of $18.38 per square foot. Rental rates for Class C office property in Memphis averaged $16.93 per square foot. On a statewide level, Class B office space rents averaged $21.27 per square foot, while rents for Class A office space across Tennessee averaged $31.64 per square foot. On average, Class C office properties in Tennessee commanded rents of $18.63 per square foot.
2019 OFFICE VACANCY RATES
| Submarket | Asking Rents | Vacancy Rates |
|---|
| Memphis - Poplar Corridor | $23.75 | 6.58 % |
| Memphis - East | $18.61 | 20.30 % |
| Memphis - Downtown | $18.40 | 10.66 % |
| Memphis - SR 385 Corridor | $17.84 | 23.55 % |
| Memphis - Midtown | $16.64 | 13.77 % |
| Memphis - Northeast | $16.39 | 11.98 % |
- The lowest office vacancy rate in 2019 in Memphis was 6.58 % in the Memphis - Poplar Corridor submarket, where asking rents averaged $23.75.
- The highest office vacancy rate in 2019 in Memphis was 23.55 % in the Memphis - SR 385 Corridor submarket, where asking rents averaged $17.84.
OFFICE CONSTRUCTION IN MEMPHIS, TNMemphis, TN Total Sqft completed in 201960,000
- Memphis, TN Total Sqft under construction in 2020 200,000
10 Largest Office Buildings in Memphis| Building name | Address | Total Sqft | Year built |
|---|
| FedEx World Headquarters | 3610 Hacks Cross Road, 38125 | 1,100,000 | 2000 |
| Crosstown Concourse | 495 North Watkins Street, 38104 | 1,000,000 | 2017 |
| Clark Tower | 5100 Poplar Avenue, 38117 | 668,505 | 1973 |
| 4001 Airways Blvd | 4001 Airways Blvd, 38116 | 521,286 | 1985 |
| 165 Madison Avenue | 165 Madison Avenue, 38103 | 509,000 | 1966 |
| 150 Peabody Place | 150 Peabody Place, 38103 | 400,000 | 2017 |
| One Commerce Square | 40 South Main Street, 38103 | 399,350 | 1972 |
| Audubon Woods Business Campus | 755 Crossover Lane, 38117 | 360,000 | 1981 |
| Crescent Center | 6075 Poplar Avenue, 38119 | 337,916 | 1986 |
| Raymond James Tower | 50 North Front Street, 38103 | 334,668 | 1984 |
Largest Office Properties Recently Completed in Memphis| Office building | Address | Sqft | Completed |
|---|
| Orion Federal Credit Union Headquarters | 400 Monroe Avenue, 38103 | 75,000 | 2019 |
| Crosstown Concourse | 495 North Watkins Street, 38104 | 1,000,000 | 2017 |
| 150 Peabody Place | 150 Peabody Place, 38103 | 400,000 | 2017 |
| 949 South Shady Grove Road | 949 South Shady Grove Road, 38120 | 155,000 | 2017 |
| International Place IV | 1740 International Drive, 38197 | 241,177 | 2014 |
| 3495 Hacks Cross Road | 3495 Hacks Cross Road, 38125 | 113,000 | 2013 |
| Triad Centre III | 6070 Poplar Avenue, 38119 | 148,810 | 2009 |
| Medtronic Campus - 1770 Pyramid Place | 1770 Pyramid Place, 38132 | 176,532 | 2008 |
| Ridgeway Center - 999 Shady Grove | 999 South Shady Grove Road, 38120 | 155,000 | 2008 |
| Southwind Office Center - 3251 Players Club Pkwy | 3251 Players Club Pkwy, 38125 | 61,267 | 2008 |
