{"id":1004757136,"date":"2025-05-26T06:45:06","date_gmt":"2025-05-26T14:45:06","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004757136"},"modified":"2025-06-02T06:02:15","modified_gmt":"2025-06-02T14:02:15","slug":"memphis-industrial-development-outshines-most-us-markets","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/","title":{"rendered":"Memphis Industrial Development Outshines Most US Markets"},"content":{"rendered":"\n

With roughly 12.5 million square feet of industrial space underway, representing 4.2 percent of total stock, Memphis’s construction pipeline in early 2025 was one of the largest among major U.S. markets.<\/p>\n\n\n\n

Fueled by landmark developments like Ford\u2019s BlueOval City, the metro is solidifying its status as a key logistics and manufacturing hub in the Southeast, while also seeing heightened investor demand and competitive pricing.<\/p>\n\n\n\n

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READ ALSO:<\/strong> 2024 Industrial Net Lease Sales and Cap Rates<\/a><\/p>\n\n\n\n

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\"Ford's<\/a>
Ford Motor Co. is building a $5.2 billion EV plant on a mega-site. Ford’s BlueOval City is a 6-square-mile site in Stanton, Tenn., dedicated to EV innovation and manufacturing. Image courtesy of Ford Motor Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

As of March, Memphis had 12.5 million square feet of industrial space underway, accounting for 4.2 percent of the existing inventory\u2014the highest share among all significant U.S. markets. The metro\u2019s active pipeline consisted of just four large-scale developments.<\/p>\n\n\n\n

Only Phoenix outpaced Memphis in terms of total space under construction, with 15.9 million square feet. Other comparable markets, including Indianapolis (3.8 million square feet), New Jersey (6.3 million square feet) and Chicago (6.9 million square feet), trailed behind.<\/p>\n\n\n

\n
\"Rendering<\/a>
Rendering of the Magna BlueOval City battery enclosures plant in Stanton, Tenn. The Canada-based company plans to build two facilities at Ford\u2019s supplier park in Stanton and a third plant in Lawrenceburg, Tenn. Image courtesy of Magna International <\/em><\/figcaption><\/figure><\/div>\n\n\n

The region\u2019s growth is anchored by BlueOval City, Ford Motor Co.\u2019s nearly 6-square-mile electric vehicle campus near Stanton, Tenn. The project is one of the largest automotive investments in U.S.<\/a> history, expected to produce 500,000 electric pickup trucks annually. Ford\u2019s joint venture with SK Innovation includes a 4.2 million-square-foot battery plant next to the EV facility. Combined, the two sites represent an $11.4 billion investment and are anticipated to create 11,000 jobs. <\/p>\n\n\n\n

Auto parts manufacturer Magna International is also expanding<\/a> in support of the new ecosystem, committing nearly $800 million to three new facilities. Two of them will be integrated within BlueOval City, while the third will be located in Lawrenceburg, Tenn.<\/p>\n\n\n\n

Sales volume nearly doubles year-over-year<\/h2>\n\n\n\n

Memphis’ industrial investment volume <\/a>surged during the first quarter, recording $182 million in sales through March. The metro saw 2.8 million square feet change hands across eight properties, nearly doubling the $72.2 million volume recorded during the same period last year.<\/p>\n\n\n

\n
\"Two
The two industrial properties that changed hands in Olive Branch are Stateline Building K, of 347,604 square feet, and the 241,994-square-foot Crossroads Building L. Both are fully leased to Motivational Fulfillment & Logistics Services and American Musical Supply. Image courtesy of JLL<\/em><\/figcaption><\/figure><\/div>\n\n\n

At $75.81 per square foot, Memphis remained one of the most affordable major industrial markets, according to CommercialEdge. Only Kansas City posted a similar average ($74.85 per square foot), while markets such as New Jersey ($255.63) and Phoenix ($176) far exceeded the $125 national average.<\/p>\n\n\n\n

Sealy & Co. expanded its Memphis-area footprint<\/a> with the acquisition of a two-building, 589,598-square-foot portfolio in Southaven and Olive Branch, Miss., both in the DeSoto County submarket.<\/p>\n\n\n\n

In one of the largest deals of the quarter, Robinson Weeks Partners acquired two facilities totaling 831,974 square feet<\/a> in Olive Branch, Miss., part of the 10-building Legacy Park campus developed by Hillwood.<\/p>\n\n\n\n

Vacancy inches up, but rents stay competitive<\/h2>\n\n\n
\n
\"Exterior<\/a>
The 383,032-square-foot rear-load building at 11384 Progress Way has 32-foot clear heights. Image courtesy of Robinson Weeks Partners<\/em><\/figcaption><\/figure><\/div>\n\n\n

The metro\u2019s vacancy rate reached 9.2 percent in March, according to CommercialEdge, up from previous quarters and above the 8.5 percent national average.<\/p>\n\n\n\n

Memphis continues to offer some of the most competitive industrial rents in the country. In-place rents averaged $4.17 per square foot, while new leases signed at $4.67 per square foot\u2014both well below national levels. For comparison, Miami recorded the South\u2019s highest rents, with in-place pricing at $12.54 per square foot.<\/p>\n\n\n\n

The region\u2019s low cost of occupancy and strong infrastructure continue to support tenant interest, particularly from logistics and automotive-related users.<\/p>\n","protected":false},"excerpt":{"rendered":"

This Tennessee metro area has emerged as a national hotspot, according to CommercialEdge.<\/p>\n","protected":false},"author":3014,"featured_media":1004710090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,21748,21783,52420,32781],"tags":[51047,50674],"class_list":["post-1004757136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-industrial","category-investment","category-market-updates","category-southeast","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nMemphis Industrial Development Outshines Most US Markets - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Memphis emerged as a national industrial hotspot, driven by elevated construction activity, according to CommercialEdge.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Memphis Industrial Development Outshines Most US Markets\" \/>\n<meta property=\"og:description\" content=\"Memphis emerged as a national industrial hotspot, driven by elevated construction activity, according to CommercialEdge.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-26T14:45:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-02T14:02:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/Blue-Oval-City.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Firtea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/\",\"name\":\"Memphis Industrial Development Outshines Most US Markets - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/Blue-Oval-City-e1754562353327.jpg\",\"datePublished\":\"2025-05-26T14:45:06+00:00\",\"dateModified\":\"2025-06-02T14:02:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/a0c04b9de1387474e28c9ebdb0444e59\"},\"description\":\"Memphis emerged as a national industrial hotspot, driven by elevated construction activity, according to CommercialEdge.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/memphis-industrial-development-outshines-most-us-markets\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/Blue-Oval-City-e1754562353327.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/Blue-Oval-City-e1754562353327.jpg\",\"width\":800,\"height\":600,\"caption\":\"Ford's BlueOval City is a six-acre site in Stanton, Tenn., dedicated to EV innovation and manufacturing. 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