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Memphis

2023 Q4 Multifamily Market Overview

 

Market Highlights

Known as the “Home of the Blues & Birthplace of Rock ‘n’ Roll”, Memphis is a vibrant market full of history, entertainment, and industry. Memphis is the 2nd largest city in Tennessee with an MSA population of 1,332,305. Three Fortune 500 companies are headquartered in Memphis, including FedEx, AutoZone, and International Paper. FedEx is the area’s largest single employer, with 35,000 local jobs and a massive 89-acre, 1.1 million SF headquarters. Downtown Memphis is highlighted by First Horizon Bank’s headquarters and The University of Tennessee Health Science Center. The government and school system also account for over 50,000 jobs. Several healthcare systems including Methodist Le Bonheur, Baptist Memorial, St. Jude’s, Saint Francis, and Regional One provide over 3,400 hospital beds to residents. Other household employers include Walmart, Nike, Kroger, and Cigna. The University of Memphis is one of Tennessee’s highest-ranking public universities, and Memphis is also home to the NBA franchise Memphis Grizzlies. Two of Memphis’ suburban neighborhoods (Germantown and Collierville) are among the top places to live in the state. The apartment market is composed of 501 properties and over 100,000 units.

#1
Places Where $100,000 Goes Furthest (SmartAsset)
#2
Largest MSA in TN
#4
Best Counties for Young Professionals (TN) (Niche.com)

Multifamily Highlights

Apartment Market Overview:

501
Apartments (50+ units)
104,504
Total Units (50+ units)
$1,080
Avg. Asking Rent
0.5%
Rent Growth (Previous 12 Months)
86.9%
Occupancy

12-Month Sales:

$296M
12-month Sales Volume ($)
5,849
12-month Sales (Units)
25
12-month Sales (# of transactions)

Development Pipeline:

18
Properties Under Construction
3,316
Units Under Construction

Economic Development

Memphis has seen a combination of large-scale investments by its anchor employers as well as multiple job announcements across industries. Ford is under construction on a $5.6 billion, 3,600 acre plant (known as BlueOval City) in Stanton (50 mi NE of Memphis) that is anticipated to employ 5,800. The site is expected to begin production in 2025 with the capability to build 500,000 electric vehicles annually. Magna, one of the world’s largest automotive suppliers, is the first and largest supplier to join BlueOval City, announcing plans to invest $790 million and create 1,300 new jobs across Tennessee.

St. Jude is in the midst of implementing its Six-Year Strategic Plan (2022-27), recently pledging $1.4 billion to expand the campus and hire 900 additional employees. The Six-Year plan calls for a total of $12.9 billion in investment.

Manufacturer K.T.G. is moving forward with a $21 million expansion to its Memphis operation. In May 2023, Memphis Record Pressing completed a $30 million expansion, making it the largest vinyl record manufacturer in North America. Retail giant Amazon recently completed two new facilities. A $200 million, 855,000 SF distribution center in Frayser/Raleigh will employ 1,000, and a fulfillment center in Marshall County should employ several hundred. In the Spring of 2022, Walmart opened a 1,000,000+ SF fulfillment center in Olive Branch that should employ 250 people. Medical device maker Medtronic is looking to build a $133 million, 1 million SF manufacturing and logistics center that would employ 265 people. In December 2022, Southland Casino Hotel completed a $320 million expansion in West Memphis, AR.

Demographics

Total Population
1,332,305
Median Household Income
$56,926
Unemployment Rate (Aug 2023)
4.40%

Major Employers

  1. Federal, State, County, & City Government

    36,300 jobs  | Learn More

  2. FedEx Corporation HQ

    35,000 jobs  | Learn More

  3. Shelby & DeSoto County Schools

    15,590 jobs  | Learn More

  4. Methodist Le Bonheur Healthcare

    11,415 jobs / 1,683 beds  | Learn More

  5. Baptist Memorial Health Care

    8,019 jobs / 706 beds  | Learn More

  6. NSA Mid-South (Millington)

    6,500 jobs  | Learn More

  7. Walmart (Incl. Fulfillment Center)

    6,000 jobs  | Learn More

  8. St. Jude's Children's Research Hospital

    5,769 jobs / 73 beds  | Learn More

  9. Nike

    5,100 jobs  | Learn More

  10. UT Health Science Center

    4,600 jobs  | Learn More

  11. DHL Supply Chain

    4,395 jobs  | Learn More

  12. Saint Francis Healthcare

    4,000 jobs / 675 beds  | Learn More

  13. Smith & Nephew

    2,865 jobs  | Learn More

  14. University of Memphis

    2,742 jobs / 21,917 enrollment  | Learn More

  15. Memphis Light, Gas and Water (MLGW)

    2,700 jobs  | Learn More

  16. Kroger (Incl. Divisional Office)

    2,609 jobs  | Learn More

  17. Regional One Health

    2,608 jobs / 328 beds  | Learn More

  18. First Horizon Bank

    2,600 jobs  | Learn More

  19. Autozone HQ

    2,500 jobs  | Learn More

  20. International Paper HQ

    2,400 jobs  | Learn More

  21. Lt. Col. Luke Weathers, JR. VA Medical Center

    2,297 jobs / 196 beds  | Learn More

  22. Cigna Healthcare

    2,100 jobs  | Learn More


Other Demand Drivers

  1. FedExForum

    Memphis Grizzlies & UofM Basketball; capacity of 18,400  | Learn More

  2. Wolfchase Galleria

    1,152,000SF; Macy's, JCPenney, Dillard's  | Learn More

  3. Memphis International Airport

    #2 Top Cargo Airports; 4.35M passengers in 2022  | Learn More

  4. Germantown & Collierville

    Top 10 Schools & Richest Cities (TN)  | Learn More

  5. Rhodes College

    2,000 students  | Learn More

  6. Christian Brothers University

    1,253 students  | Learn More

  7. Graceland

    Most Popular Museum in the U.S.  | Learn More

  8. National Civil Rights Museum

    Over 1 million visitors  | Learn More

Featured Properties

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Our Deal Team

Nick Nail
Broker
Nick Nail
Broker
Phone: (901) 251-2000

Nick is originally from Senatobia, MS and attended Christian Brothers University where he studied Accounting. He has been a Broker with TKC since 2016 and loves getting to see the growth over economically diverse markets and the challenges that accompany being a Broker.

Will Beasley
Broker
Will Beasley
Broker
Phone: 615-428-5064

Will is from Nashville, TN and attended the University of Mississippi. He loves being able to connect and build relationships with clients on both the buyer or seller side.

Val Smith
Broker
Val Smith
Broker
Phone: 901-552-6181

Val grew up in Memphis, TN and attended the University of Alabama where he studied Political Science and History. Val has been interested in real estate from a young age due to his family’s background in the industry, and has loved building his career with TKC.

Sources & Comments

1. Memphis, TN-MS-AR Metropolitan Statistical Area consists of 9 counties, according to Office of Management and Budget: (1) Crittenden AR (2) Benton MS (3) DeSoto MS (4) Marshall MS (5) Tate MS (6) Tunica MS (7) Fayette TN (8) Shelby TN (9) Tipton

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) YardiMatrix (3) RentCafe.com (4) CoStar (5) rcanalytics.com (6) www.bls.gov (7) https://www.bizjournals.com/memphis

3. Sales Comps are from 10/1/22 – 9/30/23

4. Development Pipeline as of 10/18/2023

5. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy

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