Memphis Industrial Figures Q2 2026

The Memphis industrial market recorded approximately 2.0 million sq. ft. of net absorption in Q2 2026. Vacancy declined to 5.6% from 6.2% in Q1 2026 and 7.5% one year ago, while availability fell to 9.8%. Average asking rent rose to $4.75 per sq. ft., up 3.3% quarter-over-quarter and 3.9% year-over-year, reflecting firmer pricing as occupancy continues to improve. The construction pipeline totaled 4.6 million sq. ft. across six projects in Q2 2026, comprised of 3.5 million sq. ft. of build-to-suit development and 1.1 million sq. ft. of speculative product, including the first speculative industrial project to break ground in the market since 2022. Large-block leasing activity remained a defining theme this quarter, underscoring sustained demand for modern logistics space across the region’s key distribution corridors.

The broader U.S. economy entered mid-2026 on solid footing, with GDP growth projected at 2.2% and AI investment supporting business expansion. However, elevated inflation and Treasury yields have created a more challenging financing environment for commercial real estate. For Memphis, the impact has been partially offset by the market’s strategic role as a national logistics hub, which continues to attract large-scale occupiers. Looking ahead, moderating inflation and improved trade flows resulting from easing geopolitical tensions could further support industrial demand across the region.