Memphis Office Figures Report Q1 2026

The Memphis office market continues to navigate a drawn‑out stabilization phase, defined by elevated vacancy, uneven tenant demand, and a gradual, transaction‑dependent recovery from pandemic‑era disruption. As of Q1 2026, the total market direct vacancy rate improved modestly year-over-year to 15.7%, down from 16.5% in Q1 2025. This tightening has been driven primarily by limited tenant give‑backs, space consolidations, and improved retention, as opposed to sustained expansionary leasing activity, underscoring the continued lack of strong net new demand. Asking rental rates have remained largely flat, with landlords emphasizing concessions, renewal flexibility, and tenant improvements over rate growth to preserve occupancy amid a competitive leasing environment.