CBRE

FIGURES|MEMPHISINDUSTRIAL|Q42025

Memphisindustrialmarketendstheyear

withlowervacancyandsteadyrentalrates

6.4%

DirectVacancyRate

4.8M

SFNetAbsorption

3.4M

SFUnderConstruction

Note:Arrowsindicatechangefrompreviousquarter.

KEYTAKEAWAYS

-Directvacancyfellto6.4%inthefourthquarter,drivenby4.8millionsq.ft.ofpositivenetabsorptionafterlaggingearlyintheyear.

-Overallavailabilityinthemarkettightenedalongsidevacancy,withtotalavailabilityat10.3%,downfrom12.0%ayearago.

-DespiteasofterlabormarketandGDPgrowthprojectedat2.0%for2026,Memphisindustrialfundamentalsandtenantactivitypointtocontinuedmarketstability.

TheMemphisindustrialmarketclosedQ42025withnotableimprovementinfundamentals.Directvacancyrecorded6.4%,downfrom7.8%inthepriorquarter,supportedbystrongnetabsorptionof4.8millionsq.ft.Thismarksasharpreversalfromnegativeabsorptionearlierintheyear.AmajordriverwasUSPSoccupying922,500sq.ft.atMemphisOaksI,whileCTDI’s261,281sq.ft.departureatSouthparkDistributionCenterpartiallyoffsetgains.Averageaskingrentsheldsteadyat$4.63persq.ft.,reflectingminimalmovementcomparedtoprioryears.ActivitywasconcentratedintheSoutheastandDeSotoCountysubmarkets,whichaccountedformostofthequarter’spositiveabsorptionandleasingmomentum.

$4.63

NNN/LeaseRate

0

SFConstructionDeliveries

FIGURE1:Deliveries,Absorption&VacancyRate

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

-2,000,000

-4,000,000

20152016201720182019202020212022202320242025

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Deliveries(sq.ft.)Absorption(sq.ft.)VacancyRateAvailabilityRate

Source:CBREResearch,Q42025

1CBRERESEARCH?2025CBRE,INC.

FIGURES|MEMPHISINDUSTRIAL|Q42025

2CBRERESEARCH?2025CBRE,INC.

Direct

Vacancy

(%)

8.4%

BuildingSF

74,371,246

AvailabilityRate(%)

12.7%

Submarket

FIGURE2:MarketStatistics

Avg

Asking

LeaseRate

($)

Under

Construction

Q42025

Net

Absorption

(SF)

YTD2025

Net

Absorption

(SF)

$4.5001,851,1501,315,357

DesotoCounty

9.2%

1.2%

1.8%

0

0

0

1,851,150

0

0

1,321,832(4,600)

(1,875)

13.3%

7.5%

1.8%

$4.46

$8.18

$12.45

67,177,526

6,636,787

556,933

BulkWarehouse

StandardDistribution

ServiceCenter

FayetteCounty8,170,6230.0%$-227,5000956,6670.0%

0.0%

0.0%

0.0%

0

0

0

0

227,500

0

956,667

0

0

0.0%

0.0%

0.0%

$-

$-

$-

6,927,411

1,191,312

51,900

BulkWarehouse

StandardDistribution

ServiceCenter

MarshallCounty22,044,38714.1%$4.852,933,645068,64722.0%

22.6%

9.2%

6.2%

(63,953)

138,000(5,400)

2,933,645

0

0

0

0

0

14.7%

0.0%

6.2%

$4.84$-

$9.56

21,073,516

883,786

87,085

BulkWarehouse

StandardDistribution

ServiceCenter

Northeast14,844,0372.8%$8.89209,580(12,308)(122,657)3.7%

BulkWarehouse

StandardDistribution

ServiceCenter

3,750,903

8,591,545

2,501,589

0.4%

3.7%

3.2%

$9.00

$8.59

$9.82

0

209,580

0

0

(13,600)

1,292

0

(120,750)

(1,907)

0.4%

5.0%

4.6%

Source:CBREResearch,Q42025

Q42025Net

Absorption

(SF)

(SF)

2,771,882

BuildingSF

108,955,239

Direct

Vacancy

(%)

6.0%

Avg

Asking

LeaseRate

($)

YTD2025

Net

Absorption

Under

Construction

AvailabilityRate(%)

1,684,60211.7%

$4.610

Submarket

Southeast

6.0%

6.0%

6.9%

78,807,713

26,764,443

3,383,083

0

0

0

1,427,001(209,907)

467,508

12.2%

10.2%

12.0%

$4.54

$4.47

$7.30

BulkWarehouse

StandardDistribution

ServiceCenter

2,449,787331,274(9,179)

Northwest28,622,4034.4%$4.24018,168(193,140)5.4%

0

18,168

0

4.5%

4.2%

2.3%

19,769,927

8,328,405

524,071

0

0

0

5.2%

6.1%

2.3%

$3.75

$5.80

$7.00

BulkWarehouse

StandardDistribution

ServiceCenter

(121,036)(86,681)

14,577

Southwest45,517,5493.7%$3.880123,193854,0454.4%

0

0

0

2.6%

5.4%

11.3%

19,904,927

24,026,042

1,586,580

2.9%

4.1%

7.8%

11,250

111,943

0

$3.08

$3.86

$8.77

BulkWarehouse

StandardDistribution

ServiceCenter

1,219,258(359,828) (5,385)

MemphisMSA302,525,4846.4%$4.633,370,7254,752,0854,563,52110.3%

BulkWarehouse

StandardDistribution

ServiceCenter

217,411,923

76,422,320

8,691,241

7.1%

4.4%

5.3%

$4.52

$5.02

$8.20

2,933,645

437,080

0

4,312,187

447,785

(7,887)

4,739,769

(643,766)

467,518

11.4%

7.3%

8.4%

FIGURES|MEMPHISINDUSTRIAL|Q42025

3CBRERESEARCH?2025CBRE,INC.

Q42025Highlights

Thequarterrecordedmorethan8.2millionsq.ft.ofleasingactivity,whichwasdominatedbynewdealsratherthanrenewals.Large-scalecommitmentsincludeHyveSolutionsCorporation’s605,000sq.ft.leaseintheSoutheastsubmarketandGXOLogisticsWorldwide’s474,000sq.ft.leaseinDeSotoCounty.Additionally,ChattTransportServicesincreaseditsfootprintinthemarketbynearly1.6millionsq.ftthisquarter.Solarpanelstoragedealsinthesecondhalfplayedacriticalroleinthemarket’spositiveabsorptionfortheyear,accountingfor2.1millionsq.ft.thisquarterand2.7millionsq.ft.inthethirdquarter.Theyear’sstrongleasingactivity,withmorethan2.1millionsq.ft.yettocommence,positionsthemarketforsustainedpositiveabsorptionmovinginto2026.

Investmentsalesremainedmutedthroughthefourthquarter,reflectingbroadernationaltrendsofcautiouscapitaldeploymentamidhigherfinancingcosts.Transactionvolumewasconcentratedinsmaller,single-tenantassetsandselectportfoliotrades,asinstitutionalbuyerslargelystayedonthesidelines.NotabletransactionsincludexAI’sacquisitionof2400StatelineRdWandElmTreeFunds’purchaseof7700NailRd,bothinDeSotoCounty.Olymbecexpandeditsportfoliowiththeacquisitionof4481DistriplexCvinMemphis.

TheU.S.economyshowsmixedsignalsheadinginto2026.AI-drivengrowthandimprovingcapitalgoodsorderspointtobusinessoptimism,whilestrongercreditmarketssupportrealestateinvestment.However,consumerconfidenceremainsweak,withspendingconcentratedamonghigher-incomehouseholds.NationalGDPgrowthisexpectedtoaveragearound2%in2026,slightlysofterthan2025,ashiringslowsandlabormarketsremaincautious.ForMemphis,thesedynamicsfavorcontinuedindustrialdemandfromtechandlogisticssectors,evenasbroaderconsumersoftnesstempersretail-relatedactivity.

FIGURE3:KeyLeasingTransactions

Tenant

Location

Size(sq.ft.)

Submarket

TransactionType

Exel

3300TchulatechDr

971,880

Southeast

Renewal

ChattTransportServices

4795ImaginationDr

653,900

Southeast

NewLease

HyveSolutionsCorp

9105HacksCrossRd

605,427

DeSotoCounty

NewLease

ChattTransportServices

4600SonomaCv

603,388

Southeast

NewLease

GXOLogistics

3883USHighway51

473,760

DeSotoCounty

NewLease

Source:CBREResearch,Q42025

FIGURE4:AverageAskingRates($/sq.ft.)

$10.00

$8.00

$6.00

$4.00

$2.00

$0.00

20152016201720182019202020212022202320242025BulkStandardServiceOverall

FIGURE4:DirectVacancyRate

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

20152016201720182019202020212022202320242025

BulkStandardServiceOverall

MarketAreaOverview

Contacts

FIGURES|MEMPHISINDUSTRIAL|Q42025

Contacts

ElizabethGoodwin

SeniorManagingDirector

elizabeth.goodwin@

LaurenGoddard

AssociateResearchDirector

lauren.goddard@

MemphisOffice

6070PoplarAvenue,Suite500Memphis,Tennessee38119

?2025CBRE,Inc.Allrightsreserved.Thisinformationhasbeenobtainedfromsourcesbelievedreliablebuthasnotbeenverifiedforaccuracyorcompleteness.CBRE,Inc.makesnoguarantee,representationorwarrantyan